Canadian Evaluation Society Vancouver

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Canadian Evaluation Society Vancouver June 4,
2003Using 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

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The Circle of Life Events our Client Focus HRDC
helps holistically through life transitions

• Student Loan
• CSLP, CESG
• CPP 18 childrens benefit

• CPP Survivor Pension
• CPP Death Benefit
• CPP Child Benefit
• OAS Survivor Allowance

Birth
Death

• Maternity Benefits
• SIN
• Child Tax Credit

• Student Loan Repayment
• Insurance Premium
• CPP Contribution
• Workplace Standards

School
Low Income Pensioner
Work

• OAS - GIS
• OAS - Allowance

Retired
Sickness

• Employment
• Insurance

• CPP Pension
• OAS Pension

Homeless
Disability

• Labour Standards
• Fed Workers' Compensation
• Occupational Health Safety

• CPP Disability
• Disability Tax Credit

Maternity/ Paternity
Unemployed
Volunteer

• CPP drop out provision
• Re-training
• CSLP re-payments
• suspended

• Employment Leave
• Education Savings Grant
• Child Tax Credit

• Grant Contribution
• Community Assistance

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HRDC Operations
Service Canada (229)
Call Centres (26)
HRCCs (320)
MIX CPC (156), HRCCs (57), HRDC Partners (7),
Heritage (9)
MIX EI (11), ISP (10), CSLP (4), CESG (1)
MIX Main (100), Satellites (220)
HRDC INFRASTRUCTURE
Third Parties (2,550)
Regional Offices (10)
MIX Provinces, Municipalities, Aboriginal,
NGOs, Financial Institutions, etc.
Internet Kiosks
NHQ (15 Branches)
Processing Centres (122)
MIX Internal Kiosk (3,750), External Kiosk
(1,070 phasing out), 121 websites
MIX Policy, Program Delivery, Processing,
Corporate Support
MIX EI (100), IPOC (6), SIN ROE (1), ISP (11),
IT Centres (4).
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Evolution of Risk Management
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Enterprise-wide Risk Management is a natural
evolution in the art of risk management
strategy
management
operations
Value contributed

• Business risk
• Linkage is crystalline
• Align strategy, people, process, technology and
  knowledge on an enterprise-wide basis

• Financial and hazard risk and controls
• Linkage understated
• Treasury, insurance and operations

• Business risk
• Linkage is clearer
• Business managers accountable (risk-by-risk)

financial
Risk Management perspective
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IRM 101
Define Objectives
Identify Risk Factors
is the overall process
Risk Communications
Assess Risks
Risk Response
Federal approach with flexibility for
different business lines!
Learning
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Types of Risk
Opportunity
Uncertainty

• Harness risk to your advantage and enhance
  stakeholder value

Hazard

• Risk arising from change

• Event driven risk

PriceWaterHouseCoopers
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Risk Identification

• Risk - Control Measures Residual Risk
• Residual Risk - Mitigating Measures Un
  Managed Risk

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Some HRDC IRM Experiences
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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.

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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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Corporate Risks, 2002

• 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

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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

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Evaluation Can Contribute to Risk Mitigation
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How Does Evaluation most support risk
mitigation ?

• Formative Summative Evaluations
• Performance Measurement
• Results-Based Management
• Change Initiatives

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Tool for Risk Mitigation Planning
AREA OF FOCUS
Policy
Program
Government-wide
STRATEGIC RISK AREA
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Significant IRM Implementation Issues For
Evaluation Are ...

• Key Issues FOSTERING ...
• Key Issues HINDERING ...