A New Way of Looking at Risk

1. A New Way of Looking at Risk

2. What is MIRA? MaricopaIntegratedRiskAssessment (MIRA) is theChancellor’s initiativeaimed at assessing and managing risks and opportunities for MCCCD. The environment in which higher educational institutions operate has changed dramatically within the past 10 years, and these institutions now face new and growing challenges. Every day, campuses struggle with the effects of diminishing resources and conflicting public expectations. Managing the reality of these growing and new challenges requires focused strategies and the ability to manage continuously increasing competition, change and risk. To guide colleges and universities through this complex set of new realities, it is critical to understand and embrace the institutional risks that accompany a changing business environment.

3. Support from theTop In March 2000, our Governing Board, with support from the Chancellor and the Chancellor's Executive Council (CEC), approved the MIRA project as an initiative to embed ongoing risk assessment and management into the MCCCD’s daily operations and culture. In October 2003, Dr. Glasper assigned responsibility for the MIRA project to the MCCCD Risk Manager and asked that she develop and initiate a multi-year implementation plan.

4. Dr. Glasper established the following Goals for MIRA: • Increased overall effectiveness and accountability • Sound business process; greater assurance of business continuity • Clear demonstrated compliance with the applicable laws and regulations • Enhanced employee empowerment and pride • Reinforcement of strong cultural identity • Enhanced competitive advantage

5. Evolution of RiskManagement Traditional Risk Management(TRM) is defined as the original form of risk management focusing on insurable losses and/or specific functional areas of an organization. Risk Management has evolved from insurance buying when methods other than insurance buying began to be used to treat risk exposures. Originally the scope of risk management was narrowly defined to include only accidents that resulted in a loss. In the 1980’s, as sophisticated risk financing became an important alternative to insurance, risk management expanded to include other risk transfer and risk control strategies. The evolution continues as the focus of traditional risk management expands into enterprise risk management (ERM), an integrated comprehensive approach to addressing risks that may threaten the achievement of an organization’s strategic objectives. The ERM framework enables management, working without silos, to collaboratively identify, assess and manage future risks and opportunities, individually and across the organization.

6. Evolution of Risk Management MIRAintegrates Traditional Risk Management(TRM)andEnterprise Risk Management(ERM) MIRA blends concepts from both traditional risk management and enterprise risk management into a comprehensive risk management program.

7. Evolution of Risk Management Enterprise Risk Management(ERM) is an integrated approach to assessing and addressing all risks that threaten achievement of the organization’s strategic objectives. The purpose of ERM is to understand, prioritize and develop action plans to maximize benefits and mitigate top risks. • In order to attain the highest probability of success in implementing ERM, the following must be present: • Top-level support, commitment, and participation; • Adequate breadth and depth for participation within the organization; • The process of risk assessment must become institutionalized so that the entire institution becomes involved and has ownership of the outcomes within the organization; • Understanding that ERM is a continuous process, not a one-time event.

8. MIRA was created to embed risk assessment and management into MCCCD’s daily operations tominimize surprisesandmaximize opportunitiesand be more responsive to the ever-changing needs of the students and communities we serve.

9. MIRA seeks to identify risks as well as opportunities Most successful, innovative and exciting ideas are born because someone took a risk. MIRA has been created to help understand the opportunities and minimize the consequences of the risks we take.

10. What is Risk? • The combination of the probability of an event and its consequences. Risk is inherent in all types of undertaking, and may carry the potential for benefit or be a threat to success. • The opportunities, uncertainties, threats, or barriers to which MCCCD must respond in order to achieve its objectives. Risk is measured in terms of consequences and likelihoods.

11. What is Risk Assessment? Risk assessment is determining the impact of an identified risk on the organization.

12. …is evaluating the opportunities and risks associated with starting a new Veterinary Medicine Program at your college. Risk Assessment Or, Risk Assessment can be as complicated as evaluating the opportunities and complexities of starting a new Veterinary Medicine Program on campus.

13. Weighing the Risks and the Opportunities? Risk: Animals on campus increase risks with the likelihood of bites, disease transmission, etc. Opportunities:A new Veterinary Medicine Program enhances the college’s curriculum, fills a need in the community and increases FTSE.

14. In Summary

15. MIRA seeksto embed risk assessment and management into the District’s daily operations so as to minimize surprises and maximize opportunities.

16. MIRAis aimed at assessing and managing risks… …as well as opportunities.

17. MIRA opens the door for all employees to identify, assess and manage future risks and opportunities.

18. MIRAseeksto break down traditional risk management’s silo approach to managing risks.

19. MIRAasks every employee to identify risks and opportunities within their work areas and treat them accordingly. MIRA's goal is to embed risk assessment and management into the District's daily operations so as to minimize surprises and maximize opportunities and to be more responsive to the ever-changing needs of the students and communities we serve. We stand to be among an elite group of higher education institutions in our efforts to break down the limitations of the “silo approach” to managing risks by integrating traditional risk management and ERM.

20. MIRAwill make our District more responsive to the ever-changing needs of the students and communities we serve.

21. Success depends on the cooperative response from employees on every level: individually and throughout our institution.

22. Assessment tools are available to help every employee identify and chart risks within their work environments.

23. Thank you for reading this tutorial. Click here to take the quiz