The University has begun a refresh of the Enterprise Risk Program framework to supports its strategic and operational decision-making process. This website will evolve over time as McMaster's Enterprise Risk approach continues to develop and mature.
A risk is any event or action that impacts the University's ability to achieve its objectives. Risks can be opportunities or threats and can be categorized into five areas:
- Strategic events that affect the University's ability to achieve its goals and objectives, including support of the University's mission.
- Reputational protecting the University's brand and most valuable asset.
- Compliance events that affect compliance with laws and regulations, including safety and environmental issues, litigation and conflicts of interest.
- Operational events that affect ongoing management processes and procedures.
- Financial events that affect the University's financial health.
Enterprise risk management is:
- a university-wide risk management process applied in strategic setting across the university,
- designed to identify potential events that may positively or negatively affect the institution, and
- designed to manage the risks so they are within the university's risk appetite, thus contributing to the assurance that the institution's objectives can be achieved.
- Useful tool to identify institution-wide and department risks and prioritize their impact and resource requirements to address them.
- Identifies interdependencies and key areas where coordination across the institution is required.
- Development of an ongoing comprehensive risk database using a common methodology across the institution.
- Provides information and feedback to the Senior Management Team and the Board of Governors' Audit Committee regarding key risks being faced by the university and departments/faculties within it.
- Coordinates with other groups/programs within the university in addressing threats and opportunities for the university.
- Enterprise Risk Management is a best practice that has been embraced by higher education institutions.
Senior Manager, Enterprise Risk
Tel. (905) 525-9140, ext. 23554
Created August 12, 2011