Agile Enterprise Risk Management: Risk-Based Thinking, Multi-Disciplinary Management and Digital Transformation

Cover
Half Title
Series Page
Title Page
Copyright Page
Table of Contents
List of Illustrations
Acknowledgments
About this book
	Then
	Now
	Who is this book for?
	Organization of the book
Introduction
	What’s driving the change we’re experiencing?
		Technology and technology-driven business models and the shift from capex to opex
		Process automation can displace people, even high-level people
		Cloud infrastructures level the playing field between startups and established companies
		Your company’s valuation depends on your keeping up with these trends
		Societal changes
		How can you prepare to compete?
		Implementing Agile ERM
		Agile ERM Artifacts
		Agile ERM operational processes
		Where do we go from here?
Chapter 1: Context: COVID, BLM and upheaval
	Covered in this chapter
	VUCA: our current state
	Agile vs. agility
	Business agility, the one thing you need to survive
	The challenges you’re facing
		The pressure to execute a digital transformation
	Managing your business and risks as you transform
		Traditional approaches to strategy are losing validity
		Forces driving the need for new strategic approaches
		Traditional business management practices that no longer work
		Traditional risk management practices are seriously flawed
		All management is risk management
	You already manage risks—you intuitively know how to do this
		But are we actually any good at it?
	Why you need multi-disciplinary, integrated risk management
		Why multi-disciplinary?
		Why integrated?
		Any transformation has risks
	Controlled transformation is key to managing transformation risks
	The disciplines you will need to execute your controlled transformation
	Chapter summary
Chapter 2: Enterprise risk management today
	Covered in this chapter
	Introduction
	The emergence and evolution of risk management
	RM vs. TRM vs. ERM vs. AERM
	Current State of RM
	The ERM process
		Set context in which ERM will operate
		Establish risk appetite and tolerance
		What is risk?
		Inventory risk sources
			Identify, map and prioritize where general operating risks occur
			Identify external drivers or forces that create risks and opportunities
				Strategy and execution: a chicken and egg problem
			Identify recurring and ad hoc decision processes
	Perform a risk assessment: inventory and analyze risks and develop management strategies
		Identify risks
		Analyze risks
			The traditional way
			A better way: quantitative analysis, incorporating uncertainty and variance
			Evaluate strategies and alternative treatments for each risk
		Select treatment for each risk
			Document your plan
	Establish integrated RM controls, policies and processes
	Implement, execute and monitor ERM performance
	Risk audit and risk assurance
	Evolve and improve your ERM
		Causes of substandard risk management
		Your goals for improving your risk management
	Why won’t traditional approaches to managing risk work going forward?
	Chapter summary
Chapter 3: Digital transformation, business agility and risk
	Covered in this chapter
	Invention and innovation
		Invention and innovation cycles drive markets
		Various models illustrate cycles’ impact
			The BCG Growth-Share Matrix
			The Invincible Company: a portfolio of businesses
			Parallels among the models
	Implications for your business
	Digital’s strategic impact is forcing enterprises to rethink execution
		A strategy that reflects today’s digital realities demands revised operational capabilities
		Traditional enterprise structural and management models that will have to change
	The goals and challenges of transformation
	How and why risk management needs to change
	Chapter summary
Chapter 4: The company you need to be
	Covered in this chapter
	Forces driving the target model of a business architected for the future
	Why do I need a digital transformation?
	The anatomy of your company—enterprise and business architecture
		A definition of enterprise
		Enterprise architecture
		Business architecture
	The anatomy of a digital business
		Operational infrastructure and API services
			Operational infrastructure
			API services
		Digital products and services factory
		Business intelligence and analytics
		Partner development platform
		Distributed governance model
	Digital transformation means transforming your enterprise architecture
	A preview of the transformation journey
		As-is EA and BA models
		To-be EA and BA models
		Gap analysis and implementation initiatives
		Execution competency and capability gaps
		Roadmap and execution plan
	Risk management and the controlled transformation journey
	Haven’t I already done some of this?
	AERM and the digital enterprise
	Chapter summary
	A bi-level model for early-stage and established businesses
	The case: a street cart
	Pre-MVP risk management—experimental and developmental phases
		Experimentation
		Development
	An enterprise and business architecture model of the business
		Applying the EA model to manage risk: elementary AERM
Chapter 5: Planning the transformation journey and managing its risks
	Covered in this chapter
	Change vs. transformation
	Risk management and the transformational digital enterprise
		Three layers of risk
		Managing risks in conjunction with transformation
	Scoping and planning the transformation journey
		Establish who’s governing during the transformation and after
		Articulate your strategy
		Establish your physical model infrastructure—EA/BA models, KM repository, pattern library
		Establish the logical designs of your metadata repositories
			Your EA/BA models
			Your Taxonomy
			Your Pattern Library
		Initiate and monitor the ongoing governance and management processes of your EA/AERM effort
		Scope, plan and conduct your discovery effort
		Prioritize and schedule your discovery tasks
		Focus on business processes
		Business process discovery and management decision mapping
			Example: an order management process
		Inventory and document management and governance processes
		Execute discovery
		Compile the as-is EA/BA model
		Populate your as-is model
		Map known risks to your as-is model
		Establish your preliminary to-be model
		Precepts underlying to-be design decisions
		The to-be model framework
			Operational Infrastructure (OI)
			API services (API)
			Digital Products and Services Factory (DPSF)
				Business Intelligence and Analytics (BI/A)
				Partner Development Platform (PDP)
				Distributed governance model
		Define to-be governance and management processes
		Map as-is to to-be and conduct gap analysis
		AERM’s EA-driven approach to managing the risks of transformation
		Distill transformation initiatives and populate portfolio
		Analyze the portfolio and develop your transformation program
		Establish concrete business goals
		Establish priorities to sequence your transformation
	Chapter summary
	Company overview
	HiCTools’ strategic transformation goals
	Transformation risk considerations
	As-is model
		Organization and governance
		Product management and customer-facing elements
		Operational Infrastructure, API services
		Business intelligence/analytics
	To-be model
		Redesign of the organization, responsibility allocation and governance model
		Product management and the digital products and services factory
		Perform market research
		Produce product design and prototype
		Perform market test, exposing product to customers
		Commercialize and roll product out
		Operational Infrastructure, API services
		Business intelligence/analytics
		Partner development platform
	Gap analysis
		Organization and governance—people issues
			Operational Infrastructure
		API management
		Product management
		Business intelligence and analytics
		Partnership enablement
		Governance
		Capabilities and enablers—technologies, processes and assets
			Operational Infrastructure
			API management
			Product management, digital products and services factory
			Business intelligence and analytics
			Partner development platform
	Portfolio formulation and program design
		Guiding objectives
	Foundation and initiation: priority 1 initiatives
		Create plan to address cultural issues
		Select transformation leadership
		Stand up the change management team (transformation program management office)
		Define transformation governance processes to be employed
		Plan for organizational redesign
		Compile training and upskilling requirements
		Plan for transforming the product management function
		Define architectural subject matter expert (SME) team requirements
		Stand up the enterprise and business architecture team
		Stand up the knowledge management team
		Stand up the business process management team
		Compile a work-in-progress inventory
		Create a preliminary master program schedule
	Program execution: priority 2 initiatives
		Operationalize change management processes
		Produce technical architecture deliverables
		Deliver training
		Perform EA/BA modeling
		Knowledge management and taxonomy creation
		Business process mining—process inventory creation
		Digital Products and Services factory
		Design API architecture and implement API management
		Operational Infrastructure architecture and migration
	Program execution: priority 3 initiatives
		Produce technical architecture deliverables
		Business intelligence/analytics migration and implementation planning
		Developmental business lifecycle implementation
		Partner development platform
	How risks are reflected in the program
	Case 2 summary
Chapter 6: Integration: Executing your digital transformation and integrating Agile ERM
	Covered in this chapter
	Ab initio
		Transformation and operational disciplines
		Disciplines enabling digital transformation
		Disciplines enabling Agile Enterprise Risk Management
		Disciplines for managing transformation
	Management and governance processes for transformation and ongoing operations
		Monitoring and management processes for transformation execution
		Transformation program outcome monitoring and management processes
		Operational management and governance processes
		Product development processes
			Value-stream Product Management
			Rapid product evolution and delivery
			Site Reliability Engineering (SRE)
			Developmental product portfolio management
			Operational management and governance processes
				IT operations management
				Change management
				Technology management
				Business process management
				Human resource management: staff availability, utilization, acquisition
	Implementing Agile ERM
		Precursors
		AERM operational processes
		Retrospective processes
	Measuring your progress
	Chapter summary
		Overview
		The lifecycle of an HPTCo bicycle
			The competition line
			The standard line
		Opportunities and challenges: the children’s division and digital transformation
			Strategic level
			Business model level
			Operating model level
			Operational architecture level
		Risk considerations and management
			Strategic risks
			Operational risks
				Design bikes
				Facilities—assembly, inventory, shipping, etc.
				Parts fabrication or procurement
				Sales order management, assembly, work order management, inventory
				ERP and accounting
				Marketing, sales
				Shipping
			Transformational Risks
	As-is EA/BA model
		Existing standard division operations
			Capabilities
			Enablers
		Existing HPTCo digital capabilities and enablers
			Operational infrastructure
			API management
			Digital products and services factory
			Business intelligence and analytics
			Partner development platform
			Distributed governance
	To-be EA/BA model scenarios
		Targeted to-be business and operating models
			Operating Model and Operational Architecture Scenarios
				Minimal change
				Outsourced assembly
				In-house assembly, hybrid sales
				Hybrid assembly, hybrid sales
		Risk-based thinking, risk-based decision-making
			Assumptions and concerns
	Gap analysis, transformation portfolio construction
	Transformation portfolio analysis and program construction
		Dependencies
			Children’s division
			Digital transformation
		The combined transformation program
		Program task breakdown by stage
	Risk management as reflected in the program design
	Case 3 summary
Chapter 7: Book summary and the future of work
	Covered in this chapter
	Summary
		Context
		Traditional ERM
		Digital transformation, business agility and risk
			Digital transformation and business agility
			Traditional enterprise structural and management models that will have to change
			Managing the risks around transformation
		The company you need to be
			A definition of enterprise
			Goals and drivers
			The anatomy of a company
			The anatomy of a digital business
			Digital transformation means transforming your enterprise architecture
		Planning the transformation journey and managing its risks
			Change vs. transformation
			Risk management and the transformational digital enterprise
				The three layers of risks
			The transformation lifecycle
				Establish governance for the transformation and ongoing operations, thereafter
				Compile the as-is EA/BA model
				Focus on business processes
					Business process discovery and management decision mapping
				Identify and document management and governance processes
				Conduct discovery, populate your as-is model
				Map known risks from your risk register onto the as-is model
				Initiate and monitor your governance and management processes
				Establish your preliminary to-be model
			The to-be model framework
				Define to-be governance and management processes
			Map as-is to to-be and conduct gap analysis
		The AERM EA-driven approach to managing the risks of transformation
			Distill transformation initiatives and populate transformation portfolio
				Analyze transformation portfolio and develop transformation program
		Executing your transformation
			What you should have in place at this point
			Transformation and operational disciplines
			Management and governance processes: transformation, ongoing operations
			Monitoring and management processes: transformation program outcomes
			Management and governance processes: operations
		Implementing AERM
			AERM operational processes
				Retrospective processes
				Measuring your progress
	The future of work
		AERM, the future of work and your company
	Conclusion
		Glossary