22.5 Integration and Mainteneance

Integrate IRM into an organization’s existing corporate calendar:

  • Budget season

    • Certain parameters should be set (e.g. correlations, CoV’s) at the beginning of budget season

    • Others can be set as part of the budget process (e.g. Premium)

  • Timeline for review of internal financials

  • Timeline for bonus pool

Update frequency

  • Major updates should be no more than twice a year

  • Minor updates can be handled by scaling

    • \(\sigma\) can be calculated by keeping the CoV constant

    • Correlation parameters don’t need to be updated very frequently

Input/Output

  • Needs clear ownership similar to accounting figures

  • Source of inputs

  • Who published the outputs and reports

  • Have analytical templates that are endorsed by IRM to prevent misuse

22.5.1 Recommendations

Cycle: Integrate into annual planning process

Updating: Major updates no more than twice a year; minor update with scaling

Controls: Maintain centralized controls of inputs, outputs and even application templates