A presentation for the AURIMS Conference 2006, Albany Campus, Massey University

Presentation by Anne Walker, Risk Manager

Massey UniversityNew Zealand

Implementing a risk management framework – a case study

It’s not rocket science…..

Presentation content

• New Zealand Tertiary Sector – the context

• Challenges we face

• Massey University risk management framework

• Our journey

• Lessons we are learning

New ZealandTertiary Sector

Post-graduate degrees

• post-compulsory education - $3 billion p.a. - 1.3% GDP• structural change over last 5 years• growth of wananga and PTE’s

Sub-degree

Private Training Establishments(-600)

Universities (8)

College of Education(4)

Polytechnics (20)

Wananga(3)

Research

Applied Training Skills

51.2%25.6%

3.8%

7.9% 10.1%

UniversitiesPolytechnicsColleges of EducationWanangaPrivate Training Establishments

Source: Ministry of Education -2002

Government Fundingby Provider Type

Tertiary Sector Reformin New Zealand

• Excellence – Relevance – Access

• Knowledge society

• Tertiary Education Strategy (TES)

• Focus on quality

• New funding framework (e.g. PBRF)

• Differentiation

Fiscal Reality

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

1999 2000 2001 2002Year

% o

f tot

al re

venu

e

Gov't grants Domestic Fees OtherResearch International Fees Linear (Other)

Source: Scott & Scott (2004)

Implications for Universities in New Zealand

Planning implications

contribution to the government objectives

Changes to the funding framework

performance element

student fee maxima

Dependence on non-government revenue

international studentscommercialisationentrepreneurial activities

What’s driving risk in our Universities

Strategic• New or emerging

technologies

• Governance processes

• Commercialisation opportunities

• Excess capacity

• Quality academic programmes

• Increasing expectations of students

Operational• Accountability

• IP protection

• HR management

• Security

• Competition

• Student behaviour

• Contracting

Massey University

Strategic Risk Drivers

• Government priorities

• Funding changes

• Demographic trends

• Legislative change

• Global economy

• New teaching and IT technologies

• Outcomes for Māori people

• Environment

Financial

Operations

ManagementStrategy

Risk Management

Business Risk Management

Enterprise-wideRisk Management

Risk Management Perspective

Valu

e C

ontr

ibut

ed

• all risks

• linkage to strategic goals

• key governance tool for governing bodies

Managing hazards and compliance

Achieving strategic goals

The Risk Management Challenge

Risk Management Framework

People

Financial

Legal

Academic

Moral

Reputational

Commercial

Operational

Governing Body

Risk

Drivers

AllActivities

Parent & Subsidiaries

All Risks

AS/NZS 4360

Massey UniversityRisk Management Framework

• Governance responsibilities

• Risk identification and analysis

• Risk control

• Risk treatment

• Performance review

• Performance assurance

Establish the Context

Identify Risks

Analyse Risks

Evaluate Risks

Treat Risks

Com

mun

icat

ion

& C

onsu

ltatio

n

Monitor &

R

eviewA

cces

s R

isks

AS/NZS 4360 Risk Management Standard

Massey UniversityPlanning Framework

Charter

10 Year Plan

Profile (3 Year Plan)

Annual Plan

Performance Reporting Frameworkand

Risk Management Framework

Activities supporting Implementation

Provision of senior management support

Links to strategic planning

Defined responsibilities competencies for identifying and

reporting risk

Education, awareness and training programmes (incl. risk workshops)

Learning though application of risk/ knowledge management tools

Push

Pull

Clear expectations

Governance expectations

Performance measurements against KPIs

Risk reporting

Annual audit of risk management systems

Penalties, recognition and rewards

Where have we got to??

Financial

Operations

ManagementStrategy

Risk Management

Business Risk Management

Enterprise-wideRisk Management

Risk Management Perspective

Valu

e C

ontr

ibut

ed

Health and safety,

compliance, policies

Strategic Plans

Investment analysis

We are about here

Final thoughts …