School Of Computer And Information Sciences Chapter 15 Emb

School Of Computer Information Sciencesits 835chapter 15 Embedding

Develop an academic paper based on the following instructions: Summarize how the City of Edmonton integrated Enterprise Risk Management (ERM) into its strategic planning process, including the steps involved in identifying, scoring, and linking risks to strategic goals. Discuss the strategic risk management model recommended by the city, its outcomes, lessons learned, and implications for public sector organizations. Include analysis of Edmonton’s strategic planning history, links to other strategic tools like results-based budgeting, and the importance of organizational buy-in and culture for successful ERM implementation. Support the discussion with credible sources, providing references in APA format.

Sample Paper For Above instruction

The integration of Enterprise Risk Management (ERM) into strategic planning processes has become an essential practice for local governments seeking to enhance decision-making, align resources, and mitigate potential setbacks. The City of Edmonton, as a thriving urban center in Alberta, Canada, exemplifies this integration through a structured approach that embeds ERM into its long-term and operational planning. This paper explores Edmonton's strategic risk management framework, its implementation steps, outcomes, lessons learned, and broader implications for the public sector.

Historical and Strategic Context of Edmonton

Edmonton’s rich history dates back to its settlement as a fur-trading post in 1795, evolving into a significant economic hub driven by fur trade, railway development, and gold rushes (City of Edmonton, 2013). With a population exceeding 800,000 by 2013 and projected growth surpassing 900,000 by 2018, Edmonton's urban planning necessitated robust strategic frameworks to manage its growth sustainably (Edmonton Economic Development Corporation, 2019). The city’s governance spans provincial legislation under the Alberta Municipal Government Act, which guides its planning and risk management strategies.

Linkages to Strategic Planning and Tools

In Edmonton’s strategic planning, several tools complement ERM, notably results-based budgeting and capital budgeting models. These tools emphasize aligning fiscal resources with strategic goals, requiring careful risk assessment to prevent resource misallocation (Government of Alberta, 2017). The city’s strategic plan, “The Way Ahead,” emphasizes public input and expert consultation, making strategic priority-setting transparent and participative. This approach forms the basis for identifying risks that could derail strategic objectives.

Steps in Edmonton’s ERM Integration

The city adopted a phased approach in embedding ERM, consisting of five core steps:

1. Identifying Strategy: Utilizing “The Way Ahead,” Edmonton developed a clear set of long-term goals and strategic objectives, setting the foundation for risk analysis (City of Edmonton, 2015).

2. Identifying Key Risk Elements: Edmonton used a comprehensive risk category checklist to capture potential risks covering operational, strategic, financial, and compliance risks (ISO 31000, 2018).

3. Scoring Risk Elements: Risks were rated on impact and likelihood scales from 1 to 5, facilitating prioritization based on severity—an approach aligned with international risk management standards (AIRMIC, 2017).

4. Linking Programs and Risks: The city mapped programs and initiatives to strategic risks, employing results-based budgeting divisions to better manage and respond to risks (City of Edmonton, 2016).

5. Determining Indicators and Mitigation Actions: For each risk, Edmonton identified performance indicators and mitigation actions, assigning ownership to responsible departments for ongoing monitoring.

Recommended Strategic ERM Model

Edmonton’s model emphasizes tracing simplicity, risk prioritization through weighted scoring, and assigning responsibility. It involves identifying links between goals, objectives, and risks, assessing each risk’s likelihood and impact, and designing targeted mitigation strategies (Frigo & Anderson, 2016). This model facilitates proactive risk responses and resource allocation adjustments aligned with strategic priorities.

Outcomes and Lessons Learned

The implementation of ERM in Edmonton yielded multiple benefits, notably increased buy-in from senior leadership, fostering an organizational culture attentive to risk. The city noted the importance of cultivating a “risk-smart” culture and ensuring consistency across various departments. Challenges included the significant resource requirements and the necessity of dedicated subject matter experts, which underscored the importance of departmental accountability (Woods, 2018). Training and ongoing communication emerged as critical success factors.

Conclusion

Edmonton’s integration of ERM into its strategic planning demonstrates a practical, phased approach that aligns risks with strategic objectives and enables informed decision-making. Its experience highlights the significance of leadership support, organizational culture, and continuous improvement. As local governments face complex uncertainties, Edmonton’s model offers valuable insights into embedding enterprise risk thinking into strategic processes, fostering resilience and strategic agility.

References

  • AIRMIC. (2017). Risk Management Standard (ISO 31000). Risk Management Society.
  • City of Edmonton. (2013). About Edmonton. https://www.edmonton.ca/
  • City of Edmonton. (2015). The Way Ahead: Strategic Plan. https://www.edmonton.ca/strategicplan
  • City of Edmonton. (2016). Results-Based Budgeting. https://www.edmonton.ca
  • Edmonton Economic Development Corporation. (2019). Economic Overview. https://eedc.com/
  • Frigo, M. L., & Anderson, R. J. (2016). Strategic Risk Management. Strategic Finance, 98(2), 18-27.
  • Government of Alberta. (2017). Municipal Financial Sustainability. https://www.alberta.ca/
  • ISO. (2018). ISO 31000:2018. Risk Management — Guidelines. International Organization for Standardization.
  • Woods, M. (2018). Embedding ERM in Local Government: Key Lessons. Journal of Risk Analysis, 40(12), 2210-2222.
  • Wang, J., & Bowers, C. (2020). Improving Strategic Planning Through Enterprise Risk Management. Public Administration Review, 80(4), 629–638.

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