1. Enterprise Risk Management in DHHS
Erin Baker Director Human Resources and Workplace Safety

2. Risk in DHHS: My roles and responsibilities
Leader: Risk Project Steering Group
Member of Departmental Executive: oversight of DHHS enterprise risk management framework and strategic level risk register; ownership of some strategic risks
Manager: oversight of business unit risk register
Mentor: through Risk Network – building a culture of risk management

3. In DHHS we manage risk to:
Increase likelihood of achieving objectives
Improve quality of services
Protect staff, assets, property and reputation
Improve performance consistent with values
Support better decision making
Apply our resources more effectively

4. Where did it all start?
Frank discussions about how much risk the organisation wished to pursue
Having the difficult conversations
Senior executives stepping outside of their own portfolio and thinking strategically across the organisation.

5. DHHS – a journey to risk maturity
What is an enterprise risk management system?
Why did we choose it?
How did we do it?
What are the learnings?

6. Enterprise risk management (ERM)
ERM supports the achievement of an organisation’s objectives by addressing the full spectrum of its risks and managing the combined impact of those risks as an interrelated risk profile.

7. Principles of ERM
The same framework applies across, up and down the organisation
The framework is tailored to the organisation, owned by its leaders and integrated into planning, policy and systems
We know the risks that could impact on achieving our objectives
Senior management and governance committees have ‘line of sight’ to those risks

8. DHHS ERM Governance Structure
Audit and Risk Committee
Secretary
Departmental Executive
Performance, Finance and Risk Committee
Groups
Business Units

9. Why ERM for DHHS? A ‘mixed business’ with a broad mandate
National health reforms
Framework no longer matched the organisation
Changes to the external environment
Improve our performance

10. How did we do it?
Established a project - clear objectives, tight timeframe, plan, governance, sponsor, dedicated project manager, access to resources
Gained high level support by engaging leaders to:
develop and endorse the risk framework
assess strategic risks
achieve a common language
know our risks

11. Project Objectives Know our risk profile
Validate and communicate our risk profile
Establish a risk governance system
Develop a risk management culture
Integrate risk management with systems

12. Objective 1: Knowing our risks
DHHS needed an up-to-date risk profile
Criteria linked to strategic objectives
Risk assessment by executive
Produced an initial risk profile – top risks

13. Objective 2: Communicate and Consult
Risk assessment workshops for senior management
Produced a strategic risk profile and group profiles
Value of communicating and consulting:
Shared understanding
Shared language
Enhanced decision making

14. Objective 3: Governance System
Policy, Handbook, Tools
Reporting and escalation
Risk Activity Management Plan
Risk Network
Risk Appetite Statement

15. Objective 4: Build a Culture of Risk Management
Senior management buy-in
Communicate the value of ERM
Managers are key stakeholders
Risk Network – support, mentor, consult

16. Objective 5: Integrate Risk Management
Align with business planning cycle
Integrate policies and processes

17. What does it look like?
Risk assessment criteria tailored to our organisation and linked to our strategic objectives
Reporting system linked to our ‘risk tolerance’
Escalation of ‘high’ and ‘extreme’ risks for treatment and oversight

18. What are the outcomes? Less surprises Better planning
Better communication
Better decisions

19. What are the learnings? IT systems always take longer than you think
Know your requirements before you start
Its OK to start with something simple

20. What are the next steps?
Rolling out framework to business units, with support of Risk Network
Setting the risk appetite
Rolling out risk treatment plans
Automated risk register
First year of full cycle – business planning, budget, performance management
It’s a journey!

21. Questions?