Risk framework
Risk management framework
A risk management framework is the overarching protocol or structure within which an organization oversees and manages risk to help ensure the fulfillment of its strategic objectives. It is a proactive approach to identification, assessment, mitigation and reporting.
There are four components to the University of Victoria's risk management framework. They are: culture/philosophy; structure; strategies/tools; and monitoring and reporting.
1) Culture/Philosophy
In order for risk management to be successful, there must be knowledge and support of the program at the executive level and organizational awareness. As well, the organization must have policies that are aligned with its strategic objectives to help guide the institution in defining its risk appetite.
The university has strong executive support for the program; however, organizational awareness needs to be enhanced. The awareness level on campus has been raised through the Risk Management Steering Committee (RMSC) and will be further enhanced through campus consultation in the development and updating of a university risk register.
2) Structure
The structure is the process to be used to identify, assess and report on university risks. At the University of Victoria, the RMSC is the appropriate conduit for the development of a risk register for executive approval and reporting to the Board of Governors.
3) Strategies/Tools
There are four approaches to take when dealing with risk: avoid, transfer, mitigate or accept.
The University of Victoria has developed comprehensive risk management programs that either transfer or mitigate risk when the risk is accepted or cannot be avoided. These include:
- internal control systems;
- emergency planning;
- insurance;
- occupational health and safety programs; and
- business continuity planning.
4) Monitoring and Reporting
The university already has a comprehensive reporting program, and therefore accountability, in place, including:
- Strategic (A Vision to the Future, Research Plan, Service Plan);
- Academic Program and Support (multi-year enrolment, access and affordability, information technology);
- Performance (academic program reviews, research reports, teaching assessments, performance assessments);
- Financial planning and reporting (student financial assistance, budget, financial statements, 5 year Capital Plan); and
- Governance (Board, Senate).
This program will be further enhanced with regular reporting of top university risks.