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
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Presentation Overview
HRDC 101
Evolution of Risk Management
Some HRDC Experiences
Evaluation Can Contribute to Risk Mitigation
• Student Loan Repayment• Insurance Premium
• CPP Contribution• Workplace Standards
Circle of Life- Basic Client Data -
Circle of Life- Basic Client Data -
Birth
Birth Schoo
lSchoo
l
Sickness
Sickness
Disability
DisabilityMaternit
y/ Paternit
y
Maternity/
Paternity
Volunteer
Volunteer
Unemployed
Unemployed
HomelessHomeless
RetiredRetired
Low Income Pensioner
Low Income Pensioner
DeathDeath
WorkWork
The Circle of Life Events: our Client FocusThe Circle of Life Events: our Client FocusHRDC helps holistically through life transitions
The Circle of Life Events: our Client FocusThe Circle of Life Events: our Client FocusHRDC helps holistically through life transitions
• Maternity Benefits• SIN• Child Tax Credit
• Student Loan• CSLP, CESG
• CPP +18 children’s benefit
• Employment Insurance
• CPP Disability• Disability Tax Credit
• Employment Leave• Education Savings Grant
• Child Tax Credit• Grant & Contribution
• Community Assistance
• CPP drop out provision• Re-training• CSLP re-payments suspended
• Labour Standards• Fed Workers' Compensation • Occupational Health & Safety
• CPP Pension• OAS Pension
• OAS - GIS• OAS - Allowance
• CPP Survivor Pension• CPP Death Benefit• CPP Child Benefit• OAS Survivor Allowance
HRDC Operations
HRDC INFRASTRUCTURE
Processing Centres(122+)
MIX: EI (100), IPOC (6), SIN + ROE (1),ISP (11), IT Centres (4).
Internet + Kiosks
MIX: Internal Kiosk (3,750), External Kiosk (1,070 phasingout), 121 websites
Third Parties (2,550)
MIX: EI (11), ISP (10), CSLP (4),CESG (1)
Service Canada (229)
Regional Offices (10)
NHQ (15 Branches)
HRCCs (320)Call Centres (26)
MIX: CPC (156), HRCCs (57),HRDC Partners (7), Heritage (9)
MIX: Main (100), Satellites (220)
MIX: Policy, Program Delivery,Processing, Corporate Support
MIX: Provinces, Municipalities, Aboriginal, NGOs, Financial Institutions, etc.
Enterprise-wide Risk Management is a natural evolution in the art of risk management
Risk Management perspective
Val
ue c
ontr
ibu
ted
financial
operations
Risk Management
• Financial and hazard risk and controls
• Linkage understated• Treasury, insurance and
operations
management
Business Risk Management
• Business risk• Linkage is clearer• Business managers
accountable (risk-by-risk)
strategy
Enterprise-wide Risk Management
• Business risk • Linkage is
crystalline• Align strategy,
people, process, technology and knowledge on an enterprise-wide basis
is the
overall
process *
Define Objectives
IdentifyRisk
Factors
AssessRisks
Risk Response
Learning
Ris
k C
om
mu
nic
ati
on
s
* “Federal” approach with flexibility for different business lines!
IRM 101IRM 101
Types of Risk
•Event driven risk
•Risk arising from change
•Harness risk to your advantage and enhance stakeholder value
Hazard
Uncertainty
Opportunity
PriceWaterHouseCoopers
Risk Identification
Risk - Control Measures = Residual Risk
Residual Risk - Mitigating Measures = Un Managed Risk
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• 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.
Establishing An IRM Function- How We Evolved
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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
• 2003-2005 Strategic Plan is being built on principles of integrated risk management:
– Priorities are key risk areas – Initiatives are mitigating strategies
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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.
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BC/Yukon Experiences
• Value for senior management team
• Practical, useful business application
• Regional process
• Some illustrative outcomes
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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
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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
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Human Resources: Recruiting and retaining the personnel to effectively deliver citizen-focused service
Information Technology: Resourcing /managing technology development and maintenance
Integrated Planning/Resourcing: Aligning objectives, resources, and accountabilities
… Corporate Risks, 2002
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Departmental Risk Profile for 2003 will cover:
• Policy
• Program Management
• Client Services
• Corporate Service Functions
• Change Management
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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
• Formative & Summative Evaluations
• Performance Measurement
• Results-Based Management
• Change Initiatives
How Does Evaluation most support risk mitigation ?
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Change Initiatives
Results-Based Management
Performance Measures
Formative & Summative Evaluations
ST
RA
TE
GIC
RIS
K A
RE
A
AREA OF FOCUS
Pro
gram
Po
licy
Gov
ernm
ent-
wid
e
Tool for Risk Mitigation Planning