Enterprise Risk Management Playbook

Playbook: Enterprise Risk Management (ERM) for the U.S. Federal Government (Playbook) is the result of an interagency effort to gather, define, and illustrate practices in applying ERM in the federal context. This Playbook and accompanying appendices are tools designed to help government departments and agencies meet the requirements of the revised Office of Management and Budget (OMB) Circular No. A-123 (OMB A-123). The appendices are designed to provide high-level key concepts for consideration when establishing a comprehensive and effective ERM program. Nothing in this Playbook should be considered prescriptive. All examples provided should be modified to fit the circumstances, conditions, and structure of each agency (or other government organization). The goal of the Playbook is to promote a common understanding of ERM practices in agencies. This shared knowledge will support effective and efficient mission delivery and decision-making processes, such as policy and program development and implementation, program performance reviews, strategic and tactical planning, human capital planning, capital investment planning, and budget formulation. The Playbook is intended as a useful tool for management. It is not intended to set the standard for audit or other compliance reviews.

The material in this document is intended to be:

1. Useful to employees at all levels of an agency;
2. A useful statement of principles for senior staff, whose leadership is vital to a successful risk management culture and ERM program implementation;
3. A useful tool for those throughout an organization to improve decision-making, strategy, objective-setting, and daily operations;
4. Practical support for operational level staff who manage day-to-day risks in the delivery of the organization’s objectives;
5. A reference for those who review risk management practices, such as those serving on Risk Committees; and
6. Helpful for implementing the requirements of OMB Circulars A-11 and A-123.

To manage risk effectively, it is important to build strong communication flows and data reporting so employees at all levels in the organization have the information necessary to evaluate and act on risks and opportunities, to share recommendations on ways to improve performance while remaining within acceptable risk thresholds, and to seek input and assistance from across the enterprise.

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