b'InsightsManaging Enterprise Risk: Insights from Tom Brandt, Chief Risk Officer, U.S. Internal Revenue Service By Michael J. KeeganFederal agencies are hardly immune towithin the agency. The intent was to establish a CRO to help the slings and arrows of outrageousleadership get ahead of potential risks while providing fortune and uncertainty. Eachcapabilities across the agency to help identify other potential day federal agency leaders facerisks that may be on the horizon. The office oversees the risks associated with fulfilling theirERM program, which provides an agencywide approach to respective program missions andrisk management to foster a risk aware culture through yet todays headlines present storieseducation, awareness, and mitigation approaches. It also of cyber hacks, abuses of power,helps IRS units incorporate risk management principles into extravagant spending, and a host ofstrategies and daily operations.other risk management failures. In some cases, if leaders had taken the time to foresee and mitigate potential risks, many ofWhat are your primary responsibilities as CRO at IRS? these failures could have been either avoided or at least had less of an impact. It is a leadership imperative for governmentWhen the CRO position was established, my primary executives to mitigate the potency of uncertainty by managingresponsibility was to develop, establish, and then execute a the realities of risk. Employing an enterprise risk managementcommon risk management framework for how we capture, (ERM) process can assist leaders in doing just that. report, and address risks within the IRS. I continue to mature this approach while also bringing to the fore emerging The U.S. Internal Revenue Service (IRS) has sought to doproblems and issues and getting out in front of the potential just this and develop an effective enterprise approach tonegative impact of risk. identifying, measuring, and assessing risks and developing effective policy responsespursuing enterprise riskIn addition, I also serve in a consulting capacity that supports management as an approach. What are the benefits ofthe IRS leadership team and others who are perhaps facing pursuing enterprise risk management? How can riskrisk issues. In this role, I need to continue to evolve and management enhance agency decision making? What ismature ERM within the agency in accordance with the IRSs the mission of the Association for Federal Enterprise Riskenterprise risk management vision. I participate in IRSs Management (AFERM)? Tom Brandt, chief risk officer (CRO)strategy and objective setting discussions, including strategic at IRS, joined me on The Business of Government Hour toplanning and decision-making forums, and provide risk share his insights on these topics and more. The followingperspective. I also work to ensure proper risk management is an edited excerpt of our discussion, complemented withownership by the business units and guide integration of additional research. ERM with other IRS planning and management activities. My office also works to promote risk awareness at the What is the history and mission of the IRS Office of ChiefIRS. Integral to doing this, I partner with the business and Risk Officer?functional units on their most important risks. I also represent the IRS in the Treasury ERM Council, the Federal Interagency The chief risk officer position within IRS is relatively new.ERM Council and other forums.It was established in 2013 in the aftermath of a major crisis WINTER 2019 / 2020 IBM Center for The Business of Government 29'