2017-2018 Corporate Risk Profile
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Table of contents
Introduction
Indigenous and Northern Affairs Canada (INAC) supports Indigenous peoples (First-Nations, Inuit and Métis) and Northerners in their efforts to:
- Improve social well-being and economic prosperity;
- Develop healthier, more sustainable communities; and
- Participate more fully in Canada's political, social and economic development — to the benefit of all Canadians.
The Department has a mandate to support Canada's Indigenous and northern peoples in the pursuit of healthy and sustainable communities, and broader economic and social development objectives. Efforts are guided by the Department's mission statement: Working together to make Canada a better place for Indigenous and northern peoples and communities.
INAC is faced with many challenges and opportunities as it delivers its mandate and contributes to the achievement of the Government of Canada's priorities and commitments. INAC funds or delivers programs and services to diverse groups of people and individuals who have varied and distinct needs and priorities. Those programs and services are delivered to communities large and small, urban and remote, all across the country. Most of INAC's services are delivered through partnerships with Indigenous communities, the provinces and territories, Indigenous organizations and organizations in the North.
INAC's responsibilities are largely shaped by unique demographic and geographic factors, as well as centuries of Canadian history that include the signing and implementation of treaties. At the same time, the changing national, social, economic and political landscapes strongly influence INAC priorities and delivery of services. Given that the Department operates in a complex and continually changing environment, INAC is faced with a variety of risks. In order to mitigate these risks and achieve departmental objectives, INAC employs a range of risk mitigation and management practices.
Risk Management Approach
A well-defined governance structure has been established within INAC to implement and sustain effective risk management practices throughout department. The governance structures and processes for risk management are set out in detail in the INAC Integrated Risk Management Framework and embedded within INAC's governance structures.
Consistent with the requirements of the Treasury Board Secretariat (TBS) Framework for the Management of Risk, the Deputy Minister (DM) is primarily responsible for the management of corporate risks and the effective implementation of risk management practices within the Department. The Assistant Deputy Ministers (ADM) and Regional Directors General (RDG) are responsible for the identification, assessment, mitigation, monitoring and reporting of risks at the program and sector/region levels, and are supported by their respective Directors General (DG) and Associate Regional Directors General (ARDG).
Furthermore, ADM-level Risk Leads are assigned responsibility by the Deputy Minister for each corporate risk and are tasked with: co-ordinating mitigating actions across the department and with external partners and stakeholders and; reporting to senior management on a regular basis to consider the need to reassess risk levels and adjust mitigation strategies.
Responsibility for identifying, assessing and mitigating corporate risks is shared by managers at all levels. Responsibility for the oversight function within the department, including oversight of the effectiveness of risk management, rests with the Deputy Minister who is supported by the Associate Deputy Minister, Chief Financial Officer (CFO), the Chief Risk Officer, the Operations Committee, the Senior Management Committee (SMC) and the Departmental Audit Committee (DAC).
The cornerstones of INAC's risk management approach are the Corporate Risk Profile (CRP), program risk profiles, and region/sector risk assessments that serve as primary risk management tools at each level. At the Corporate level, the CRP and Corporate Business Planning processes serve as the primary means of assessing and planning to respond to corporate risks. Although the CRP process is facilitated by the Risk Management Centre, the annual update of the CRP is championed and led by the Deputy Minister and the Chief Risk Officer. The results of the CRP feed directly into the corporate business planning process of the department, informing the establishment of both priorities and plans.
The Development of the INAC Corporate Risk Profile
The purpose of the CRP is to present a point-in-time overview and assessment of the most significant risks which could impair achievement of the Department's mandate. The INAC CRP was updated in December 2016 in order to allow sectors to integrate risk mitigation activities into the Report on Plans and Priorities and the Corporate Business Plan.
The INAC CRP update process for fiscal year 2017-18 included a thorough review and discussion by Operations Committee members, chaired by the Deputy Minister, of all the corporate risks designated as high risk. This discussion allowed senior management to re-examine the assessments as well as to discuss the validity and comprehensiveness of proposed mitigation measures. Risk Leads subsequently updated the risks based on the results of the discussion.
The CRP update process included the following:
- Review of region, sector and program risk profiles to inform and update specific risk areas;
- A review of the most recent version of environmental scans, Report on Plans and Priorities, Departmental Performance report, region and sector plans, quarterly performance reports of regions and sectors, findings of internal and external assurance providers, and documentation on key business transformation initiatives;
- Targeted interviews with senior officials within sectors and regions;
- Initial drafts of the CRP risks were presented to the Risk Leads for validation;
- The risk information most relevant to the regions was brought to the Associate Regional Director Generals forum for discussion and comment;
- Updated versions of the corporate risks were presented to the Senior Management Committee where risks and current controls were discussed, validated and assessed;
- With the updated and assessed corporate risk profile, the Risk Leads oversee the development and discussion of Risk Mitigation Plans for their respective risks;
- Discussion will continue on the nature and level of the risks at the Operations Committee over the course of the year;
- The updated CRP is distributed to management departmental planners for consideration in their planning activities.
INAC's CRP for FY 2017-18 reflects the Department's most significant external and internal risks related to its broader, longer-term mandate, as well as strategic and policy risks. After careful consideration by INAC's senior and executive management, eight risk categories were included in the 2017-18 CRP, three external risks and five internal risks. All risks were thoroughly reviewed and revised by senior management to refine the risks, the risk drivers and the impacts, and to ensure the current realities of INACs internal and external operating environments were well reflected. Below are INAC's assessed corporate risks for 2017-2018:
- Legal Risk (High)
- HR Capacity Risk (High)
- Environmental (High)
- Indigenous Relationship Risk (High)
- Implementation Risk (High)
- External Relationship Risk (Moderate)
- Information for Decision-Making Risk (Moderate)
- Government Partnerships Risk (Moderate)
Notice to the reader: The information found in the following Corporate Risk Summaries is based on information and considerations available at the time of the risk assessment. The risk mitigation activities are reviewed by the Risk Leads and presented to the Operations Committee for discussion and updating on an annual basis.
Descriptions of the External Risks
(1) Environmental Risk (High) - There is a risk that INAC may not be able to manage environmental issues and liabilities in a timely and cost-effective manner. "Environmental Risk" refers to the risk to the Department posed by human activities that affect the environment, including economic development activities (such as new infrastructure construction, agriculture, mining, and forestry), waste disposal (such as wastewater and solid waste), and environmental processes such as climate change.
(2) Legal Risk (High) - There is a risk that INAC may not be able to effectively plan for, or respond to, legal risks that affect the activities of the department. "Legal Risk" recognizes that legal agreements and court decisions of the past, legal actions currently in progress; and potential litigation and contingent liabilities, have a significant impact on the activities of the Department. INAC must invest substantial effort into foreseeing, planning for, and responding to, legal decisions to ensure it is responsive to legal change.
(3) Indigenous Relationship Risk (High) - There is a risk that INAC may not be able to build and sustain strong, productive and respectful relationships with Indigenous Peoples, communities, organizations and governments to contribute to the delivery of its mandate, and that there will be a lack of common understanding as to the nature of the relationships and related expectations. "Indigenous Relationship Risk" relates to fostering and maintaining the broad spectrum of relationships with Indigenous communities, persons and their representative organizations. To truly succeed in the long-term, INAC must renew its relationship with Indigenous Peoples and continue to build open and trusted partnerships that take into account a fast changing context and that are based on efficient service delivery, recognition of rights, respect, co-operation, and partnership.
Descriptions of the Internal Risks
(4) Implementation Risk (High) - There is a risk that INAC may not be able lack the ability and capacity to successfully implement new initiatives, while sustaining current program delivery. "Implementation Risk" refers to the systems, practices and governance needed during the execution phase of an initiative in order to generate value and benefit. Successful implementation is a demonstration to the public and intended beneficiaries of the competence and resolve of the Department.
(5) Human Resources Capacity Risk (High) - There is a risk that INAC managers may not be able to attract, develop and retain qualified, experienced and representative human resources in a timely manner. "HR Capacity Risk" speaks to the fundamental need to accomplish goals through people. INAC must succeed in attracting, developing and retaining qualified, experienced and representative Human Resources in a timely manner.
(6) Government Partnership Risk (Moderate) – There is a risk that INAC and its federal government partners may not effectively and efficiently collaborate in the development and delivery of policies and programs. "Government Partnership Risk" recognizes that if a whole-of-government approach is not taken to Indigenous and Northern issues, federal partners will assume these issues are the sole responsibility of INAC, potentially undermining cross-government policy development, program design and implementation improvements, operational efficiency, as well as efforts toward reduce the administrative burden for recipients.
(7) Information for Decision-Making Risk (Moderate) - There is a risk that INAC may not make sufficient progress to improve access to timely, pertinent, consistent and accurate information to support planning/policy, resource allocation and programming decisions, monitoring/oversight, and to fulfill accountability, legal and statutory obligations. "Information for Decision-Making Risk" acknowledges the critical importance of having information that is reliable, timely, pertinent, consistent and accurate to support good decision making and to ensure legal and statutory obligations are met.
(8) External Partnership Risk (Moderate) - There is a risk that INAC and the provinces, territories, local government, industry, academia and non-governmental organizations may not effectively and efficiently partner with INAC to contribute to the delivery of its mandate. "External Partnership Risk" recognizes that strong and effective relationships with external partners facilitate the Department's ability to deliver programs, services and funding agreements and that in the absence of effective external relationships, these activities could negatively affect social and economic outcomes in Indigenous and northern communities.
Corporate Risk Summaries
Environmental Risk: There is a risk that INAC may be unable to manage environmental issues and liabilities in a timely and cost-effective manner.
| Risk response strategy | Link to the department's programs | Link to mandate letter, government-wide and departmental priorities |
|---|---|---|
|
Infrastructure and Capacity Northern Governance and People Northern Science and Technology Northern Land, Resources and Environmental Management |
Implementing the Budget 2016 essential infrastructure engagements Amendment of environmental legislation |
Legal Risk: There is a risk that INAC may not be able to effectively plan for, or respond to, legal risks that impact the activities of the department.
| Risk response strategy | Link to the department's programs | Link to mandate letter, government-wide and departmental priorities |
|---|---|---|
|
Rights and Interests of Indigenous Peoples Management and Implementation of Agreements and Treaties Other Claims |
Review of laws, policies and practices |
Indigenous Relationship Risk: There is a risk that INAC may not renew and sustain strong, productive and respectful relationships with Indigenous peoples, communities, organizations and governments to contribute to the delivery of its mandate.
| Risk response strategy | Link to the department's programs | Link to mandate letter, government-wide and departmental priorities |
|---|---|---|
|
Governance and Institutions of Government Rights and Interests of Indigenous Peoples Education Social Development First Nations Individual Affairs Urban Indigenous Participation Northern Governance and People Internal Services |
Implementing the Truth and Reconciliation commission's Call to Action Modern treaties, self-government agreements and other key government structures Launch the engagement strategy for a National Reconciliation Framework Inquiring into murdered and missing Indigenous women and girls Review of laws, policies and practices Implementing a new fiscal relationship Enhancing First Nations Child and Family Services Establishing a new First Nation Education System Advancing the Métis Nation Reconciliation Fostering Economic Development |
Implementation Risk: There is a risk that INAC may lack the ability and capacity to successfully implement new initiatives, while sustaining current program delivery.
| Risk response strategy | Link to the department's programs | Link to mandate letter, government-wide and departmental priorities |
|---|---|---|
|
Governance and Institutions of Government Rights and Interests of Indigenous Peoples Management and Implementation of Agreements and Treaties Education Social Development First Nations Individual Affairs Residential Schools Resolution Indigenous Entrepreneurship Community Economic Development Strategic Partnerships Infrastructure and Capacity Urban Indigenous Participation Northern Governance and People Northern Science and Technology Northern Land, Resources and Environmental Management Internal Services |
Implementing the Truth and Reconciliation commission's Call to Action Launch the engagement strategy for a National Reconciliation Framework Implementing a new fiscal relationship Advancing the Métis Nation Reconciliation Review of laws, policies and practices Modern treaties, self-government agreements and other key government structures Enhancing First Nations Child and Family Services Establishing a new First Nation Education System Open and Accountable Government |
Human Resources Capacity Risk: There is a risk that INAC managers may not be able to attract, develop and retain qualified, experienced and representative human resources in a timely manner and while sustaining program delivery.
| Risk response strategy | Link to the department's programs | Link to mandate letter, government-wide and departmental priorities |
|---|---|---|
|
Governance and Institutions of Government Rights and Interests of Indigenous Peoples Management and Implementation of Agreements and Treaties Education Social Development First Nations Individual Affairs Residential Schools Resolution Indigenous Entrepreneurship Community Economic Development Strategic Partnerships Infrastructure and Capacity Urban Indigenous Participation Northern Governance and People Northern Science and Technology Northern Land, Resources and Environmental Management Internal Services |
Open and Accountable Government Implementation of INAC Workplace Well-Being and Mental Health Strategy Implementation of an Indigenous Recruitment and Retention Framework |
Government Partnership Risk: There is a risk that INAC and its federal government partners may not effectively and efficiently collaborate in the development and delivery of policies and programs.
| Risk response strategy | Link to the department's programs | Link to mandate letter, government-wide and departmental priorities |
|---|---|---|
|
Governance and Institutions of Government Rights and Interests of Indigenous Peoples Management and Implementation of Agreements and Treaties Education Social Development First Nations Individual Affairs Residential Schools Resolution Indigenous Entrepreneurship Community Economic Development Strategic Partnerships Infrastructure and Capacity Urban Indigenous Participation Northern Governance and People Northern Science and Technology Northern Land, Resources and Environmental Management Internal Services |
Fostering economic development and employment Supporting sustainable development in the North and the expansion of the Nutrition North Canada program Implementing a new fiscal relationship |
Information for Decision-Making Risk: There is a risk that INAC may not have access to timely, relevant, complete and accurate information to: support policy, program and resource allocation decisions; monitoring and oversight of results and impacts of program investments; and, fulfill accountability, legal and statutory obligations.
| Risk response strategy | Link to the department's programs | Link to mandate letter, government-wide and departmental priorities |
|---|---|---|
|
Governance and Institutions of Government Rights and Interests of Indigenous Peoples Management and Implementation of Agreements and Treaties Education Social Development First Nations Individual Affairs Residential Schools Resolution Indigenous Entrepreneurship Community Economic Development Strategic Partnerships Infrastructure and Capacity Urban Indigenous Participation Northern Governance and People Northern Science and Technology Northern Land, Resources and Environmental Management Internal Services |
Implementing a new fiscal relationship Open and Accountable Government |
External Relationship Risk: There is a risk that INAC and the provinces, territories, local government, industry, academia, Indigenous Representative Organizations and NGOs will not effectively and efficiently partner to contribute to the delivery of its mandate.
| Risk response strategy | Link to the department's programs | Link to mandate letter, government-wide and departmental priorities |
|---|---|---|
|
Governance and Institutions of Government Rights and Interests of Indigenous Peoples Management and Implementation of Agreements and Treaties Education Social Development First Nations Individual Affairs Residential Schools Resolution Indigenous Entrepreneurship Community Economic Development Strategic Partnerships Infrastructure and Capacity Urban Indigenous Participation Northern Governance and People Northern Science and Technology Northern Land, Resources and Environmental Management Internal Services |
Implementing a new fiscal relationship Open and Accountable Government Modern treaties, self-government agreements, and other key governance structures Initiating permanent bilateral mechanisms Implementing the Truth and Reconciliation Commission's calls to action Advancing the Métis Nation Reconciliation |