Enterprise Risk Management

The updated Office of Management and Budget (OMB) Circular No. A-123, "Management's Responsibility for Internal Control," (include link to document) July 15, 2016, emphasized the importance of risk management. “Enterprise Risk Management (ERM) is an effective agency-wide approach to addressing the full spectrum of the organization’s significant risks by considering the combined array of risks as an interrelated portfolio, rather than addressing risks only within silos. ERM provides an enterprise-wide, strategically-aligned portfolio view of organizational challenges that provides improved insight about how to more effectively prioritize and manage risks to mission delivery” . The Chief Financial Officers Council (CFOC) and the Performance Improvement Council (PIC) released the Playbook: Enterprise Risk Management (ERM) for the U.S. Federal Government (Playbook). The Playbook guidance is a tool designed to help Departments and Agencies meet the requirements of the revised OMB Circular A-123.

In order to comply with the Circular, it is essential that each AT&L organization incorporate risk management into the day decision-making and management practices. AT&L is revising the MICP to integrate the ERM approach into AT&L’s management and culture. For example in FY 2016 reporting, AT&L developed a risk profile template. A Risk Profile template can help identify major risks stemming from mission and mission-support operations; and analyze those risks in relation to achievement of strategic objectives. Each AT&L organization is required to assess their internal controls (IC) and associated risk. If assistance is needed please email the AT&L MICP team at osd.pentagon.ousd-atl.mbx.micp1@mail.mil.

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