Session 11: Improving the Health of your University Risk Programs

Presented by:• Toni Casey University of Queensland• Harry Rosenthal Unimutual

Improving the Health of your University Risk Programs

Tools for DiagnosisTherapies for Rehabilitation

ANZUIAG 2010Toni Casey, UQ

Harry Rosenthal, Unimutual

Risk Program Diagnosis Tools

• Universities have numerous risk related programs: BCP, risk register reviews, risk assessments, compliance activities, quality assurance activities

• IA can play a useful role in improving the risk programming and ensuring it is focused on reducing the most important business risks the university faces.

• Chinese saying: To obtain wisdom you must:– Read 10,000 books and– Walk 10,000 miles

In summary success & wisdom is the result of understanding the 2 dimensions of each endeavor:

The inherent nature of the task itselfWho you are

Diagnosis: The View of Risk Programs

ComplianceExerciseCompliance

Exercise

Management ExcellenceManagement Excellence

“What Does the Client/Division/Business Unit Think of Risk Programs/Projects?”

“What Does the Client/Division/Business Unit Think of Risk Programs/Projects?”

Typical Characteristics

•Aligns to strategic direction

•Improves efficiency/ effectiveness of organisation

•Meets expressed and un-expressed objectives of stakeholders

Typical Characteristics

•Aligns to strategic direction

•Improves efficiency/ effectiveness of organisation

•Meets expressed and un-expressed objectives of stakeholders

Typical Characteristics

•Requirement made by others

•Part of a growing list of things to do

•Something you will be audited for later

•Not connected to core business

Typical Characteristics

•Requirement made by others

•Part of a growing list of things to do

•Something you will be audited for later

•Not connected to core business

Diagnosis: The View of Risk Professionals

“Who Are You” Continuum?“Who Are You” Continuum?

Characteristics

• Works to understands client needs and objectives

•Acts as a guide on a journey

•Will constantly support with advice and direction

•Grows with you

Characteristics

• Works to understands client needs and objectives

•Acts as a guide on a journey

•Will constantly support with advice and direction

•Grows with you

Characteristics

•Just following orders.

•Not part of the decision making process

•Contributes little to “Big Picture”

•One trick pony

Characteristics

•Just following orders.

•Not part of the decision making process

•Contributes little to “Big Picture”

•One trick ponyBureaucratic ApparatchikBureaucratic Apparatchik

Professional Life CoachProfessional Life Coach

Consultant B

ureaucrat

Compliance Management Excellence

Quadrant 3 Characteristics

•Low Division engagement but desire to complete tasks.

•Risk staff: will complete task but may feel underutilized, frustrated.

•Good ground for IA to help develop Division along continuum.

Quadrant 3 Characteristics

•Low Division engagement but desire to complete tasks.

•Risk staff: will complete task but may feel underutilized, frustrated.

•Good ground for IA to help develop Division along continuum.

Quadrant 4 Characteristics

• Division engagement, required nurturing/relevance.

• Risk staff: will feel energized.

• Good ground for IA to become welcome consultants help develop along continuum. Capture best practices.

Quadrant 4 Characteristics

• Division engagement, required nurturing/relevance.

• Risk staff: will feel energized.

• Good ground for IA to become welcome consultants help develop along continuum. Capture best practices.

Quadrant 2 Characteristics

• Division engagement, but will look for others to assist and support.

• Risk staff: will feel overwhelmed with admin detail, but uninformed & anxious.

• Good ground for IA to become supportive of process, assessing skills of participants.

Quadrant 2 Characteristics

• Division engagement, but will look for others to assist and support.

• Risk staff: will feel overwhelmed with admin detail, but uninformed & anxious.

• Good ground for IA to become supportive of process, assessing skills of participants.

Quadrant 1 Characteristics

• Division will go through motions with adequate coaxing/threats

• Risk staff: will feel like a taskmaster

• IA should recognise this is a toxic mixture. Wear protective clothing. .

Quadrant 1 Characteristics

• Division will go through motions with adequate coaxing/threats

• Risk staff: will feel like a taskmaster

• IA should recognise this is a toxic mixture. Wear protective clothing. .

3 4

1 2

Consultant B

ureaucrat

Compliance Management Excellence

3 4

1 2

Therapy for the Risk Program

Design; make it simple and fit the organisation

Relevance; user must be able to see it in their world

Useful; must be tangible benefits for the organisation

Growth; the process should improve and change over time

Sensible; the process should encourage use of common sense

Therapy for the Risk Professional

Deliver tools that help deliver benefits

Include & involve; make risk part of decisions

Encourage; support educated risk taking

Teach & learn; it’s not a one way street

Sell the value of risk to the business (not just another thing to do).

Internal Audit support forLifelong Health

Embed risk in Internal Audit PlanseXplore how risk is considered in practice

Engage with your risk professionals

Review & report on the framework against good practice

Communicate the need for improved risk oversight in audit reports

Indicators; keep your eye on indicators of emerging risks

Support the risk professionals to sell the benefits Encourage a culture of risk awareness