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Creating and Protecting Value: Understanding and Implementing Enterprise Risk Management | 17

performance reporting processes and then integrating The use of colors, graphics, and other visuals have
risk reporting into those existing processes. For example, also proven helpful in bringing clarity to this reporting.
many organizations use balanced scorecards as part of For example, some organizations have used “risk
their performance reporting processes. Some of these dashboards” to facilitate this reporting. Another useful
organizations have expanded their balanced scorecards to visual tool is a strategy map, which are visual tools linking
include risk reporting and monitoring. Consideration should the organization’s objectives, strategies, risk, and risk
also be given to periodic reporting of emerging or systemic management processes. An example of a strategy map is
developing risks. below in Figure 6.

Figure 6. Strategy Map Example

Create and Protect Shareholder
and Stakeholder Value

Strategic Improve Profitable Growth Increase Value from Organizational
Objectives Productivity from New Technologies Existing and New Efficiency
and Services Customers and Leverage
Customer Cost & Quality Develop Technologies Deliver Highly Customer
Strategic Leadership to Improve Cost and Valued Solutions Focused
Objectives Performance

Strategic Themes Return Driven Strategy Tenets
Internal Process Fulfill Otherwise Target
Strategic Unmet Customer Ethically Maximize Wealth Appropriate
Objectives Needs Customer Groups
Innovative Deliver Brand Partner
Offerings Offerings Offerings Deliberately
Map and Engage Employees Balance Focus Communicate
Redesign Processes and Others and Options Holistically

Strategic Risk Strategic Risk Management Framework Risks
Genuine Assets and Unique Capabilities Risk
Emerging Events Sustainability Financial Markets Regulatory
Risk Risk Risk Risk
Governance Financial Reporting Valuation Fraud
Risk Risk Risk Risk
ERM Governance and Culture | Strategy and Objective-Setting | Performance
Components Review and Revision | Information, Communication, and Reporting

Source: Adapted from Frigo, Mark L. and Richard J. Anderson, Strategic Risk Management for Directors and Management Teams (2011). Used with permission.

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