The Integration of ERM with Strategy and Performance
When your Board talks about enterprise risk management, are you focused on the right risks, the ones that move the needle? Does the structure of the meeting and the management participants instead dictate attention on easy to identify but lower level – and not company-strategic – risk? Do you spend more than 20 minutes at a meeting on ERM? As a director, do you feel that you could provide more leadership and direction to your company's executive team if the Board were to spend more focused time and attention on those risks that could cause a 10% revenue hit or an EPS miss of several pennies a share?
Directors' responsibility for enterprise risk management means more than reviewing a heat map and making sure that management has identified the correct risks for the company, as well as the magnitude and probability of those risks. It means becoming informed about management's process for scanning the horizon for emerging risks while detailing the known risks, with increased attention to highly probable strategic and operational risks first, then other risk like cybersecurity, business continuity, and legal and financial compliance.
How fast are your markets growing and are you positioned to match or exceed that? Are you seeing "disruption" that could make your products irrelevant or change ways of doing business? What about geopolitical, economic, or environmental risks that change the cost dynamics of your ability to produce your products profitably? When the next data privacy breach, corporate headquarters building shutdown, or revenue recognition investigation happens, are you comfortable as a director that your company and its management team are prepared? Have you thought through the ways to stay ahead of these and other issues—and consider them as you think strategically and act tactically? Is there a communication plan in place? When do you think you will be notified? How much confidence do you have that the Chief Executive Officer, operations staff, Chief Financial Officer, General Counsel, or Chief Information Officer are prepared to respond to the next crisis?
NACD New England chapter's Feb. 13, 2018 program will cover enterprise risk management, from risk identification to management and mitigation, from appropriate frameworks for ERM to communication plans. Equally important, panelists and you, the audience, will have a chance to explore the interplay between corporate strategy and enterprise risk, where to ask questions about risk balance, how to deal with disruption to the business, and how to ensure that you are adding value and perspective to the strategic planning process.
James Lam is the president of James Lam & Associates and a director of E*TRADE Financial, where he chairs the risk oversight committee and serves on the audit committee. He previously served as founder and president of ERisk, partner of Oliver Wyman, chief risk officer of Fidelity Investments, and chief risk officer of GE Capital Markets Services. Lam was named the inaugural Risk Manager of the Year by the Global Association of Risk Professionals in 1997 and one of the “100 Most Influential People in Finance" by Treasury & Risk magazine in 2005, 2006, and 2008. An NACD Board Leadership Fellow, Lam was recognized in the 2017 NACD Directorship 100. He is the author of multiple books published by Wiley. His best-selling books have been translated into Chinese, Indonesian, Japanese, and Korean. The latest book, Implementing Enterprise Risk Management, was published in March 2017. In addition to serving as faculty for NACD’s foundation courses, Lam is on the Carnegie Mellon University faculty for their CRO Executive Certification Program.
John R. Egan is as a director of NetScout Systems, Inc., where he serves as lead director, chair of the Nominating and Corporate Governance Committee, and member of the Audit Committee and Finance Committee. He is a founding managing partner of Egan-Managed Capital, a Boston-based venture capital fund specializing in New England, information technology, and early stage investments, and is a managing partner of Carruth Associates. Mr. Egan also serves as Non-Executive Chair of the Board of Progress Software, where he also serves as a member of the Audit, Compensation, and Nominating and Corporate Governance Committees. He is the lead director at Verint Systems, where he chairs the Nominating and Corporate Governance Committee and is a member of the Compensation Committee.
Mr. Egan was a member of the Board of Directors at EMC Corporation and of VMWare. While an executive at EMC, he was responsible for worldwide sales, engineering, operations, and customer service. Mr. Egan also serves on the Board of Trustees at Boston College and as a director for two other privately-held companies.
Jennifer Miller is the Chief Business Sustainability Officer for Sappi North America, the North American subsidiary of Sappi Limited (JSE/NYSE: SAP), a global producer of coated printing papers, specialty packaging, and dissolving pulps for textile use. Jennifer is focused on diversification opportunities for sustainable business growth, which includes customer, market and business model risk mitigation strategies. Jennifer has held a number of senior leadership positions since joining Sappi in 1996, including most recently managing its North American coated paper business.
Previous to Sappi, she spent 15 years with Boston Gas Company, now a part of National Grid. Here she served as Vice President and General Counsel, leading proactive business strategies during an era of complex economic deregulation at both the state and federal level.
Jennifer joined the Board of Directors of Ameresco, Inc., a leading energy efficiency and renewable energy company (NYSE: AMRC) in 2015 where she sits on both the audit and nominating committees. Ameresco is transforming its core businesses, utilizing innovative technologies to increase the size and value of its efficiency projects and taking steps to grow its owned energy asset portfolio which produces high margin recurring revenue.
Jennifer also serves on the Board of Directors of Eliot Community Human Services, a private non-profit providing health services throughout the Commonwealth of Massachusetts, and is the vice chair of the Paper and Packaging Board, an industry group working to reverse secular decline in paper and paper-based packaging through the “How Life Unfolds” consumer campaign.
Jennifer has a B.A. in Economics from the University of Washington and a J.D. from Cornell Law School.
Jeff Levinson serves as General Counsel at NetScout, a leading provider of network service assurance, cybersecurity, and business intelligence solutions. As a public company general counsel, he has a record of success in aligning legal and business goals, advising the Board and executive team, and accomplishing corporate missions, as well as supporting charitable and community initiatives. He oversees mergers and acquisitions, corporate governance, SEC and regulatory compliance, enterprise risk management, contracts/licensing, litigation, strategic partnerships, and intellectual property. Mr. Levinson led the legal effort for the $2.3 billion acquisition of a global service assurance business, tripling company revenue and employees, and the associated $800M credit facility, as well as previous cross-border acquisitions.
Mr. Levinson serves on the NACD New England Chapter programs committee and has served as board member at the Jericho Road Project, president of the Association of Corporate Counsel Northeast Chapter, and chair of the ACC's Law Department Management Committee (Leadership/ Strategy/ Operations). He authored a practical guide for in-house counsel, Managing the Corporate Legal Department: How to Create Plans, Develop Processes, and Lead the In-House Legal Team (Bloomberg BNA). Mr. Levinson holds degrees from Harvard and Boston University School of Law, plus an MBA from Babson College's evening program.
Location and Time
Boston Marriott Newton
2345 Commonwealth Avenue
Newton, MA 02466
Program Start: 7:30 AM - 9:00 AM
Registration Begins 30 minutes prior.