This memorandum is to document the establishment and implementation of an Enterprise Risk Management program at the PBGC Office of Inspector General. By adopting a portfolio view of risks, ERM will enable the OIG office to:
- lead by example,
- provide for more effective risk management and internal control in accordance with OMB Circular A‐123,
- align management activities with the CIGIE Quality Standards for Federal Offices of Inspector General (also known as the “Silver Book”),
- concentrate efforts towards key points of failure and reduce or eliminate the potential for disruptive events,
- allow for risk‐based planning, and
- protect the PBGC OIG brand (“independent, positive engagement”) and identify opportunities to create value.
The framework for this program is based on (the soon‐to‐be issued) OMB Circular A‐123, The Orange Book, Management of Risk – Principles and Concepts (October 2004, HM Treasury), and the Committee of Sponsoring Organizations of the Treadway Commission’s (COSO) Enterprise Risk Management Framework. This memorandum describes responsibilities and governance structure, the foundation of this program, the components of this program, the external and internal environment to provide necessary context for assessment of OIG risks, the methodology for developing our risk appetite, and the methodology for developing our risk profile.