Risk Management 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 4 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 organization awareness needs to be enhanced. The awareness level on campus has been raised through the Risk Management Steering Committee 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 Risk Management Steering Committee is the appropriate conduit for the development of a risk register for executive approval and reporting to the Board.

3) Strategies/Tools

There are 4 approaches to take when dealing with risk: avoid, transfer, mitigate or accept.

The University of Victoria has developed a comprehensive risk management programs that either transfer or mitigate risk when the risk is accepted or can not be avoided. These include:

• Internal control systems;
• Emergency planning;
• Insurance;
• Occupational Health and Safety Programs; and
• Business continuity planning.

4) Monitoring & Reporting

The University already has a comprehensive reporting program, and therefore accountability, in place that includes:

• 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 assessment, performance assessment)
• Financial Planning & 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.

See appendix I attached which diagrams the above UVic Risk Management Framework. Click APPENDIX I to view.