Using Integrated Risk Management to Improve Strategic Outcomes and Public Transparency
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1 Canadian Evaluation Society Vancouver June 4, 2003 Using Integrated Risk Management to Improve Strategic Outcomes and Public Transparency Basil Orsini Director, Corporate Audits & Risks, Gatineau/Ottawa Mardy Duncan Director, Corporate Services, BC/Yukon Region
2 Presentation Overview HRDC 101 Evolution of Risk Management Some HRDC Experiences Evaluation Can Contribute to Risk Mitigation 2
3 The Circle of Life Events: our Client Focus HRDC helps holistically through life transitions CPP Survivor Pension CPP Death Benefit CPP Child Benefit OAS Survivor Allowance Maternity Benefits SIN Child Tax Credit OAS - GIS OAS - Allowance CPP Pension OAS Pension Low Income Pensioner Retired Homeless Labour Standards Fed Workers' Compensation Occupational Health & Safety CPP drop out provision Re-training CSLP re-payments suspended Death Birth School Work Circle of Life - Basic Client Data - Student Loan Repayment Insurance Premium CPP Contribution Workplace Standards Sickness Disability Unemployed Maternity/ Volunteer Paternity Grant & Contribution Community Assistance Student Loan CSLP, CESG CPP +18 children s benefit Employment Insurance CPP Disability Disability Tax Credit Employment Leave Education Savings Grant Child Tax Credit
4 HRDC Operations Service Canada (229) HRCCs (320) MIX: Main (100), Satellites (220) MIX: CPC (156), HRCCs (57), HRDC Partners (7), Heritage (9) Call Centres (26) MIX: EI (11), ISP (10), CSLP (4), CESG (1) Regional Offices (10) HRDC INFRASTRUCTURE Third Parties (2,550) MIX: Provinces, Municipalities, Aboriginal, NGOs, Financial Institutions, etc. NHQ (15 Branches) Internet + Kiosks MIX: Policy, Program Delivery, Processing, Corporate Support Processing Centres (122+) MIX: Internal Kiosk (3,750), External Kiosk (1,070 phasing out), 121 websites MIX: EI (100), IPOC (6), SIN + ROE (1), ISP (11), IT Centres (4).
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7 Enterprise-wide Risk Management is a natural evolution in the art of risk management Value contributed Risk Management Financial and hazard risk and controls Linkage understated Treasury, insurance and operations financial operations Business Risk Management Risk Management perspective management Business risk Linkage is clearer Business managers accountable (risk-byrisk) strategy Enterprise-wide Risk Management Business risk Linkage is crystalline Align strategy, people, process, technology and knowledge on an enterprise-wide basis
8 Risk Communications Define Objectives Identify Risk Factors Assess Risks Risk Response Learning IRM 101 is the overall process * * Federal approach with flexibility for different business lines!
9 Types of Risk Opportunity Uncertainty Hazard Harness risk to your advantage and enhance stakeholder value Event driven risk Risk arising from change PriceWaterHouseCoopers
10 Risk Identification Risk - Control Measures = Residual Risk Residual Risk - Mitigating Measures = Un Managed Risk
11 11
12 Establishing An IRM Function - How We Evolved Initial pilots led by internal audit needed to be connected to the management agenda. The Associate Deputy Minister directed that all branches report on their key risks. Senior executives are now fully engaged in managing their branch risks. IRM capacity is being progressively built. 12
13 Establishing An IRM Function - Planning Process First report on 2002 Corporate Risks was appended to the first Corporate Plan Integrated Risk Management is being embedded into the new integrated planning process Strategic Plan is being built on principles of integrated risk management: Priorities are key risk areas Initiatives are mitigating strategies 13
14 Practicing Integrated Risk Management We have adopted a common core process while encouraging flexibility by business line As a social instrument of the Federal Government, our risks include taking advantage of opportunities for Canadians Risk management reduces the likelihood but does not eliminate problems Risks should be framed for mitigation. 14
15 BC/Yukon Experiences Value for senior management team Practical, useful business application Regional process Some illustrative outcomes 15
16 HRDC Framework for IRM comprises Departmental Objectives Approach to Implementation Process for Risk Management Framework for Prioritizing Developing Mitigation Strategies Implementation Standards Action Plan & Monitoring 16
17 Corporate Risks, 2002 Public Confidence: Meeting citizen expectations for stewardship and security Knowledge & Policy: Making an impact with comprehensive, timely, and strategic knowledge creation & policy analysis Service Delivery: Meeting Citizen/Client expectations for consistent, efficient and effective service 17
18 Corporate Risks, 2002 Human Resources: Recruiting and retaining the personnel to effectively deliver citizenfocused service Information Technology: Resourcing /managing technology development and maintenance Integrated Planning/Resourcing: Aligning objectives, resources, and accountabilities 18
19 19
20 Departmental Risk Profile for 2003 will cover: Policy Program Management Client Services Corporate Service Functions Change Management 20
21 Areas for Strategic Risk Mitigation Policy & Program: Improvements to the Canadian workforce Investing in People Program Management Services: Integrated, Cost-effective & Citizen-centred Modernizing Information Technology Privacy Organizational Effectiveness Organizational Workforce Integrated Management Framework Change Management Communications 21
22 22
23 How Does Evaluation most support risk mitigation? Formative & Summative Evaluations Performance Measurement Results-Based Management Change Initiatives
24 Tool for Risk Mitigation Planning AREA OF FOCUS Program Policy Government-wide STRATEGIC RISK AREA Formative & Summative Evaluations Performance Measures Results-Based Management Change Initiatives 24
25 Significant IRM Implementation Issues For Evaluation Are... Key Issues FOSTERING... Key Issues HINDERING...
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