Tackling Enterprise Risk Management (ERM) in Government
Understanding the Office of Management and Budget’s (OMB's) Circular A-123 and implementing ERM in your agency
Federal agencies face unprecedented risks to achieving their mission, goals, and objectives. To confront this dynamic risk environment, OMB raised the bar and expects agencies to effectively identify and manage risks using an enterprise approach. These expectations and related requirements are prescribed in a revised OMB Circular A-123 titled, Management’s Responsibly for Enterprise Risk Management and Internal Control.
Our view: How to advance Federal Enterprise Risk Management
Since the 2016 revision to OMB Circular No. A-123, “Management’s Responsibility for Enterprise Risk Management and Internal Control,” agencies have made progress in establishing ERM programs to create an integrated view of risks to their organization and manage them to an acceptable level. Deloitte and the Partnership for Public Service have researched the progress made in advancing ERM and defined steps to support greater ERM maturity—culminating in this May 2020 issue brief titled Mastering Risk.
Continuing to mature ERM capabilities
ERM success factors and why Deloitte Risk and Financial Advisory
To achieve a positive, short-term impact and set the stage for long-term program maturation, Deloitte Risk and Financial Advisory recommends a phased approach to implementing and sustaining an ERM program.
An agency’s success will be impacted by the following factors:
- Acquiring and maintaining buy-in from top leadership
- Framing ERM as a program to help achieve its mission, not as a “gotcha” exercise
- Using a consistent and common framework to identify and manage risk across the agency
- Integrating the framework into the agency’s current risk-management capabilities
- Tailoring the framework to the agency’s mission and programs, culture, and organizational and management structure
- Creating a culture where identification and elevation of risks is encouraged and rewarded
For more than a decade, Deloitte Risk and Financial Advisory’s ERM specialists have helped over 100 clients implement and mature ERM programs, including small and large federal agencies and Fortune 250 organizations.
Deloitte named a global leader in Enterprise Risk Management Consulting See the release
Leadership in federal ERM
We are passionate in supporting federal agencies implementing ERM, and recognize that our clients face unprecedented risks in achieving their mission, goals, and objectives. As an illustration of this commitment, Deloitte is entering its fifth year of working with the Partnership for Public Service to support ongoing ERM-focused events aimed at facilitating discussions on ERM topics of interest, initiatives, leading practices, and OMB updates. These events have helped create a sense of community among other federal Chief Risk Officers (CRO), ERM and internal control practitioners, and OMB. Further, we stay on top of federal ERM developments through our involvement in the Association for Federal Enterprise Risk Management (AFERM). Insights gained from this exposure mean we understand not only “what” OMB is requiring with its new ERM guidance, but also “why” and “how”.
In the news
How federal employees can become card-carrying experts on risk management
Federal News Network | November 6, 2018
Update on enterprise risk management in government
Government Matters | December 4, 2017
Federal CFO: Preparing for ERM implementation
The Wall Street Journal | November 10, 2017
Agencies get a new playbook for managing risks
Government Executive | August 3, 2016
7 steps to raise the bar on your agency’s enterprise risk management strategy
Federal News Radio | July 29, 2016
OMB prepares to ratchet up enterprise risk management
Government Executive | February 29, 2016
For media inquiries, please contact Megan Doern +1 202 368 0524
