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  • Supporting Great Governance Day 1 of 1
  • Supporting Great Governance Day 1 of 2 9;00 am start Joan (or Jo) to welcome folks and to outline: Why ONPHA decided to provide this training, why it is needed and the ultimate goal Why a focus on PMs and EDs - ONPHA believes that the senior staff person has a unique role to play in animating their Boards to be great 2-days of learning, group work and sharing - plus there is a resource rich toolkit that contains loads of tools and helpful working documents ONPHA also provides ongoing resources through its web-based downloadable resources, Great Governance DVD and resource kit, Governance and Corporate Practices Handbook, conference course and workshops, networking and education through regional meetings, customized courses and consulting - we are also available by phone - here to strengthen the social housing sector in Ontario - and great governance at the Board table is an important part of this Introduce the session trainer
  • Supporting Great Governance Day 1 of 2 Trainer to provide facilitate introductions Participants to respond in 2-3 sentences each Trainer to flip chart the responses - to help gauge learning areas of interest - and to ID areas that are gapping and to discern where to use the co-development strategy to possibly address unanswered needs as well as access additional resources over night Trainer to ask : Who in the room reports directly to a Board as a direct hire? And who is a property manager who has been hired through a property management firm? There are differences in these 2 positions - and I encourage folks to share their different perspectives based on where they sit in the organization and who they report to…
  • Supporting Great Governance Day 1 of 2 Review overarching goals for the session Message about Doing Things One Step at a Time in an Achievable Way Please know that we will be covering a lot of areas in the next 2 days and out hope is that there is something you can take away to work on that is manageable. Our goal is to encourage you to walk away with a few manageable “chunks”or components of work. We can only ever start where we are at - so one key message we really want to get across to you is that change comes in steps - in baby steps. This all does not have to happen tomorrow. The goal is to work slowly and steadily towards your goals and desired outcomes. So if you walk away with 2-3 chunckable and manageable pieces of work related to supporting your Board, you will be well on your way to supporting them to achieve great governance.
  • Supporting Great Governance Day 1 of 2 Review these guidelines for the session - as agreements we make to each other for the next few days together. Ask for additional guidelines that are important to the group - and then have them sign off on them.
  • Supporting Great Governance Day 1 of 2 What do you think governance is? Link to next slide - here a definition from Catherine Boucher, a PM in Ottawa:
  • Supporting Great Governance Day 1 of 2 Suzanne to ask: why is great governance important to you personally? To begin to get participants to articulate the benefits of mobilizing a great Board in their own organizations - so they can answer: “What’s in it for me?” Suzanne to report on comments made from 4 advisors on this training program: Boards often don ’t understand their job and the business of what we are doing - they don’t know what questions to ask. (A. Hains) Boards can get so personality-driven - great governance creates a more balanced Board. (A Hains) Conflict of interest can be a huge problem. (Trainer to share story of Board hiring a PM from the Board!) Further, Boards don ’t know what they don’t know. They need to think about what they can contribute and how they can get community back into community housing (Shelly U) Small organizations rely too heavily on the PM and rarely undertake broad strategic planning while in mid to large organizations, Boards micromanage. Many are so insular that they don ’t think of long term viability. (Arlene Rawson) There is often a lack of consistent supervision and process (P. Bell) These factors - and more - have a direct impact on our jobs and our programs and impact in the community. Great governance - while it takes work, time and resources - ultimately, it makes our jobs easier and more effective.
  • Supporting Great Governance Day 1 of 2 Suzanne to ask: why is great governance important to you personally? To begin to get participants to articulate the benefits of mobilizing a great Board in their own organizations - so they can answer: “What’s in it for me?” Suzanne to report on comments made from 4 advisors on this training program: Boards often don ’t understand their job and the business of what we are doing - they don’t know what questions to ask. (A. Hains) Boards can get so personality-driven - great governance creates a more balanced Board. (A Hains) Conflict of interest can be a huge problem. (Trainer to share story of Board hiring a PM from the Board!) Further, Boards don ’t know what they don’t know. They need to think about what they can contribute and how they can get community back into community housing (Shelly U) Small organizations rely too heavily on the PM and rarely undertake broad strategic planning while in mid to large organizations, Boards micromanage. Many are so insular that they don ’t think of long term viability. (Arlene Rawson) There is often a lack of consistent supervision and process (P. Bell) These factors - and more - have a direct impact on our jobs and our programs and impact in the community. Great governance - while it takes work, time and resources - ultimately, it makes our jobs easier and more effective.
  • Supporting Great Governance Day 1 of 2 Suzanne to ask: why is great governance important to you personally? To begin to get participants to articulate the benefits of mobilizing a great Board in their own organizations - so they can answer: “What’s in it for me?” Suzanne to report on comments made from 4 advisors on this training program: Boards often don ’t understand their job and the business of what we are doing - they don’t know what questions to ask. (A. Hains) Boards can get so personality-driven - great governance creates a more balanced Board. (A Hains) Conflict of interest can be a huge problem. (Trainer to share story of Board hiring a PM from the Board!) Further, Boards don ’t know what they don’t know. They need to think about what they can contribute and how they can get community back into community housing (Shelly U) Small organizations rely too heavily on the PM and rarely undertake broad strategic planning while in mid to large organizations, Boards micromanage. Many are so insular that they don ’t think of long term viability. (Arlene Rawson) There is often a lack of consistent supervision and process (P. Bell) These factors - and more - have a direct impact on our jobs and our programs and impact in the community. Great governance - while it takes work, time and resources - ultimately, it makes our jobs easier and more effective.
  • Supporting Great Governance Day 1 of 2 Trainer to review these broadly and swiftly - detail has been provided to demonstrate the complexity of our world and realities - and to demonstrate the diversity of issues affecting us and our Boards. A number of these issues will have already been identified by the groups from the previous slide and exercise.
  • Supporting Great Governance Day 1 of 2 Suzanne to ask: why is great governance important to you personally? To begin to get participants to articulate the benefits of mobilizing a great Board in their own organizations - so they can answer: “What’s in it for me?” Suzanne to report on comments made from 4 advisors on this training program: Boards often don ’t understand their job and the business of what we are doing - they don’t know what questions to ask. (A. Hains) Boards can get so personality-driven - great governance creates a more balanced Board. (A Hains) Conflict of interest can be a huge problem. (Trainer to share story of Board hiring a PM from the Board!) Further, Boards don ’t know what they don’t know. They need to think about what they can contribute and how they can get community back into community housing (Shelly U) Small organizations rely too heavily on the PM and rarely undertake broad strategic planning while in mid to large organizations, Boards micromanage. Many are so insular that they don ’t think of long term viability. (Arlene Rawson) There is often a lack of consistent supervision and process (P. Bell) These factors - and more - have a direct impact on our jobs and our programs and impact in the community. Great governance - while it takes work, time and resources - ultimately, it makes our jobs easier and more effective.
  • Supporting Great Governance Day 1 of 2 Suzanne to ask: why is great governance important to you personally? To begin to get participants to articulate the benefits of mobilizing a great Board in their own organizations - so they can answer: “What’s in it for me?” Suzanne to report on comments made from 4 advisors on this training program: Boards often don ’t understand their job and the business of what we are doing - they don’t know what questions to ask. (A. Hains) Boards can get so personality-driven - great governance creates a more balanced Board. (A Hains) Conflict of interest can be a huge problem. (Trainer to share story of Board hiring a PM from the Board!) Further, Boards don ’t know what they don’t know. They need to think about what they can contribute and how they can get community back into community housing (Shelly U) Small organizations rely too heavily on the PM and rarely undertake broad strategic planning while in mid to large organizations, Boards micromanage. Many are so insular that they don ’t think of long term viability. (Arlene Rawson) There is often a lack of consistent supervision and process (P. Bell) These factors - and more - have a direct impact on our jobs and our programs and impact in the community. Great governance - while it takes work, time and resources - ultimately, it makes our jobs easier and more effective.
  • Supporting Great Governance Day 1 of 2 Suzanne to ask: why is great governance important to you personally? To begin to get participants to articulate the benefits of mobilizing a great Board in their own organizations - so they can answer: “What’s in it for me?” Suzanne to report on comments made from 4 advisors on this training program: Boards often don ’t understand their job and the business of what we are doing - they don’t know what questions to ask. (A. Hains) Boards can get so personality-driven - great governance creates a more balanced Board. (A Hains) Conflict of interest can be a huge problem. (Trainer to share story of Board hiring a PM from the Board!) Further, Boards don ’t know what they don’t know. They need to think about what they can contribute and how they can get community back into community housing (Shelly U) Small organizations rely too heavily on the PM and rarely undertake broad strategic planning while in mid to large organizations, Boards micromanage. Many are so insular that they don ’t think of long term viability. (Arlene Rawson) There is often a lack of consistent supervision and process (P. Bell) These factors - and more - have a direct impact on our jobs and our programs and impact in the community. Great governance - while it takes work, time and resources - ultimately, it makes our jobs easier and more effective.
  • Supporting Great Governance Day 1 of 2 Trainer to review these broadly and swiftly - detail has been provided to demonstrate the complexity of our world and realities - and to demonstrate the diversity of issues affecting us and our Boards. A number of these issues will have already been identified by the groups from the previous slide and exercise.
  • Supporting Great Governance Day 1 of 2 Trainer to review these broadly and swiftly - detail has been provided to demonstrate the complexity of our world and realities - and to demonstrate the diversity of issues affecting us and our Boards. A number of these issues will have already been identified by the groups from the previous slide and exercise.
  • Supporting Great Governance Day 1 of 2 Trainer to review these broadly and swiftly - detail has been provided to demonstrate the complexity of our world and realities - and to demonstrate the diversity of issues affecting us and our Boards. A number of these issues will have already been identified by the groups from the previous slide and exercise.
  • Supporting Great Governance Day 1 of 2 Trainer to review these broadly and swiftly - detail has been provided to demonstrate the complexity of our world and realities - and to demonstrate the diversity of issues affecting us and our Boards. A number of these issues will have already been identified by the groups from the previous slide and exercise.
  • Supporting Great Governance Day 1 of 2 Trainer to review these broadly and swiftly - detail has been provided to demonstrate the complexity of our world and realities - and to demonstrate the diversity of issues affecting us and our Boards. A number of these issues will have already been identified by the groups from the previous slide and exercise.
  • Supporting Great Governance Day 1 of 2 Focused questions for the broad group. Signs of high functioning Boards to be noted on one flip chart. Signs of dysfunction or ineffectual governance to be noted on another. Both to be posted on the wall for reference over the 2 days. 10:30 am break here after slide is done
  • Supporting Great Governance Day 1 of 2 Focused questions for the broad group. Signs of high functioning Boards to be noted on one flip chart. Signs of dysfunction or ineffectual governance to be noted on another. Both to be posted on the wall for reference over the 2 days. 10:30 am break here after slide is done
  • Supporting Great Governance Day 1 of 2 Focused questions for the broad group. Signs of high functioning Boards to be noted on one flip chart. Signs of dysfunction or ineffectual governance to be noted on another. Both to be posted on the wall for reference over the 2 days. 10:30 am break here after slide is done
  • Supporting Great Governance Day 1 of 2 Focused questions for the broad group. Signs of high functioning Boards to be noted on one flip chart. Signs of dysfunction or ineffectual governance to be noted on another. Both to be posted on the wall for reference over the 2 days. 10:30 am break here after slide is done
  • Supporting Great Governance Day 1 of 2 To keep risk management simple, you can facilitate the Board to answer 3 questions - you can also present reports to the Board that address these 3 areas for their discussion.
  • Supporting Great Governance Day 1 of 2 Trainer to ask for a risk issue that an organization is facing in order to run the group through the 3 questions against the issue. Explain group exercise to be done at tables. This is intended to be a short touchdown - so not a lot of time will be dedicated to it but enough to give the group an idea of how the discussion might flow. If no one identifies a current issue then present: You have aging tenants who have been causing smaller fires in your building. How might these 3 questions help? In debrief, possible strategies include: Sprinkler over bed Move eldery to a higher level of care Tenant education, etc.
  • Supporting Great Governance Day 1 of 2 Focused questions for the broad group. Signs of high functioning Boards to be noted on one flip chart. Signs of dysfunction or ineffectual governance to be noted on another. Both to be posted on the wall for reference over the 2 days. 10:30 am break here after slide is done
  • Supporting Great Governance Day 1 of 2 For organizations that need to go through more elaborate risk management - a committee can be devised to undertake this work. Trainer to share story of Canadian Crossroads International ’s(CCI) Board who embarked on a comprehensive risk management process in 2002/2003. After 9/11, the threat of terrorism along with changes in cross border movement and safety forced CCI to think about what could happen to their overseas volunteers if they were in the wrong place at the wrong time. The Board was also worried about volunteers working in areas where violence or war might erupt. The CCI Board created an ad hoc risk management committee (which included a Board member with corporate risk management experience) and delved deeply into comprehensive risk management assessment and planning. Trainer to also share the risk management chart that the Board committee devised so the participants can see how intensively the process was undertaken.
  • Supporting Great Governance Day 1 of 2 For organizations that need to go through more elaborate risk management - a committee can be devised to undertake this work. Trainer to share story of Canadian Crossroads International ’s(CCI) Board who embarked on a comprehensive risk management process in 2002/2003. After 9/11, the threat of terrorism along with changes in cross border movement and safety forced CCI to think about what could happen to their overseas volunteers if they were in the wrong place at the wrong time. The Board was also worried about volunteers working in areas where violence or war might erupt. The CCI Board created an ad hoc risk management committee (which included a Board member with corporate risk management experience) and delved deeply into comprehensive risk management assessment and planning. Trainer to also share the risk management chart that the Board committee devised so the participants can see how intensively the process was undertaken.
  • It is not good for Boards be frequently tabling decisions to the next meeting, referring matters back to committees, or avoiding decisions…important to have a decision making model - you can ask the Chair or Governance Committee to address this at your first or 2nd meeting after the AGM - as part of a code of conduct discussion. Shelley D. says Boards don ’t know what they don’t know - they don’t know what info. they need - so we need to help with this. We need to provide a clean and clear process around information sharing and problem solving. Shelley says’ “The best way to support good governance is to act as a professional yourself. See yourself as a leader. Angie Hains says: Boards don ’t always know the questions they need to ask - they don’t know how to frame a problem. We need to play a key role into his area. She says Boards need to agree to their decision making process in advance. To understand an issue: need to take time to articulate the problem--to allow for time to ask questions--make sure the President has tabled enough time. Send information and options out in advance of a meeting. Committees are useful for doing research. You as the ED can shape how information is framed and presented. To examine the problem, groups make better decisions if they have choices in front of them--it is best to generate options before hand. You can also brainstorm, and set up smaller discussion groups to identify alternatives. It is also important to consider implications and consequences. EDs and PMs who present scenarios and options and their best recommendations - to begin to frame issues and provide Boards with a baseline from which to discuss options, approaches, decisions and their implications. Support the Board in its decision making by being transparent and clear with its information process. Consensus Building--less formal than voting and allows a decision to encompass the views of all the Board members. This process generates a wider range of ideas and options. Discussion centres around finding the best approach. The question is reframed several times and various options are developed. People have to be willing to offer honest opinions and new ideas and be willing to change opinions and listen. Pure consensus: decision is not finalized until all members agree to it. Active opposition blocks a decision. To pass a decision, board members agree to let a motion stand so it does not always have strong support. General Consensus: If majority of the board supports a decision then it carries. Concerns and reservations of non-supporting board members may be noted. Decision by majority rule? Formal motion is presented and a vote is taken on the motion. How the motion is framed shapes the scope of the discussion and can narrow options. A motion reduces the options to one and limits the response to yes or no. So the process of framing the question and options is as important as the vote itself. Best not to propose motions to early in the discussion--need to look at a problem broadly. You may want to meet with the Executive to frame possible motions. You need to make sure the decision is documented (with the Secretary) and that there is a strategy to communicate it to key stakeholders - as appropriate. You can also bring the decision up at a later date to ask the Board to evaluate it - if it is not working well or if there ’s something to learn from it.
  • Supporting Great Governance Day 1 of 1 4:55 pm Trainer to secure a takeaway from each participant and flip chart results to see where the content has had resonance with the group. Trainer to remind folks to fill out the evaluation forms and to then close with a big thank you and reference to the fact that we have an expert with a final message for us all.

A2 risk management oct 23 suzzane gibson Presentation Transcript

  • 1. Risk Assessment and Management 2012 OCASI Executive Directors Forum October 23, 2012 Westin Prince Hotel Presented by Suzanne Gibson
  • 2. WelcomeA MIND SNACK:“Risk management is probably one of the most important things anorganization does. And when you think about risk, you think aboutfinancial. Risk can actually impact on almost every part of theorganization. So risk management is actually the identification ofthreats to an organization, analyzing those threats for significance,and then either eliminating that risk, transferring it, mitigating it ordeciding to go forward even though the risk exists.” Carl Henderson, Housing ExpertRisk Assessment and Management 2
  • 3. Introductions  Your name and organization  One thing you know about risk management Risk Assessment and Management 3
  • 4. Session Goals1. To define what risk management is and explore the different categories of risk within non-profit and charitable organizations.2. To discuss approaches to managing risks and devising strategies to respond to them.3. To review a medley of tools and resources to support Board and staff related risk management work.4. To uncover and provide very practical solutions, suggestions and approaches that will help your organization to be more alert and responsive to risk.5. To devise next step actions that result in your organization integrating risk management into its ongoing work. Risk Assessment and Management 4
  • 5. Session Guidelines 1. Always open for questions. 2. No question or idea is stupid - divergent ideas snap us open! 3. Let’s engage everyone. 4. Respect the speaker. 5. Let’s have fun and stay open to sharing and to each other’s experience! 6. Let’s test and share our assumptions. 7. Let’s not dispose but rather propose. 8. Let’s note points of confidentiality. 9. Other(s)Risk Assessment and Management 5
  • 6. What is Risk?Governance is defined as “the overall processes and structuresused to direct and manage an organization’s operations andactivities.” Canada’s Panel on Accountability and Governance in the Voluntary Sector Ultimately, we are accountable to the public.Risk is anything that threatens the ability of your organization toaccomplish its mission and preserve its reputation. It is measuredin terms of consequences and likelihood. Risk Assessment and Management 6
  • 7. Risk is anything that threatens the ability of yourRisks organization to accomplish its mission and preserve its reputation. It is measured in terms of consequences and likelihood.Our work has become increasingly complex andthe possibility of litigation is greater than ever.There are 2 ways organizations encounter risk:  Risks affecting the organization  Risks directly affecting Board membersRisk Assessment and Management 7
  • 8. Risk Management Risk management includes the culture, processes, and structures that are directed towards the effective management of potential opportunities and adverse effects. Do you have processes and structures in place? What is your culture like with respect to risk?Risk Assessment and Management 8
  • 9. Why Risk Management? The Downside Under liability legislation, the organization and/or individual directors may be held responsible for payment of damages if reasonable precautions are not taken to protect clients, staff and the general public from harm. The UpsideRisk management With effective risk management, you can takeresults inorganizations calculated risks to create, build and establishproactively and opportunities for your organization, clients andmindfully taking tenants. You can be generative and dynamic andadvantage of know that you are assessing risk mindfully and withopportunities that due diligence. Opportunists love riskarise management! Risk Assessment and Management 9
  • 10. Why Risk Management?Fast-paced rapidly changing context Constantly changing environment with shifting legislation and challenges related to compliance A diverse population with high priority clients - with more complex needs New legislation, technologies and research - information overload! Changes and shifts in the funding environment (increased focus on risk management, greater transparency/accountability, etc.) Increased alliances and partnerships Increased focus on effective governance and management Others? Risk Assessment and Management 10
  • 11. Complexity Theory: Thoughts to Ponder • Simple: baking a cake - few moving parts that follow a predictable trajectory • Complicated: sending a rocket to the moon - many moving parts that follow several predictable trajectories • Complex: raising a child - many moving parts that have no predictable trajectories Getting to Maybe, F. WestleyRisk Assessment and Management 11
  • 12. Risk Management Defining risk tolerance and managing risks can assist an organization in meetings its objectives and thriving. Risk management usually involves everyone including the Board, Executive Director, staff and volunteers. Many activities involve risk management including drafting policies/procedures, setting service goals, and financial and other reporting.Risk Assessment and Management 12
  • 13. Board’s Role in Risk Management The Board usually has overall responsibility for risk management and it delegates through policy and approval to the Executive Director and staff most of the detailed aspects of identifying, assessing and managing the risks that the organization faces.Risk Assessment and Management 13
  • 14. Board’s Role in Risk Management The nature of the Board’s involvement in risk management will vary based on the size and scope of the organization and its staff: In larger organizations, Directors can rely on staff to manage day-to-day risks and the Board is involved in policy approval, strategies and major decisions. In smaller organizations where staff may have less experience or skill, the Board may be more hands-on. Which type of organization are you?Risk Assessment and Management 14
  • 15. What Are Major Risks YourOrganization May Encounter?Risk Assessment and Management 15
  • 16. What Are Major Risks? Loss of funding Fraud Natural disasters Inadequate response to an emergency Loss or theft of information Personal injury Abuse Asset management/Property maintenance Excessive increases in the cost of human or other resources Volunteer or employee misconduct Others?Risk Assessment and Management 16
  • 17. Types of Risk Risks are interrelated and evolve into different categories. Categories of risk can include: (i) Financial: The risk of fraud, financial failure and decisions based on inadequate or inaccurate information: Proper accounting, Limits, Fraud, Financial Challenges, Funding, Investments, Taxation, Insurance, etc. (ii) Operational Risk: The risk of loss or impeded service/program delivery resulting from inadequate or failed processes, people or systems, or from external events: Real Estate, Physical Premises, Programs and Services,Technology/Information Technology, Human Resources, Branding, Media and National Relationships, Crisis Management/Business Continuity/Contingency Planning, etc.Risk Assessment and Management 17
  • 18. Types of Risk Categories of risk can include: (iii) Legal/Regulatory/Compliance: The risk of adverse outcomes due to non-compliance to laws, rules, regulations, obligatory practices, standards or other legal requirements: Applicable Legislation, Litigation, Key Legal Documents, Government Relations, etc. (iv) Strategic:The risk arising from improper or ineffective strategies or lack of responsiveness to changes in the environment: Strategic Plan, Strategic Partnerships, etc.Risk Assessment and Management 18
  • 19. Types of Risk Categories of risk can include: (v) Governance: The risk of ineffective oversight and poor decision-making: Lines of Authority, Board Operations, Policies and Procedures, Information/Reporting to Board, etc. (vi) Reputational Risk: The risk that negative stakeholder impressions regarding the organization’s practices, actions or inactions may cause a decline in the organization’s programs and services, ability to raise funds, brand and/or goodwill in the community. Check out ONPHA’s Governance AuditRisk Assessment and Management 19
  • 20. Managing Risk • Active process of identifying and assessing risks and developing responsive action plans to manage risk factors • Generally, Board undertakes strategic review while staff manage and assess operational implications and legislated limitations • Need to devise a risk management strategy - start by defining the amount of risk a Board is prepared to take Capacity to take risk depends on both insurance and financial reserves. Risk Assessment and Management 20
  • 21. Risk Assessment • Promote a discussion around the risks facing your organization and identify top risks that require action • Assist the board in understanding the risk strengths and weaknesses of the organization • Assist in setting overall priorities, work effort and overall risk tolerance. Risk Assessment and Management 21
  • 22. Risk Assessment Risk Scale  High Impact, High Likelihood – Immediate Action required and extensive control activity essential.  High Impact, Low Likelihood – Manage and monitor, consider contingency planning  Low Impact, High Likelihood – Management effort worthwhile  Low Impact, Low Likelihood – Accept but monitor Key questions to ask when assessing risks: 1. Could this risk affect the organization’s ability to meet its objectives 2. How likely is the risk to occur? 3. How serious might it be? 4. Should or can something be done to reduce the risk? 5. How can we be prepared to respond to problems. Risk Assessment and Management 22
  • 23. Risk Management • Establish a risk register to track significant organizational risks (in addition to the top 5) that require attention over time. • Develop action plans to address the risk. • Management options include: • Avoiding/eliminating risk (remove unsafe equipment) • Transferring risk (hire a contractor with insurance for a service) • Mitigating risk (develop policies and procedures to reduce exposure) • Accepting risk (include funds in the budget as a contingency) The process can be moreRisk Assessment and Management complex or more simple. 23
  • 24. Risk Management 3 Simple Questions to Facilitate a Discussion 1. What could go wrong? 2. What will we do to prevent it from going wrong? 3. What will we do if it does go wrong? Can we afford it? Document all discussion points.Risk Assessment and Management 24
  • 25. Risk Management Taking the Questions Through a Scenario Choose a potential risk currently arising within your organization. Share the details and then run through the questions. 3 Simple Questions to Facilitate a Discussion 1. What could go wrong? 2. What will we do to prevent it from going wrong? 3. What will we do if it does go wrong? Can we afford it?Risk Assessment and Management 25
  • 26. Risk Management You may want to establish and conduct an annual risk assessment process, aimed at identifying the top 3-5 risks to the organizations and establishing associated action plans if required. •Half day training and discussion •Discuss whether it is possible and advisable to strike a working committee of the Board with the Executive Director to review and work through a risk management process. Risk Assessment and Management 26
  • 27. A More Formal Approach to R Management iskDevise a risk management committee to develop astrategy:• define risk management objectives• develop a list of conceivable risks• measure the likelihood of each risk and levels of acceptable risk• focus efforts on risks with high likelihood and impact• develop a mitigation strategy and a prevention strategy for each risk - consider key capacity/resource issues• step back to determine risk response work (compare costs with benefits of potential responses)• establish financial controls and response protocols including information and communication• monitor your risk management work for enhancementsRisk Assessment and Management 27
  • 28. R Processes isk • Internal Processes - interviews, surveys, brainstorming, discussions • External Review - comparisons with others, peer sharing, benchmarking, case studies, promising practices, etc. • Expert Assistance - risk consultants, audits, facilitated workshops and trainings, etc.Risk Assessment and Management 28
  • 29. Risk Management Tools: • This Risk Management Toolkit including the Governance Audit • Chartered Accountants of Canada: 20 QuestionsRisk Assessment and Management 29
  • 30. Problem SolvingDecision Making1. need to understand and define the issue/problem.2. examination of problem: research, brainstorm, seek input, have discussions, assess risk, etc.3. determine the outcome you want to achieve.4. generate possible solutions - analyze the options and pros and cons.5. use a committee to explore the issue and provide recommendations.6. make the decision.  consensus building  decision by majority rule7. document and implement the decision: consider what resources and who will do what, when. Address any risk issues with strategies.8. communicate it to all key stakeholders.9. evaluate the decision: learn from the decision process and the quality of decisions made. Another decision may be needed to solve a problem that is not being addressed How do you make decisions that mitigate risks?Risk Assessment and Management 30
  • 31. Risk ManagementQueryWhat action(s) will you take forward as a result of thissession? Risk Assessment and Management 31
  • 32. Risk Management - In Closing “I think sometimes we have a habit of not wanting to share bad news and often we see risk as a bad news story and we’re responsible. I look at it a little differently. I think if we don’t talk about risk then we could fall into a huge trap and open our organization and our residents up for more risk. So for me, it’s exciting when we can talk about it and figure out how to address it. So bring it forward, talk about it. You are going to feel much more confident.” Patti Bell, Executive Director, Blue Door Shelters Thank you for participating. Risk Assessment and Management 32