Enterprise Risk Management (ERM) - Impact of 2017 COSO ERM ...

Enterprise Risk Management (ERM) Impact of 2017 COSO ERM Model

Institute of Internal Auditors, Detroit Chapter Meeting

February 2019

With you today

Sarah Ann Moore Director Internal Audit and Enterprise Risk, KPMG

Agenda

? The context for the COSO update

- Connecting strategy, risk and performance

? Summary of key COSO 2017 changes ? Impact on current ERM practices ? Closing thoughts

- Keys to long-term ERM success

? Questions

The context for the COSO update

The context for the COSO update

If you aren't constantly assessing strategy and risk, and adjusting as you go, there's no way you're keeping pace as a business or a board.

- Public Company Director, KPMG's Global Boardroom Insights

? 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

5

The context for the COSO update

Change is moving faster than ever...

Regulations and Policies

Designed to protect the way the world worked in the 20th century, regulations have not evolved to today's world.

Customer Behavior

Behavior is changing due to demographic shifts and economic

conditions are rippling through

sectors.

Business Models & Strategies

Those developed in the `Industrial Age' are being challenged by companies that leverage technology and agile business models to meet the demands of today's marketplace and customers.

Exponential Technologies

Fortune 500 companies are struggling

to adopt and implement technology enablers to meet changing demand.

? 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

6

The context for the COSO update

Macrotrends are changing behaviors...

Large demographic shifts are driving change in customer preferences, expectations, and spending behavior across all industries...

1 in 3 adults will be a

millennial by 2020

Boomers are entering retirement, and the aging population is expected to drive a large increase in

healthcare expenditure

By 2030, the world's 65+ population will

double to

1 billion

60%

of the world's population is expected to live in cities by 2030

Changing household makeups and an increase in

the number of single households is impacting the way consumers spend and

shop

165%

increase in number of

single households since `70s

Millennials are entering their prime spending years, and will have a significant impact on the market and purchasing behavior and preferences

Urbanization increases consumer demand for alternative

channels for purchasing all products, including oral care

products and services

...impacting people's preferences around products, convenience, and how they go about purchasing

? 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

7

The context for the COSO update

Technology is the great accelerator...

Technology is changing people's behavior

Digital path to purchase

Enhanced customer experience

Customization

72%

Percent of U.S. adults own a

smartphone, and the average consumer checks their phone

every six minutes

Technology is enabling new business models Tech giants

Startups

The Internet of Things

? 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

8

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download