520 words.
Lessons in ERM implementation
What can we make of this successful example of Enterprise Risk Management implementation, which has stood the test of time, and was praised by the Auditor General? Are there implications for others contemplating ERM for their organizations?
I believe the answer is an emphatic yes! This case shows important lessons for any organization, whether they be large or small, and whether they be public sector, “arms-length” or private sector — simply because the implementation relied on perennial principles.
The accomplishment the Camosun team is remarkable when taking into account the sheer size of the organization and number of departments involved; the complexity of the culture (characterized first by its division into administrative and academic parts); and the fact that the implementation team crushed the industry wisdom by putting in place in merely 18 months what was commonly assumed to take 3-5 years.
Intellectual appreciation prepares the way
This case was ideal in the sense that the appreciation of core concepts and demonstration of value preceded the main work of implementation.
We saw in previous posts how the Board was not just intrigued with the concept of Enterprise Risk Management, but was determined to adopt it in such a way as to really enhance accountability.
Practical appreciation
Senior executive gained appreciation of risk assessment methods when they carried out risk identification for the institution’s strategic plan. They were able to observe, assess and adjust the core practice, while simultaneously mitigating risk detected in their strategic initiatives. Since this was visible to others in the college, their advocacy of risk management had credibility.
Principles of program implementation
Management initiatives so often fail. In this case, the implementation team carefully observed certain principles to guide the roll-out:
1. They allowed users to prove to themselves the value and utility of the risk process, avoiding a command-and-control implementation that would have alienated faculty and staff;
2. They followed incremental trials that allowed end-users the chance to adjust procedural details to better suit the culture;
3. They persevered to solve minor challenges and work with late adopters until the ERM initiative could definitively be called a success.
Tools and templates
Links to policy, tools and templates developed by the Camosun team are listed in part 4 of this blog post series.
Many of the tools listed (still on the website after many years!) are only one or two page documents. It is not through great length and complexity that ERM tools are effective. It is by answering an administrative need in once concise step (example: a context paper to prepare a risk ID session). They are freely available for anyone to peruse and emulate.
Auditor General’s testimony
Testimony of M. Gaston, Office of BC Auditor General: "Our examinations also found examples of good governance practices in all four Crown agencies. Just some examples... Camosun College's risk management framework” (Minutes, Select Standing Committee On Public Accounts. Monday, June 11, 2012, Hansard page 607).
From the AG's May 2012 Crown Agency Board Governance report on Camosun College: "We found good practices including high attendance, at board and committee meetings and evidence of appropriate controls in place to manage organizational risks."