“A risk tamed is a reward captured.” ~ Michael Platt, CEO & Founder BlueCrest Capital Management Limited

Annual Report •

September 2008

www.maricopa.edu/mira

Bellwether Award Finalist

District Governing Board

Maricopa Community Colleges – 2411 W. 14th Street, Tempe, AZ 85281

District Administration

College & Education Center Administration

Maria L. Hesse, PresidentChandler-Gilbert Community College 2626 East Pecos RoadChandler, AZ 85225480.732.7000

Ernie Lara, PresidentEstrella Mountain Community College3000 North Dysart RoadAvondale, AZ 85392623.935.8000

Eugene Giovannini, PresidentGateWay Community College108 North 40th StreetPhoenix, AZ 85034602.286.8000

Velvie Green, President Glendale Community College6000 West Olive AvenueGlendale, AZ 85302623.845.3000

Shouan Pan, PresidentMesa Community College1833 West Southern AvenueMesa, AZ 85202480.461.7000

Paul Dale, Interim PresidentParadise Valley Community College18401 North 32nd StreetPhoenix, AZ 85032602.787.6500

Anna Solley, PresidentPhoenix College1202 West Thomas RoadPhoenix, AZ 85013602.285-7500

Jan Gehler, PresidentScottsdale Community College9000 East Chaparral RoadScottsdale, AZ 85256-2626480.423.6000

Kenneth Atwater, PresidentSouth Mountain Community College7050 South 24th StreetPhoenix, AZ 85042602.243.8000

Linda Thor, PresidentRio Salado College2323 West 14th StreetTempe, AZ 85281480.517.8000

John E. Underwood, DirectorMaricopa Skill Center1245 East Buckeye RoadPhoenix, AZ 85034602.238.4102

Adolfo Gámez, DirectorSouthWest Skill Center3000 North Dysart RoadAvondale, AZ 85392623.535.2700

Dr. Donald R. Campbell, PresidentMs. Colleen Clark, SecretaryMrs. Linda B. Rosenthal, MemberMr. Scott Crowley, MemberMr. Jerry D. Walker, Member

Rufus Glasper, ChancellorMaria Harper-Marinick, Vice Chancellor, Academic & Student AffairsDebra Thompson, Vice Chancellor, Business ServicesAlbert A. Crusoe, Vice Chancellor, Human ResourcesSteven Helfgot, Vice Chancellor, Resource Development & Community RelationsDarrel Huish, Vice Chancellor, Information Technologies

Vision – A Community of Colleges...Colleges for the Community...working collectively and responsibly to meet the life-long learning needs of our diverse students and communities.

MCCCD Vision, Mission & Values

Community – We value all people – our students, our employees, their families, and the communities in which they live and work. We value our global community of which we are an integral part.

Excellence – We value excellence and encourage our internal and external communities to strive for their academic, professional and personal best.

Honesty and Integrity – We value academic and personal honesty and integrity and believe these elements are essential in our learning environment. We strive to treat each other with respect, civility and fairness.

Inclusiveness – We value inclusiveness and respect for one another. We believe that team work is critical, that each team member is important and we depend on each other to accomplish our mission.

Innovation – We value and embrace an innovative and risk-taking approach so that we remain at the forefront of global educational excellence.

Learning – We value life-long learning opportunities that respond to the needs of our communities and are accessible, affordable, and of the highest quality. We encourage dialogue and the freedom to have an open exchange of ideas for the common good.

Responsibility – We value responsibility and believe that we are each accountable for our personal and professional actions. We are responsible for making our learning experiences significant and meaningful.

Stewardship – We value stewardship and honor the trust placed in us by the community. We are accountable to our communities for the efficient and effective use of resources as we prepare our students for their role as productive world citizens.

Statement of Values – The Maricopa Community Colleges are committed to:

Mission – The Maricopa Community Colleges provide access to higher education for diverse students and commuities. We focus on learning through: University Transfer Education, General Education, Developmental Education, Workforce Development, Student Development Services, Continuing Education, Community Education, Civic Responsibility, Global Engagement.

September 30, 2008

On behalf of the MIRA Committee, I am honored to present the 2008 Maricopa Integrated Risk Assessment (MIRA) Annual Report. This report marks the fifth annual report, and the MIRA Committee continues to work towards its goal of embedding risk management into the Maricopa County Community College District’s operations. This annual report summarizes this past year’s achievements and outlines our goals for the next year.

In these uncertain times of economic challenges, MCCCD must continue to apply the tools and techniques for handling traditional risks to address all risks that affect the strategic and financial objectives of our organization. By applying the principles of enterprise risk management, MIRA will continue to provide our institution with a comprehensive overview of the risks and opportunities that we face. Risk management cannot be considered an optional process; it must become an integral part of MCCCD’s management process now and in the future.

If you have any comments or questions related to MIRA, please contact any member of the MIRA committee or me.

Sincerely,

Ruth A. Unks, ARMMaricopa County Community College DistrictRisk Manager

Committee Members & Alternates – September 2008

Name/Title Location Functional Responsibility

Unks, Ruth - Chair – MCCCD Risk Manager DO Risk ManagementBryant, Michael – Learning Facilitator DO EOLTChiara, Susan – Administrative Assistant DO Risk ManagementAlt: Corich, Steve – Director, Public Safety MCC Public SafetyCouch, Carl – Vice President, Administrative Services SCC Administrative ServicesAlt: Dale, Paul – Interim President, PVCC PVCC CECDutson, Lyn – Director of Theatre MCC FacultyAlt: Faulkner, Sherrie – Manager, Employee & Organizational Development DO EOLTGilbert, Rory– Manager, Diversity Initiatives DO DiversityGranio, Kim – Director, Financial Services & Controller DO Business ServicesGuerriero, William – Vice President, Academic Affairs CGCC Academic AffairsGunkel, Diane – Property Control Assistant MCC Property ControlAlt: Gutierrez, Lupe – Senior Manager, Human Resources DO Employment/Employee RelationsHaar, Lisa - Marketing Coordinator DO MarketingHall, Christine – District Director, EEO + AA Recruitment DO EEO + AA RecruitmentAlt: Jacobs, Dee – Principal Auditor DO Business ServicesKelty, Edward – Vice President, Information Technology RIO Information TechnologyKemp, Rick – Associate Dean RIO InstructionKushibab, Pete – General Counsel DO Legal ServicesAlt: Marmon, Rich – Director, Information Technology EMCC Information TechnologyAlt: McConnell, Maggie – Assistant General Counsel DO Legal ServicesMeland, Sarah – Risk Analyst DO Risk ManagementAlt: Silber, Donna – Coordinator, Institutional Effectiveness DO Institutional EffectivenessAlt: Simmons, Todd – Vice President, Administrative Services RIO Administrative ServicesSolochek, Arlen – District Director, Facilities Planning & Development DO Facilities Planning & DevelopmentSummers, Charles – Director, Public Safety EMCC Public SafetyThor, Linda – President, Rio Salado RIO CEC

Executive Summary 1

Outcomes 2

Progress to Date 3

2008 – 2009 Goals 5

Goals/Status 6

Risk Register/Best Practices 12

Risk Treatment Update 14

Training Opportunities 16

Statistics 16

Charge 17

Risk Environment, Culture & Appetite Description 18

Administrative Regulation 19

SMART Tool 20

Conclusion 21

Going Forward 21

Table of Contents

Executive Summary

This is the fifth annual report that the Maricopa Integrated Risk Assessment (MIRA) committee has written. It is a report on the committee’s progress as well as its specific goals for the coming year.

In these uncertain times of economic challenges, it is important to apply the principles of enterprise risk management and to continually evaluate the risks and opportunities that we face. Risk management must become an integral part of MCCCD’s management process now and in the future.

The MIRA committee continues to work on the general and specific outcomes that Dr. Rufus Glasper, chancellor of the Maricopa County Community College District, has assigned to them. Significant accomplishments of the committee for 2007-2008 include the creation of several College Risk Assessment Facilitation Teams (CRAFTs), identification of new risks, risk assessment tools training, successful mitigation of several risks/best practices, and recognition of the MIRA project through presentations at national and regional conferences.

Key initiatives for 2008-2009 include the identification and assessment of new risks, formation of additional CRAFTs, and refreshing the implementation plan.

1

What is MIRA?

The Maricopa Integrated Risk Assessment (MIRA) project embraces a wider view of risk called Enterprise Risk Management (ERM), which enables personnel to collaboratively identify, assess, and manage future risks and opportunities. This is done individually as well as across the organization. The Maricopa County Community College District (MCCCD) Governing Board officially approved MIRA in March 2000. On October 27, 2003, Dr. Rufus Glasper, MCCCD Chancellor, assigned responsibility for MIRA to Ruth Unks.

Outcomes

Chancellor Glasper’s Specific Outcomes

• Develop and initiate a multi-year Maricopa ERM risk assessment implementation plan by November 30, 2003 with specific time frames, activities, participants, and outcomes.• The implementation plan will result in demonstrable progress in calculating risk assessment (and mitigation) in processes of our councils and behavior and attitudes of all faculty and staff in all areas of operation academic, services, administration, management—with the result of achieving the outcomes in the first bullet under general outcomes.• Demonstrable outcomes are expected in the first year of implementation, and all years.• The implementation plan will include an annual report to CEC that compares planned and actual outcomes. The report will be submitted by August 31 of each fiscal year.

Chancellor Glasper’s General Outcomes

• Increased overall effectiveness and accountability• Sound business processes; greater assurance of business continuity• Demonstrated compliance with applicable laws and regulations• Enhanced employee empowerment and pride• Reinforcement of the strong Maricopa cultural identity• Enhanced competitive advantage

Emphasis will be placed on Maricopa’s control environment, particularly “tone at the top,” which is predicated on ethical values, integrity and competence of chief executives, managers, and board members alike.

A Maricopa risk assessment plan will establish a philosophy of fostering continued evaluation of effectiveness and efficiency of organizational leadership, systems, and strategies. Ultimately, accountability for resources—human, financial, intellectual, physical and technical—will be impacted at every level at Maricopa.

Implementation Plan: To view the implementation plan visit www.maricopa.edu/mira

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1999Dr. Glasper created task force.• Conducted high-level risk • assessment and identified 80 risks.

2000Prioritized general and critical • risks.Governing Board approved • initiative.Launched MCCCD ethics initiative. •

2002Update given to MCCCD leaders.•

2003

Established Risk Management • Advisory Committee (RMAC) to assist risk manager in advancing traditional risk management program.Established MIRA Committee; first • meetings held.Chancellor merged MIRA • Committee and RMAC to maintain continuity in the discussions of risk management. Chancellor appointed District Risk Manager to staff and implement MIRA project.Chancellor approved MIRA • implementation plan.

2004Committee members adopted • MIRA charge.Committee received facilitated • training on ERM concepts.

Committee adopted Risk • Environment, Culture, and Appetite Description.Ad hoc committee began risk • mapping.Presented Risk Register to • committee.Sub-committees presented risk • assessment tools and glossary to committee for review.Marketing/Communications sub-• committee agreed on website design and proceeded with website content.Article on MIRA published in Legal • Services In Brief newsletter.Ruth Unks presented and • discussed MIRA at Governing Board Strategic Conversation. Ruth Unks and Scott Geddis presented 2004 Annual Report to CEC. CEC reaffirmed support of MIRA project.Committee members adopted • the tag line “MIRA: A New Way of Looking at Risk” for use on all MIRA written materials.Ad hoc sub-committee pared • down the original 80 identified risks to 27.Sub-committee developed • simple risk-assessment tool for all employees to utilize and a secondary Excel tool called RATE (Risk Assessment Tool/Excel) for those risks that merit more detailed analysis.

2005Committee approved common risk • language (glossary subsequently posted on the MIRA website), reaffirmed charge, and Drs. Kickels and Thor joined committee as CEC representatives.Website went “live.” (• www.maricopa.edu/mira)Second training workshop • conducted on ERM for committee.MIRA article printed in the Winter • 2005 issue of In Brief.Committee members turned the • 27 previously identified risks into Best Practices statements.Committee fine-tuned MIRA’s • administrative regulation language.Marketing sub-committee • introduced program geared to direct employees to the MIRA website and training sessions.Vice Chancellor Debra Thompson • agreed to sponsor the MIRA administrative regulation. Ruth Unks presented “Risk • Assessment for Supervisors, a three-hour training course at Phoenix College.MIRA overview presented to • Faculty Executive Council.MIRA postcards sent to all • employees.MIRA tutorial and quiz launched.• Ruth Unks and Lyn Dutson • presented 2005 Annual Report to CEC. CEC reaffirmed support of MIRA project.

Ruth Unks and Michael Bryant • (EOLT) presented “Risk Assessment for Supervisors,” a three-hour training course at Paradise Valley Community College.Risk categorization completed.• “RATE” piloted at Glendale • Community College for proposed burn tower.Ruth Unks and Michael Bryant • presented “Risk Assessment for Supervisors,” at Scottsdale Community College.

2006 Third training workshop • conducted on ERM for MIRA Committee by Dorothy Gjerdrum.Workshop for MIRA Committee; • selected and placed top risks on risk map.Administrative Regulation draft • finalized.Ruth Unks and Michael Bryant • presented “Risk Assessment for Supervisors,” at District Office.Ruth Unks and Michael Bryant • presented “Risk Assessment for Supervisors,” at Estrella Mountain Community College.Ruth Unks presented 2006 • Annual Report to CEC. CEC reaffirmed support of MIRA project.

Progress to Date

3

•

International and Continental Airlines.“Risk Assessment Tools” • presented at District Office.Ruth Unks presented “ERM • Fundamentals” at the URMIA Western Regional Conference in Bozeman, Montana and the Colorado PRIMA Conference in Keystone, Colorado.Ruth Unks presented “ERM • Fundamentals” and “Reputation Risks” at the PRIMA Conference in Anaheim, California.CRAFT formed at Phoenix • College.Ruth Unks was a lead presenter • at an ERM workshop at Washington State University in Pullman, Washington. This workshop was attended by WSU leadership as well as other Washington higher education risk managers.CRAFT formed at Rio Salado • College.

Special MIRA meeting held that • focused on risk identification. The committee reviewed key MCCCD documents (Vision, Mission, and Values Statements, Governing Board Outcome Statements, Environmental Scans, and Risk Register).“Risk Assessment for • Supervisors” presented at the District Office as part of the Navigate Maricopa Supervisor Development series.

2008 CRAFT formed at Paradise • Valley Community College.Dr. Linda Thor and Ruth Unks • co-presented MIRA at the Community Colleges Futures Assembly in Orlando, Florida.ERM update training session • for MIRA committee members conducted by ERM consultant, Dorothy Gjerdrum.“Risk Assessment Tools” • presented at Chandler-Gilbert Community College. “Risk Assessment Tools” • presented at Scottsdale Community College.Ruth Unks co-presented “ERM • Boot Camp” at the 2008 Risk & Insurance Management Society (RIMS) Conference in San Diego, California. Ruth co-presented the 2.5 hour session with the risk managers from Chiquita

CEC approved Risk Register/Best • Practices and authorized MIRA committee to move forward with risk control efforts.Strategic Maricopa Risk • Assessment Tool (SMART) developed by MIRA Committee. Piloted at Glendale Community College for fine arts program.SMART used at Estrella Mountain • Community College regarding fine arts shows.Committee selected four risks • from the approved Risk Register/Best Practices to focus on controls and risk treatments: 1) government mandated resources, 2) pandemic preparedness planning, 3) effective information systems security procedures, and 4) international study and cross-border initiatives.“Risk Assessment Tools for • Supervisors” training session debuted at the District Office and was co-presented by Ruth Unks and Michael Bryant.SMART used at District Office • regarding South Mountain Community College and Mesa Community College use of facilities at Tempe Union High School District.

2007SMART used at Strategic Planning • Advisory Council.Governing Board adopted the • MIRA administrative regulation.CRAFT established at Mesa • Community College.“Risk Assessment for Supervisors” • course re-designed and shortened; will be incorporated into the “Legal Issues: Public Sector Employment” online course.Special MIRA meeting held. Debra • Thompson gave the committee an update on the Blue Ribbon Panel recommendations. The Risk Register/Best Practices • was reviewed and updated to reflect progress on risk controls.CRAFT established at Scottsdale • Community College.MIRA was the inaugural • recipient of the Innovative Risk Management Solutions Award presented by the University Risk Management and Insurance Association (URMIA).MIRA Annual Report presented to • CEC. CEC reaffirmed support of MIRA project.MIRA Annual Report presented to • Faculty Executive Council.MIRA Annual Report presented to • Administrative Services Council.MIRA project selected as one of • the five Bellwether finalist winners in the Planning, Governance, and Finance category.

Progress to DateProgress to Date

4

2006

Progress to Date

1. Seek annual reaffirmation of CEC’s support.

2. Refresh Implementation Plan.

3. Conduct ERM training for MIRA Committee.

4. Review Committee roster to determine core team.

5. Review sub-committee charges and determine sub-committees continuing roles.

6. Promote MIRA and ERM concepts at employee councils, new employee orientations, and other meetings.

7. Incorporate MIRA strategies into MCCCD’s strategic planning process.

8. Promote the use of current risk assessment tools.

9. Roll-out new risk assessment tools training.

10. Establish CRAFTs at colleges.

11. Conduct risk identification using Resolver Ballot with MIRA Committee and other key employees.

12. Conduct Risk Self Assessment with CEC.

13. Review and provide feedback on traditional risk management initiatives.

14. Measure progress and results of MIRA project.

2008 – 2009 Goals

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Goals/Status, September 2008

1. Project Planning

GOAL ACTIVITIES PARTICIPANTS OUTCOME TIMEFRAME STATUSA Obtain top-level

support, commitment and participation.

Place MIRA project on Governing Board agenda for approval.

Meet with CEC to reaffirm their support.

Governing Board

CECMIRA Chair

Governing Board approved MIRA Project.

CEC reaffirmed support of MIRA Project.

March 28, 2000

July 2003August 2004August 2005September 2006September 2007

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B MIRA Project Leader to be named.

Dr. Glasper to name staff member to be responsible for MIRA Project.

Dr. Glasper Dr. Glasper named Ruth Unks, District Risk Manager, to staff and implement MIRA Project.

October 27, 2003 √

C Create MIRA Committee comprised of representatives from across MCCCD.

MIRA Chair to review MIRA and RMAC membership rosters.

Ensure adequate representation at each MIRA meeting.

Ruth Unks

MIRA Committee

MIRA Committee members selected.

Alternate members chosen.

November 2003January 2005January 2006June 2007January 2008February 2004January 2005February 2006June 2007January 2008

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D Committee needs clear mission and charge.

Draft charge.

Present charge to committee members for comment/approval.

Ruth Unks

MIRA Committee

MIRA charge approved by MIRA Committee.

February 2004January 2005February 2006June 2007February 2008

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E Committee needs facilitated training on ERM concepts.

Facilitated training by ERM consultant for 8 hours.

MIRA Committee & Alternates

Consultant

MIRA Committee members educated on ERM concepts.

February 2004February 2005April 2006February 2008

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Goals/Status, September 2008

2. Evaluate MCCCD’s Environment and Strategy

GOAL ACTIVITIES PARTICIPANTS OUTCOME TIMEFRAME STATUSA Framework for ERM

should begin with the institution’s strategic plan.

MIRA Chair and other committee members will participate in MCCCD’s strategic planning process.

Ruth Unks

MIRA Committee

ERM strategies incorporated into MCCCD’s strategic planning process.

Ongoing Ongoing

B Commitment to managing risks should be stated by CEO that supports the achievement of institutional goals and objectives.

Create Administrative Regulation Sub-Committee.

Draft Administrative Regulation regarding MIRA.

MIRA Committee Committee created.

Administrative Regulation adopted by Governing Board.

January 2005

February 2007

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C Common risk language needs to be developed and customized to the organization.

Create a Common Language Sub-Committee.

Develop and customize risk management language for MCCCD.

MIRA Committee Committee created.

Customized risk management language; developed and published.

February 2004

January 2005

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D Develop description of MCCCD’s environment, culture and risk appetite.

MIRA Committee will evaluate the environmental scanning report, CAFR, strategic plan, and mission and vision statements.

MIRA Committee MCCCD’s Risk Environment, Culture & Appetite determined.

March 2004 - April 2004

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Goals/Status, September 2008

3. Develop a Comprehensive Risk Framework and Process

GOAL ACTIVITIES PARTICIPANTS OUTCOME TIMEFRAME STATUSA Develop overall

portfolio of risks.Phase I: Review, consolidate and group by category significant risks, utilizing matrix of 80 risks. Identify additional risks. Prioritize risks by likelihood, severity, and frequency. Select 10 - 20 risks to mitigate.

Phase II: Identify other risks from matrix, environmental scans, and brainstorming.

Phase III: Identify other risks from matrix, environmental scans, and brainstorming.

MIRA Committee Provide a mechanism to ensure decision makers are addressing the most significant risks.

March 2004 - February 2005

February 2005

February 2006 - September 2006

November 2007

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B Develop risk assessment tools for all employees to utilize.

Research what risk assessment tools currently exist and determine if these tools are suitable for MCCCD employees. May also develop customized risk assessment tools.

Form risk assessment teams at colleges.

MIRA Risk Assessment Sub-Committee

Ruth Unks, VPs ofAdministration

Provide tools to assist employees to identify and assess risks, and develop and implement mitigation strategies.

Colleges assess their own risks.

Ongoing

Pilot project with MCC - June 2007

SCC September 2007PVCC January 2008PC June 2008RSC September 2008

Ongoing

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GOAL ACTIVITIES PARTICIPANTS OUTCOME TIMEFRAME STATUSA Ensure that all

mitigation efforts are coordinated and effective in managing those identified risks to an acceptable level of exposure.

Select appropriate strategies for the risks identified in Phases I and II.

MIRA Committee CEC

Help decision makers strategically manage their risks.

November 2006September 2007

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B Traditional Risk Management Program continues to move forward.

Review and provide feedback on risk management initiatives.

Risk ManagerRisk Management Advisory Sub-Committee

New risk management initiatives are implemented.

Ongoing Ongoing

C Institutionalize the process so that the entire organization becomes involved and takes ownership of the outcomes.

Align MIRA with existing processes.

Draft Administrative Regulation regarding risk management.

MIRA Committee

MIRA Administrative Regulation Sub-Committee

Remove silos of risk management processes.

Administrative Regulation adopted by Governing Board.

Ongoing

February 2007

Ongoing

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Goals/Status, September 2008

4. Review Risk Financing/Mitigation Process

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Goals/Status, September 2008

5. Develop a Risk “Nervous System” for Communication, Reporting and Monitoring

GOAL ACTIVITIES PARTICIPANTS OUTCOME TIMEFRAME STATUSA Invest in front-end

rollout through comprehensive communication and facilitation.

Create Marketing/Communications Sub-Committee.

Present MIRA information at Governing Board meetings, strategic conversations, new employee orientations, and employee councils.

Create website that is linked to existing MCCCD websites.

Develop training programs with EOLT.

MIRA Committee

MIRA Committee

MIRA Marketing/Communications Sub-Committee

EOLT

Marketing/Communications Sub-Committee to develop and implement marketing communications plan.

Create general awareness of MIRA.

Provide general information about MIRA.

Educate all employees on risk management.

February 2004

Ongoing

August 2005

Ongoing

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Ongoing

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Ongoing

10

Goals/Status, September 2008

5. Develop a Risk “Nervous System” for Communication, Reporting and Monitoring (continued)

GOAL ACTIVITIES PARTICIPANTS OUTCOME TIMEFRAME STATUSA Invest in front-end

rollout through comprehensive communication and facilitation.

MIRA articles to appear in MCCCD newsletters.

MIRA marketing campaign continues.

MIRA Marketing/Communications Sub-Committee

MIRA Marketing/Communications Sub-Committee

Educate all employees on risk management.

Ongoing Ongoing

Ongoing

B Metrics should be in place to measure progress and results.

Produce an annual report for the Governing Board, CEC, and Employee Groups.

MIRA Marketing/CommunicationsSub-Committee

Provide update on goals and accomplishments.

August 2004September 2005September 2006September 2007September 2008

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C Update and review the ethics initiative.

Determine tools to measure compliance and success.

Blue Ribbon Panel Continue to implement and enforce the ethics initiative.

Ongoing Ongoing

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Risk Register/Best Practices September 2008

DELEGATEDRESPONSIBILITY

RISKS/OPPORTUNITIES

AUDIT &MONITORING

RESULTS

L HR

S R

1

2

3

4B

4A

4

5

Ethical behaviors are defined.Consequences are consistently carried out for inappropriate behavior.Resources are allocated to comply with government mandates (i.e., OSHA, EPA, Grants, Financial Aid.)

Risks, impacts and opportunities are identified and assessed in a timely manner.

District/colleges will practiceBusiness Continuity Management in the event of an emergency/catastrophe.

A pandemic preparedness planis drafted.

A response plan for catastrophic terrorism is drafted.

Districtwide systems support our strategic and operational objectives and are periodically evaluated.

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RISKCATEGORY RISK TREATMENT

RISKOWNERS

E O

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VC HR; CEC; Emp. Groups;All Employees

VC Bus Services;CEC

CEC; VPs

CEC; VPs; Legal Services

CEC; VPs; Legal Services

CEC; VPs; Legal Services

VCs; End Users

See pages 14 & 15

Retain and manage.

Retain and manage.

Retain and manage.

Retain and manage.Duplicate.

Retain and manage.Duplicate.

Retain and manage.Duplicate.

F H

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Risk Categories Risk Controls

L/R – Legal /Regulatory Compliance Transfer (Contractual & Financial)HR – Human Resources Retain & ManageS – Strategic SegregateR – Reputational DuplicateF – Financial AvoidH – HazardE – ExternalO – Operational

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RISKCATEGORY

L HR

S R F H E O

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VC Academic & Student Affairs

RISK TREATMENTRISK

OWNERSDELEGATED

RESPONSIBILITY

Legal; HR; Employee Groups; All Employees

VC, IT Policy Governance

See pages 14 & 15

Retain and manage.

Retain and manage.

Employees are informed of the scope of their authority and act accordingly.

Effective information systems security procedures exist and are communicated clearly to employees and students.

There is a policy relating to international study and cross-border initiatives.8

7

6

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Risk Register/Best Practices September 2008

1. Ethical behaviors are defined. Consequences are consistently carried out for inappropriate behavior. Blue Ribbon Panel recommendation. Initial day-long training was conducted on June 4, 2007 by Tim Delaney of the Center for Leadership, Ethics and Public Service for Governing Board members and Chancellor’s Executive Council (CEC). Online training for all other employees started in Fall 2007. The Human Resources PeopleSoft system is used to track participation and to ensure that all employees schedule and complete training.

2. Resources are allocated to comply with government mandates (i.e., OSHA, EPA, Grants, Financial Aid). The Office of Internal Audit and Management Advisory Services (IAMAS) has performed a review of the Maricopa County Community College District to determine if the colleges within the District have effective and operating employee safety and health management practices in place to reduce the number and severity of work-related illnesses and injuries. The final IAMAS report will be issued in October 2008.

3. Risks, impacts and opportunities are identified and assessed in a timely manner. The MIRA administrative regulation adopted by the Governing Board on February 27, 2007 states that:

“It is the responsibility of every employee to identify, assess, and manage risks and opportunities individually, throughout our organization, and to collaboratively strive for continuous quality improvement and the efficient and effective use of our resources.” 4. District/colleges will practice Business Continuity Management in the event of an emergency/catastrophe.

The advancement of the Maricopa Emergency Management System (MEMS) according to National Incident Management System (NIMS) standards was approved by the Chancellor’s Executive Council on July 30, 2008. The District Office, at the Chancellor’s direction, created the Emergency Preparedness (E-Prep) group to develop and implement a District-wide template for:

• Planning • Response • Emergency mitigation • Recovery

The E-Prep Team has visited every college and provided each college with a template for an emergency operations plate and a business continuity plan. The emergency operations plans will be finalized in December 2008, and the business continuity plans will be completed in January 2009.

Risk Treatment Update from Risk Register/Best PracticesSeptember 2008

14

4a. A pandemic preparedness plan is drafted.

PODs (points-of-distribution) for health-related crises have been set up by Maricopa County at our college locations. The E-Prep team will be meeting with Maricopa County in October 2008 to learn more about the District’s role if PODs are activated.

4b. A response plan for catastrophic terrorism is drafted.

This response plan will be a part of the overall business continuity plan.

5. Districtwide systems support our strategic and operational objectives and are periodically evaluated. This best practice has not been assessed yet.

6. Employees are informed of the scope of their authority and act accordingly. Blue Ribbon Panel recommendation. On February 27, 2007, the Maricopa Community Colleges Governing Board unanimously approved an extensive proposal for changes in the ethics, internal controls, and accountability policies of the District. The approved changes, which strengthen existing controls and improve internal oversight by establishing more stringent requirements for reporting to the Governing Board and the Chancellor, include the recommendations of the Community Member Blue Ribbon Panel on Internal Controls, as well as Chancellor Rufus Glasper’s additional recommendations for stronger controls. The new policies also standardize the response to matters such as disciplinary action.

7. Effective information systems security procedures exist and are communicated clearly to employees and students. This best practice has not been assessed yet.

8. There is a policy relating to international study and cross-border initiatives. Blue Ribbon Panel recommendation. A new policy delineating criteria for international travel as well as changes strengthening the existing travel regulation was adopted by the Governing Board on February 27, 2007. To implement a requirement for reporting of all international travel, a reporting form has been developed and reporting commenced in Fall 2007.

Risk Treatment Update from Risk Register/Best PracticesSeptember 2008

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Scheduled Training:

Completed Training

Risk Assessment for SupervisorsDistrict Office – November 30, 2007

Risk Assessment Tools for SupervisorsChandler-Gilbert Community College – April 10, 2008Scottsdale Community College – April 12, 2008District Office – May 14, 2008

Scheduled Training

Risk Assessment Tools for SupervisorsGlendale Community College - November 5, 2008District Office - November 18, 2008

A Sampling of Comments from Training Participants:

“I loved today. Presenters were both awesome (especially together). I will incorporate risk assessment in all my planning.”

“I will incorporate this into my work schedule.”

“I will apply these principles on a daily basis - to make decisions or help us assess situations that come up.”

“The participation of the class was fun and engaging.”

“The presenters had an incredible knowledge base and an engaging delivery. Great sessions.”

Cumulative MIRA Statisticsas of September 30, 2008

Website Hits 16,046

Annual Reports Published 5

Training Courses Developed 4

Employees Trained Classroom 303 Online Tutorial 189

Risk Assessment Tools Developed 4

Risk Assessment Teams Formed 5

Risks Formally Identified 27

Risks Formally Assessed 6

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Justification: In March 2000, the Maricopa County Community College District (MCCCD) Governing Board approved an initiative to embed ongoing risk assessment and management into MCCCD’s daily operations and culture with support from the Chancellor and the CEC. The CEC will reaffirm its support and commitment annually. The Maricopa Integrated Risk Assessment (MIRA) project embraces a wider view of risk management called Enterprise Risk Management (ERM). The chancellor appoints the MIRA chairperson. The MIRA committee is comprised of representatives throughout MCCCD. These representatives need to understand the ERM process, respect the organization, advocate the program, and help facilitate the ERM process.

Responsibilities:This committee will:a. Promote and advance risk awareness and understanding through discussions and training forums with councils and other employee groups.b. Provide leadership in the identification, resolution, and monitoring of cross-organizational issues related to risk.c. Assist in the elimination of functional, cultural and department barriers in dealing with risk.d. Construct a risk assessment methodology for continuously identifying risks, both internal and external, across the MCCCD.e. Assist in the development of mitigation strategies.f. Serve as advisors to the risk manager by contributing ideas and feedback on risk management initiatives.g. Provide reports to the Governing Board, CEC, Strategic Planning Council, Capital Planning Council, and Employee Groups annually and as requested.h. Monitor the progress of the MIRA project.i. Create risk assessment teams at each college.

Reporting: The MIRA committee reports directly to the MCCCD Chancellor.

Term of Appointment: The MIRA Chair will appoint and/or reappoint the MIRA committee members by January 1st of every year. Members will serve one-year terms with the option to be reappointed annually if both the chair and the member agree.

Adopted by MIRA Project Committee on February 5, 2004 Reaffirmed June 2007

Charge

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Cumulative MIRA Statisticsas of September 30, 2008

Adopted by the MIRA Project CommitteeApril 8, 2004

The Maricopa County Community College District endeavors to be an innovative, flexible higher education institution that encourages risk assessment and management as an integral process for carrying out our mission to promote and enhance student learning and success. It is the responsibility of every employee to identify, assess, and manage risks and opportunities individually, throughout our organization, and to collaboratively strive for continuous quality improvement and the efficient and effective use of our resources.

A Description of the Maricopa County Comunity College District’sRisk Environment, Culture and Appetite

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Purpose – The Maricopa County Community College District (MCCCD) endeavors to be an innovative, flexible higher education institution that encourages risk assessment and management as an integral process for carrying out our mission to promote and enhance student learning and success. MCCCD also embraces a comprehensive approach to risk management that promotes broad strategic thinking and analysis, while fundamentally integrating our institution’s vision, mission, and values. To this end, risk management will provide our institution with the superior capabilities to identify, assess, and manage the full spectrum of risks and opportunities, and to enable management, faculty and staff at all levels to better understand and manage risk.

Background – On March 2000, the Maricopa County Community College District Governing Board, with support from the Chancellor’s Executive Council (CEC), approved an initiative to embed ongoing risk assessment and management into MCCCD’s daily operations and culture. The CEC has reaffirmed its support and commitment in July 2003, August 2004, and September 2005 and will reaffirm its support annually thereafter. This initiative is called the Maricopa Integrated Risk Assessment (MIRA) project and it extends beyond traditional risk management to embrace a wider view of risk management called Enterprise Risk Management (ERM). While traditional risk management focuses on insurable and hazard risks, enterprise risk management is a process and management tool to address all sources of risk that would threaten strategic objectives.

Approach to Risk Management – MIRA shall be collaboratively integrated into existing management processes and daily operations. To ensure that we achieve our strategy, MIRA provides our employees with the tools and capabilities to overcome barriers that arise in striving to exceed expectations. By realizing that risk management is everyone’s job, our management, faculty, and staff shall proactively identify risk while delivering high quality education to our students in a more efficient and cost effective manner. MIRA allows our employees to view issues from various angles to identify not only the risk mitigation activities, but also to seek out and act on potential opportunities—therefore challenging conventional wisdom to create better solutions.

Employee Responsibilities – It is the responsibility of every employee to identify, assess, and manage risks and opportunities individually, throughout our

organization, and to collaboratively strive for continuous quality improvement and the efficient and effective use of our resources. All management, faculty and staff are expected to demonstrate appropriate standards of behavior in the development of strategy and pursuit of expected outcomes. All Board-Approved employees shall be required to participate in training that focuses on risk identification, assessment, and management, and this training shall be rigorous, practical, and application-based. Board-approved employees includes those who have or could attain permanent status, one-year onlys, one-semester onlys, Skill Center and specially funded employees. Newly hired Board-Approved employees shall be required to participate in training during their probationary period or within one year of their hire date and every three years thereafter. This training shall be incorporated into other mandatory training and/or shall be stand-alone training. Existing Board-Approved employees shall be required to participate in training within two years after the adoption of this administrative regulation and every two years thereafter. The District shall consider ways of training temporary employees once initial training of Board-Approved employees is complete.

General Expected Outcomes – Expected outcomes include:• Increased overall effectiveness and accountability• Sound business processes; greater assurance of business continuity• Clear demonstrated compliance with applicable laws and regulations• Enhanced employee empowerment and pride• Reinforcement of the strong MCCCD cultural identity• Enhanced competitive advantage

The MIRA project shall establish a philosophy of fostering continued evaluation of effectiveness and efficiency of organizational leadership, systems, and strategies. Ultimately, accountability for resources — human, financial, intellectual, physical, and technical—will be impacted at every level of MCCCD.

Annual Review for Effectiveness – Each year the MIRA project committee shall measure progress and monitor results. This information will be presented in an annual report to the Governing Board and the CEC. This report will be submitted by August 31 of each fiscal year.

Administrative Regulation

4.16 MARICOPA INTEGRATED RISK ASSESSMENT – Adopted by the Governing Board February 27, 2007 – Motion No. 9416 Amended by the Governing Board November 27, 2007. Amended through the Administrative Regulation approval process (technical correction) December 5, 2007

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Risk Assessment Activity or Project: Date Risk Assessment Conducted: Risk Assessment Group Members:

This tool is based on risk being defined as “The opportunities, uncertainties, threats, or barriers to which MCCCD must respond in order to achieve its objectives.”

1. Review MCCCD’s Vision, Mission & Values Statements.

2. List your department’s objectives.

3. List the opportunities of the proposed activity or program.

4. List the risks that can prevent you from achieving your department’s objectives for the proposed activity or program.

5. Using the Risk Map, assess the probability and impact of each risk.

a. What is the probability of this risk occurring considering what you are doing today to prevent it?

b. What is the impact on your ability to achieve its objectives if this risk occurred?

6. Starting with your highest risk, answer the following questions for each of your five highest risks?

a. What are we doing now to prevent this risk or reduce its impact?

b. Is what we are doing effective in preventing this risk or reducing its impact to a level we consider acceptable?

c. What else should we do to prevent this risk or reduce its impact to a level we consider acceptable?

d. Who else do we need to work or consult with to prevent this risk or reduce its impact to an acceptable level?

7. Do we move forward with this activity or program?

To view the entire SMART tool, visit: www.maricopa.edu/mira/tools.php

SMARTStrategic Maricopa Assessment Risk Tool – Simple Model for Self-Assessing Risks to Achieving Objectives

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“Over the past year, a number of changes have been put in place to better define our individual and collective obligations as public stewards, to minimize the potential for conflicts of interest and provide more opportunities to review potential issues or risks.

When I refer to my vision of “One Maricopa” it is with great anticipation of new and enhanced collaboration. Our District is widely respected for its rich history of innovation. When we work together, as a system, rather than focusing on site-based solutions to educational services, initiatives, or common challenges, we make an even greater positive impact on the communities we serve.” Dr. Rufus Glasper May 5, 2008

One of the underlying premises of the MIRA project is increased effectiveness and accountability. We exist to provide value for our stakeholders--the communities we serve. All entities face uncertainty, and the challenge for MCCCD is to determine how much uncertainty to accept as we strive to grow stakeholder value. Uncertainty presents both risk and opportunity, with the potential to erode or enhance value. The MIRA project enables personnel to collaboratively identify, assess, and manage risks and opportunities, thereby increasing shareholder value.

Conclusion

“Risk –– let’s get this straight up front –– is good. The point of risk management isn’t to eliminate it; that would eliminate reward. The point is to manage it –– that is, to choose where to place bets, and where to avoid betting altogether.”

~Thomas Stewart Fortune

Going Forward

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MCCCD Marketing, 2008