Enterprise Risk Management at Texas A&M University

Transcription

1 Enterprse Rsk Management at Texas A&M Unversty Assessng Our Rsks August 21, 2013

2 ERM Defnton (coso) A process, affected by an entty s board of drectors, management, and other personnel, appled n strategy settng across the enterprse, desgned to dentfy potental events (rsks) that may affect the entty and to manage rsk to be wthn the entty s rsk appette (tolerance) to provde reasonable assurance regardng the achevement of the entty s objectves. 2

3 Rsks Rsk: An event/acton that adversely mpacts the entty s ablty to acheve ts objectves Strategc affects the Unversty s ablty to acheve goals and objectves, compettve and market rsks, etc. Fnancal affects loss of assetsequpment, funds, resources, fraud, etc. Reputatonal affects reputaton or brand, publc percepton, poltcal ssues, etc. RISKS Operatonal affects on-gong management processes and procedures, fraud, etc. Technology affects the Unversty s electronc processes, equpment, fraud, and data storage, etc. Complance affects complance wth nternal and external laws and regulatons, safety and envronmental ssues, ltgaton, conflcts of nterests, etc. 3

4 ERM Drvers Management (CEO, Provost, CFO) Board of Regents Audt Commttee Audtors (Internal and External) Sgnfcant Events

5 ERM at TAMU Top down approach Unversty-wde rsk assessment frst performed n 2004, updated 2006, 2009, 2011, and agan n 2013 o URC revew of sgnfcant mtgatng actvtes (2008, 2010, and 2012) Rsk assessments performed on major Unversty unts updated perodcally (.e., ndvdual Colleges, Research, Athletcs, Fnance, SFA, HR, EHS, UPD, Student Affars, Dversty, Athletc Complance, Transportaton Servces, UES, Graduate Studes, etc.) 5

6 Benefts of ERM Value added process - Involve partcpants n dentfyng and managng rsks actve as part of the soluton - Increase partcpant s exposure to other areas enhances knowledge of operatons - Increase rsk conscousness n decson makng provdes new perspectve - Focus resources and efforts on hgh rsk areas breaks down barrers and demonstrates prortes that are used 6

7 ERM Governance System Polcy (Aug. 2008, updated June 2010) Presdent s Memorandum (Sept. 2009) Internal Audt on ERM (Sept. 2010) Follow-up Internal Audt (Feb. 2012) Standard Admnstratve Procedure M0.01 (March 2011) 7

8 Rsk Assessment Steps Revew msson and strategc plan/goals/objectves Identfy major actvtes and functons Identfy and rank rsks Prortze by consderng two factors: mpact and probablty Identfy and document mtgatng actvtes, montorng, and executve reportng processes Evdence of actvty and desgnated accountable person/poston, supervsory revews, manageral oversght, communcaton flows, and other assurances ganed by management that rsks are effectvely managed Assess effectveness of mtgatons / Follow-up Perform a revew or observe the mtgatons - focus on sgnfcant mtgatng actvtes for hghest ranked rsks; determne that mtgatons are adequate and workng as planned 8

9 Rsk Assessment Tools Facltated sessons Excel spreadsheets Color coded, easy to use, lnked w/macros Free (developed by Davd B. Crawford, UTS) Avalable on URC webste: Votng software and touch pad equpment Anonymous rankng of mpact and probablty RISKS ACTIVITIES Research Fnance & Admnstraton HH Research Development, Programs & Facltaton HH Noncomplance wth polces, rules, laws Decrease n State support HH HM Untmely reportng Lack of research management nformaton HH HM Rsks ranked consderng both ther mpact and probablty: Not rewardng academc excellence Ineffectve metrcs for evaluatng programs and personnel Impact - the consequence(s) of the rsk occurrng (H=Hgh, M=Medum, L=Low) Probablty - the lkelhood of the rsk occurrng (H=Hgh, M=Medum, L=Low) M t g a t n g A c t v t e s = HH, HM = HL, MH = MM, ML, LH = LM, LL Research Fnance & Admnstraton Noncomplance wth polces, rules, laws Untmely reportng HM HM Not rewardng academc excellence Lack of coordnated research admn. Lack of seed/ ncentve fundng R s k s HM MH Lack of a coordnated research admn. structure Unfunded mandates Lack of ndustral fundng/ partnershps Unfunded mandates HL Not followng protocol Tranng x x x Marketng & communcaton to Legslators & Publc x x Polces/Forms x x Sgnature authorty - based on delegaton x x x x Not followng protocols Evdence of Control Actvty Grant tranng for proposal development group, Research Foundaton personnel, and dept staff. New faculty orentaton. Onlne tranng. Presentaton to legslature (Govt. Affars/VPR/Presdent). Publcatons/Webste. Research road show - commttee. Cost sharng, revew procedures, sgned approval documents. Sgnature sheets. Emal notfcaton for changes. PI certfcatons x Onlne tranng. Forms sgned. Offce of research complance x x x x Budgetary control x x x x Manager oversght and verbal communcaton wth Sr. mgmt Budget analyss (budget vs. actual). Analyss revew documented by sgnature and date. 9

10 Contact Informaton Peggy Zapalac Webstes