Charles (“Bud”) Schrock is the creator of Performance Risk Management.
The Development of Performance Risk Management
COSO published “Enterprise Risk Management – Integrated Framework” in 2004. While the framework had many good ideas, other key features simply didn’t seem practical based on Bud’s experience as Chief Audit Executive for several very high performing companies.
Over the next few years, Bud monitored organizations as they tried to implement COSO’s framework, often with very limited success. COSO’s impracticalities were showing themselves in the real world. Bud was confident that the overall concept – managing risk – was an inherently good idea. The problem had to be with the implementation.
So he reflected back on his experience. Successful organizations focus on goals and results, not “risk management”. Risk management was simply part of the broader management culture – the best executives intuitively managed risk to drive strong results.
Bud realized that, to be most effective, these risk management skills needed to be part of a shared management culture. Everyone needed to understand how and why risk management is a practical component of delivering stronger and more consistent bottom-line results. If these skills can be explained simply and practically, they will naturally become an embedded component within an organization’s culture of success.
With these goals as his guide, Bud took a systematic approach to decomposing and analyzing the practical side of risk management. Every part of his approach had to be cost-effective and improve the odds of delivering better results. The approach needed to apply equally to for-profit and not-for-profits. It had to be useful whether applied to a short term project or an ongoing activity. In other words, his approach needed to be universal in its application and help produce better results regardless of the endeavor. He kept the good ideas from COSO and elsewhere. He modified those ideas that had a kernel of truth, but were not useful in their current form.
The result is Performance Risk Management. He chose this name to emphasize that “performance” must always be the focus. Risk management is simply a set of management tools that help deliver better performance.
Background and Current Activities
Bud has a BS in Accounting from Bradley University along with an MS in Information Systems from DePaul University.
He is a CPA, CIA, and CRMA.
He is currently Senior Vice President at Inland Bank and Trust in Oak Brook, IL, where he heads up Internal Audit. He is also a Clinical Professor of Risk Management in the Center for Strategy, Execution, and Valuation at DePaul University in Chicago. He's on the Board of Advisors for Thomson Reuters's bi-monthly magazine "Internal Auditing".
Mostly, he spends his time publishing, blogging, speaking, and lecturing to help organizations realize the benefit of Performance Risk Management.