Enterprise Exposure Management What Does This Mean for Internal Controls - PowerPoint PPT Presentation

1 / 14
About This Presentation
Title:

Enterprise Exposure Management What Does This Mean for Internal Controls

Description:

... of its market readiness: business processes, operations, resources, and technology/systems? ... Enhances enterprise - wide business process and technology ... – PowerPoint PPT presentation

Number of Views:75
Avg rating:3.0/5.0
Slides: 15
Provided by: riskli
Category:

less

Transcript and Presenter's Notes

Title: Enterprise Exposure Management What Does This Mean for Internal Controls


1
Enterprise Exposure Management What Does
This Mean for Internal Controls
Return to Risk Limited Website at
www.RiskLimited.com
  • Kevin R. Rose
  • October 2004

2
Energy Industry Under Siege
  • 2004 Industry Environment
  • Federal/State governments (Sarbanes Oxley and FAS
    133)
  • Continued scrutiny from investors
  • Wall Street credit rating agencies
  • Increased financial transparency
  • Enterprise - wide risk across multiple
    commodities and operations

3
Enterprise Exposure Management
  • Ability to construct an overall risk/credit
    portfolio framework that enables a company to
    achieve profit targets by taking controllable
    risks
  • Fully addressing EEM requires decision-makers to
    have corporate wide access to mission critical
    data in real time
  • Redefining organizations to be able to identify,
    measure, and manage new risks across the entire
    enterprise

4
Challenges to the Energy Industry
  • The challenge posed by todays environment, is
    that energy organizations have multiple energy
    operations, business processes, and management
    systems, from front to back office, for multiple
    commodities.
  • As a result, when companies go about the task of
    managing, monitoring, reporting and controlling
    exposure, they rapidly begin to see that there
    are major business process and technology issues
    that must be addressed.

5
Key Issues Surrounding EEM
  • Exposure Management Strategy
  • Exposure Management Control Process
  • Exposure Management Infrastructure
  • Exposure Management Systems

6
First Steps
  • Develop a Plan
  • Business strategies and capabilities
  • Strategies to capitalize on new market
    opportunities
  • Marketing and supply strategies
  • Competencies and infrastructure

7
Development of an EEM Plan
  • Identifies current situation within business
    processes and technology assessment
  • Identifies any gaps within the current business
    processes and technology practices
  • Identifies business processes and technology
    opportunities

8
QuestionsDoes Our Company have
  • Clear definition of its objectives?
  • Specified goals that are required to meet the
    objectives?
  • An adequate assessment of its market readiness
    business processes, operations, resources, and
    technology/systems?

9
QuestionsDoes Our Company have
  • Precise understanding of its motivation?
  • Proper internal and external business models?
  • Logical expectations of the results?

10
Business Strategies and Capabilities
  • Define Your Objectives
  • Set Goals to Meet the Objectives
  • Business Processes, Organization, and
    Infrastructure Assessments
  • Risk Profile / Strategy

11
Guiding Principles for EEM Program
  • Governance Structure
  • Process/Procedures
  • Trading Authority Levels
  • Optimization - Exposure Limits
  • Credit Risk Controls
  • Monitor and Manage Portfolio

12
An Effective EEM Plan
  • Addresses business, operational, and market risks
    and implements business processes, controls and
    monitoring capabilities
  • Develops a portfolio management of company risk
    providing consistent measuring, monitoring, and
    reporting (information/data management)
  • Addresses authority controls/limits, exposure
    assessment, and decision making processes

13
An Effective EEM Plan
  • Identifies core skills and competencies
    requirements front to back office
  • Organizes to maximize flexibility and
    responsiveness of the company
  • Enhances enterprise - wide business process and
    technology and systems integration

14
(No Transcript)
Write a Comment
User Comments (0)
About PowerShow.com