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Creating and Protecting Value: Understanding and Implementing Enterprise Risk Management | 15

In this part of the analysis, input from business line leaders then allows for a strategic risk assessment utilizing the
is imperative to ensure that the analysis includes all critical related Strategic Risk Management Model (see Figure 5).
business strategies. This detailed analysis of the strategies
Figure 4. Return Driven Strategy Model

ETHICALLY
MAXIMIZE
WEALTH
FULFILL TARGET
OTHERWISE UNMET APPROPRIATE
CUSTOMER NEEDS CUSTOMER GROUPS

DELIVER
INNOVATIVE OFFERINGS BRAND
OFFERINGS OFFERINGS

MAP AND ENGAGE BALANCE
PARTNER REDESIGN EMPLOYEES AND FOCUS COMMUNICATE
DELIBERATELY PROCESSES OTHERS AND OPTIONS HOLISTICALLY

GENUINE ASSETS
VIGILANCE TO FORCES OF CHANGE
DISCIPLINED PERFORMANCE MEASUREMENT AND VALUATION
Version 7.2 Copyright ©2000-2007, Frigo and Litman.
Source: Frigo, Mark L. and Joel Litman. DRIVEN: Business Strategy, Human Actions and the Creation of Wealth. Strategy & Execution (2007). Used with permission.
Figure 5. Strategic Risk Management Model

INVESTOR
RISK

CUSTOMER MARKET
RISK RISK

OPERATIONS
INNOVATION RISK BRAND-REPUTATION
RISK RISK

EMPLOYEE
PARTNERING VALUE CHAIN ENGAGEMENT PLANNING COMMUNICATION
RISK RISK RISK RISK RISK

GENUINE ASSETS AND UNIQUE CAPABILITIES AT RISK

EMERGING EVENTS RISK SUSTAINABILITY RISK FINANCIAL MARKETS RISK REGULATORY RISK
GOVERNANCE RISK FINANCIAL REPORTING RISK VALUATION RISK FRAUD RISK

Version 1.0 Copyright ©2009, Frigo and Anderson.
Source: Frigo, Mark L. and Richard J. Anderson, Strategic Risk Management for Directors and Management Teams (2011). Used with permission.
The Strategic Risk Management Model provides a way to It is used as an aid in the second step in the Strategic Risk
identify the risks related to each of the strategies identified. Assessment Process.

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