Tony Whitworth Vice-President Finance & Resources

1. Tony WhitworthVice-President Finance & Resources What is Risk Management - Panel Discussion

2. Risk • “The threat or possibility that an action or event will adversely or beneficially effect an organization’s ability to achieve its objectives.” • Need to quantify risk and organize structure to manage.

3. Board of Governors President’s President’s Provost and Vice - President Academic Vice President (Finance & Resources) Executive Executive and/or Committee Committee Risk Management Steering Committee Risk Management Steering Committee Risk Information and Metrics Operational Risk Management Committee Operational Risk Management Committee Risk Risk Colleges Colleges Management Management & Units & Units and Insurance and Insurance ERM Policies Services Services Audit Services SecurityServices Information Technology Health, Safety & Environment Audit Security Health, Research Research Services Services Services Safety & Services Services Environment Student & Enrolment Services Student & Financial Facilities Facilities Management Financial Services Others Enrolment Services Management Services Services Risk Management Structure

4. Risk Attitude Risk Awareness Risk Management Risk Reporting Risk Management Cycle Risk Management Review

5. Strategy Policy Appetite Exposure Tolerance why and what how RM operates risk-seeking/adverse open/closed limits Risk Attitude

6. Risk AwarenessEnterprise-wide Risk Management (ERM) • Identify/analyse/categorize • governance, management, operations, reputation, resources, finance, strategic • Evaluate and rank • Probability, impact • Identify actions • Forecast new probability impact after actions • Implement actions • Accountability

7. Risk Management Actions • Not only negative (ensuring that bad things are less likely to happen) • But also positive (making it more likely that good things will happen) • Not an end in itself but part of good management & business process for determining & attaining the strategic objectives of the organization • Enables assessment of risk implications in terms of governance, management, quality & reputation as well as resources

8. Risk Management (RM) • Avert potential misfortunes and disasters • Guard against harm & damage to individuals, infrastructure & reputation • Minimize missed opportunities

9. Risk Management • Treatment • Avoid, accept, accept but control, reduce, share • Monitor • Periodic, early worry, key indicators, fluctuation • Residual risk

10. Risk Reporting • Risk Register • Identify/categorize • Evaluate • Assign probability and impact (1 to 5) • Treatment • Appraised

11. Risk Classification • Use probability/impact rankings • Impact: insignificant, minor, moderate, major, catastrophic • Probability: rare, unlikely, possible, likely, almost certain • Identify • Most important (red) – critical • Moderate (yellow) • Least important (green) –not material

12. Actions • Needed when risk “red” • Identify responsibility /accountability • Status of risk • Measurable • Timeframe • Change over time

13. U of S Strategic Directions • Attract & retain outstanding faculty. • Increase campus-wide commitment to research, scholarly and artistic work. • Establish the U of S as a major presence in graduate education. • Recruit & retain a diverse and academically promising body of students & prepare them for success in the knowledge age.

14. U of S Example Risk: investment returns lower than forecast Probability (1-5) 3 Impact (1-5) 4 Red Strategy: reduce, avoid, share Actions • establish BoG Investment Committee • establish Money Purchase pension plans • increase professional strength in Treasury • change endowment spending policy

15. U of S Example (cont’d) Risk: investment returns lower than forecast Actions (continued) • broader range of investments • change fund managers • communicate with donors Revised Probability (1-5) 3 Impact (1-5) 4 Yellow Accountable: Treasurer

16. U of S Example Risk: failure to recruit, renew, retain faculty Probability (1-5) 4 Impact (1-5) 5 Red Strategy: reduce Actions • increase new faculty support • change collective agreement • promote campus

17. U of S Example (cont’d) Risk: failure to recruit, renew, retain faculty Revised Probability (1-5) 2 Impact (1-5) 5 Remains Red Accountable: HRD/Colleges

18. Questions? Thank You