Integrated Risk Management (IRM) in the Public Sector
Integrated risk management is a continuous, proactive and systematic process to understand, manage and communicate risk from an organization-wide perspective. It is about making strategic decisions that contribute to the achievement of an organization’s overall corporate objectives.
Treasury Board Secretariat, IRM Framework
Organizations manage risks every day - risk management should not be a once a month or once a year activity. IRM builds on existing practices and provides you with tools to enhance planning and decision-making processes.
Integrated Risk Management Model
Adapted from the Integrated Risk Management Framework, Treasury Board Secretariat.
Applying risk management fulfills key management accountability and governance expectations established by the Treasury Board Secretariat (TBS) in their Management Accountability Framework (MAF) .
Your IRM Framework will ensure that:
- The corporate context, criteria and practices for managing key risks are defined.
- All risk management decisions comply with legal requirments and ethical policy, and that all activities are conducted with the view of maintaining your organization's reputation.
- All risks undertaken are related to the achievement of strategic outcomes defined in your Program Activity Architecture (PAA).
- Risk management processes are documented and fully integrated with major strategic and operational processes.
- Risk management roles, responsibilities and authorities are assigned to personnel who are in the best position to manage strategic, operational and project risks.
- Risk identification and assessment is conducted on a continuing basis and is integrated with existing long-term strategic business planning, as well as day-to-day operational decision-making.
- A risk escalation approach is used to ensure that timely decisions related to risk response are made at an appropriate level of the organization.
- The interests and perceptions of clients, the public, and other stakeholders are fundamental considerations in risk management.
- Risk management results are measured and monitored.
- Risk management experience and best practices are shared across the department.
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