Enterprise Risk and Opportunity Management

Chapter 4The Development and Utilization of EROM Templates for Performance Evaluation and Strategic Planning

4.1 Overview

As discussed earlier (e.g., Section 1.1.4), the literature on ERM/EROM contains a significant amount of guidance on the organizational aspects of the topic and the fundamental framework to be used. However, it provides very few details on how to conduct the analyses that are needed in order to reap the benefits. Chapter 4 attempts to fill that gap by describing and demonstrating how comprehensive EROM analyses can be conducted using templates. In Sections 4.1 through 4.8, the templates will be introduced by pursuing an example that examines EROM's role in evaluating organizational performance for its ongoing programs, projects, activities, and initiatives, and in identifying and evaluating actions and controls to reduce risk and/or seize opportunity. In Section 4.9, the example will be modified to show how the same templates with different inputs can be applied to examine EROM's role in organizational planning, where the organization is interested in examining its likelihood of success in meeting its top objectives for various candidate sets of programs, projects, and so forth that are in the conceptual stage.

The use of templates is a practical, efficient, and broad-based approach for implementing the framework for EROM that is discussed in Chapters 2 and 3. To illustrate how templates can be applied effectively, a real-world example relevant to NASA will ...