A presentation for the AURIMS Conference 2006, Albany Campus, Massey University

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Implementing a risk management framework a
case study
Its not rocket science..

• A presentation for the AURIMS Conference 2006,
  Albany Campus, Massey University
• Presentation by
• Anne Walker, Risk Manager
• Massey University
• New Zealand

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(No Transcript)
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Presentation content

• New Zealand Tertiary Sector the context
• Challenges we face
• Massey University risk management framework
• Our journey
• Lessons we are learning

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New ZealandTertiary Sector
Research

• Post-graduate degrees

Universities (8)
Polytechnics (20)
College of Education (4)
Wananga (3)
Private Training Establishments (-600)
Sub-degree
Applied Training Skills

• post-compulsory education - 3 billion p.a. -
  1.3 GDP
• structural change over last 5 years
• growth of wananga and PTEs

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Government Fundingby Provider Type
Source Ministry of Education -2002
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Tertiary Sector Reformin New Zealand

• Excellence Relevance Access
• Knowledge society
• Tertiary Education Strategy (TES)
• Focus on quality
• New funding framework (e.g. PBRF)
• Differentiation

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Fiscal Reality
Source Scott Scott (2004)
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Implications for Universities in New Zealand

• Planning implications
• contribution to the government
  objectives
• Changes to the funding framework
• performance element
• student fee maxima
• Dependence on non-government revenue
• international students
• commercialisation
• entrepreneurial activities

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Whats driving risk in our Universities

• Strategic
• New or emerging technologies
• Governance processes
• Commercialisation opportunities
• Excess capacity
• Quality academic programmes
• Increasing expectations of students

• Operational
• Accountability
• IP protection
• HR management
• Security
• Competition
• Student behaviour
• Contracting

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Massey University
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Strategic Risk Drivers

• Government priorities
• Funding changes
• Demographic trends
• Legislative change
• Global economy
• New teaching and IT technologies
• Outcomes for Maori people
• Environment

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The Risk Management Challenge
Achieving strategic goals
Enterprise-wide Risk Management
Managing hazards and compliance
Financial Operations Management Strategy
Business Risk Management
Value Contributed

• all risks
• linkage to strategic goals
• key governance tool for
• governing bodies

Risk Management
Risk Management Perspective
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Risk Management Framework
Governing Body
AS/NZS 4360
All Risks
People Financial Legal Academic Moral Reputational
Commercial Operational
All Activities Parent Subsidiaries
Risk Drivers
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Massey UniversityRisk Management Framework

• Governance responsibilities
• Risk identification and analysis
• Risk control
• Risk treatment
• Performance review
• Performance assurance

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AS/NZS 4360 Risk Management Standard
Establish the Context
Identify Risks
Monitor Review
Analyse Risks
Communication Consultation
Access Risks
Evaluate Risks
Treat Risks
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Massey UniversityPlanning Framework
Charter ? 10 Year Plan ? Profile (3 Year
Plan) ? Annual Plan ? Performance Reporting
Framework and Risk Management Framework
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Activities supporting Implementation
Pull Clear expectations Governance
expectations Performance measurements against
KPIs Risk reporting Annual audit of risk
management systems Penalties, recognition and
rewards
Provision of senior management support Links to
strategic planning Defined responsibilities
competencies for identifying and reporting
risk Education, awareness and training
programmes (incl. risk workshops) Learning
though application of risk/ knowledge
management tools Push
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Where have we got to??
Strategic Plans
Investment analysis
Enterprise-wide Risk Management
Health and safety, compliance, policies
Financial Operations Management Strategy
Business Risk Management
Value Contributed
We are about here
Risk Management
Risk Management Perspective
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Final thoughts