Business Administration 532

Risk Management

Background:

General:

The Lloydminster Public School Division (LPSD) acknowledges that all activity has associated with it an element of risk.  Due to the diverse nature of the Division’s operations including instruction and community service, and the fact that not all risks can be avoided or transferred to third parties through insurance policies, contracts or waivers, the management of risk at all levels of the organization is imperative.  LPSD is responsible for approving the Risk Management Policy, Framework and Risk Appetite Statement as well as endorsing and monitoring its effectiveness.  The Director of Education is responsible for ensuring effective risk management performance within the Risk Management Framework. 

Position Statement:

LPSD will manage risk to protect the Division community and its assets and will maintain a proactive, long-term and sustainable Enterprise Risk Management strategy as summarized in the Risk Management Framework (Appendix A).  When appropriate and cost effective, LPSD will seek to share risk with third parties through the use of insurance policies, waivers and contracts.  LPSD will ensure that risk associated with emergency preparedness and business continuity is addressed in appropriate plans.

Purpose:

LPSD is committed to building increased awareness and a shared responsibility for risk management at all levels of the organization.  A clearly defined Risk Management Administrative Procedure (AP) including a Risk Appetite Statement (Appendix B) supports this commitment.  This AP is intended to assist in decision making processes that will minimize potential losses, improve the management of existing uncertainty and the approach to new opportunities, thereby helping to maximize the Division’s available resources.

Scope:

Compliance with AP’s extends to all members of the LPSD community.

 

Definitions:

Members of the LPSD Community:  

Includes employees, students, contractors, volunteers and others.

  • Employees are persons on the payroll of LPSD
  • Students are persons enrolled at LPSD
  • Contractors are persons working under a contract or agency relationship
  • Volunteers are persons who perform an unpaid service for LPSD
  • Other members of the general public attending our facilities for reasons other than outlined above

Risk:  

The effect of uncertainty on objectives. Risk is measured in terms of likelihood and impact.

Risk Appetite (Risk Tolerance):  

The amount and type of risk that an organization is prepared to pursue, retain or take.

Risk Management:  

Coordinated activities to advise and guide an organization with regard to risk.

Risk Management Framework:  

A set of components that provide the foundations and organizational arrangements for designing, implementing, monitoring, reviewing and continually improving risk management throughout the Division.

The foundations include the policy, objectives, mandate and commitment to manage risk.

The organizational arrangements include plans, relationships, accountabilities, resources, processes and activities.

The risk management framework is embedded with the institution’s overall strategic and operational policies and practices.

 

Procedures:

ADMINISTRATIVE PROCEDURE SUPPORTS

Appendix A - Risk Management Framework - currently under development

Appendix B - Risk Appetite Statement - currently under development

 

Reference:

CAN/CSA-ISO 31000:2010

Adopted: 

December 2015