Item - 2015.AU3.9
Tracking Status
- City Council adopted this item on July 7, 2015 without amendments and without debate.
- This item was considered by the Audit Committee on June 26, 2015 and adopted without amendment. It will be considered by City Council on July 7, 2015.
AU3.9 - Implementing an Integrated City-wide Risk Management Framework
- Decision Type:
- ACTION
- Status:
- Adopted on Consent
- Wards:
- All
City Council Decision
City Council on July 7, 8 and 9, 2015, adopted the following:
1. City Council request the City Manager to review options for managing risks on an integrated basis across the City and report back to Council on a work plan and timeline for implementation. The review to consider:
a. an appropriate corporate Enterprise-wide Risk Management (ERM) policy and/or enterprise-wide framework for an integrated approach to managing risk across the City.
b. the appropriate resources, tools, and job aids to be made available to divisions, agencies, and corporations, to support a common and consistent understanding of risk management processes and practices; and
c. the appropriate mechanisms for tracking and monitoring risks and to report on significant risks to City Council and/or appropriate committee of Council.
Background Information (Committee)
https://www.toronto.ca/legdocs/mmis/2015/au/bgrd/backgroundfile-81490.pdf
Presentation material submitted by the Auditor General
https://www.toronto.ca/legdocs/mmis/2015/au/bgrd/backgroundfile-81813.pdf
AU3.9 - Implementing an Integrated City-wide Risk Management Framework
- Decision Type:
- ACTION
- Status:
- Adopted
- Wards:
- All
Committee Recommendations
The Audit Committee recommends that:
1. City Council request the City Manager to review options for managing risks on an integrated basis across the City and report back to Council on a work plan and timeline for implementation. The review to consider:
a. An appropriate corporate Enterprise-wide Risk Management (ERM) policy and/or enterprise-wide framework for an integrated approach to managing risk across the City.
b. The appropriate resources, tools, and job aids to be made available to divisions, agencies, and corporations, to support a common and consistent understanding of risk management processes and practices.
c. The appropriate mechanisms for tracking and monitoring risks and to report on significant risks to City Council and/or appropriate committee of Council.
Decision Advice and Other Information
Beverly Romeo-Beehler, Auditor General, made a presentation to the Audit Committee on this Item.
Origin
Summary
Every five years, the Auditor General’s Office performs a detailed risk assessment of the operations of the City and those agencies and corporations included within its mandate. The purpose of the audit risk assessment is to identify high risk areas that will be prioritized for future audits. The exercise includes a high level evaluation of risks associated with the operations in City divisions, agencies and corporations.
During the Auditor General’s assessment of risk across the City, it became apparent that while certain elements of an integrated enterprise-wide risk management (ERM) framework are present, a complete and formal framework is not in place.
Given the size and complexity of the City, a holistic approach to managing risk would be more appropriate. The application of an integrated enterprise-wide risk management framework is expected to enable management and staff to better understand the nature of risk, and to manage it more systematically.
This report includes one recommendation. Management’s response to the recommendation is included as Attachment 1.
Background Information
https://www.toronto.ca/legdocs/mmis/2015/au/bgrd/backgroundfile-81490.pdf
Presentation material submitted by the Auditor General
https://www.toronto.ca/legdocs/mmis/2015/au/bgrd/backgroundfile-81813.pdf