Week 7: Tools Used In ERM And Week 8 E

N Week 7 We Took A Look At Tools Used In Erm And In Week 8 Erm Strat

N Week 7, we took a look at tools used in ERM, and in Week 8 ERM Strategy is discussed with a focus on the City of Edmonton. You will note in the Week 8 video lecture there is the application of the Value Map Tool. For this discussion, you are to use the Strategic Document for the City of Edmonton link found in the Week 8 Content folder. From this document, select two categories for this discussion. You will note the tabs at the top of the online site as these are the categories (e.g., Attractions & Events, City Government, etc.) for your selection. For the categories you have selected, discern at least two strategic risks for each category. Develop a value map for one category and apply a Zurich Risk Tool for the other category.

Paper For Above instruction

The City of Edmonton’s strategic planning documents provide a comprehensive overview of its priorities, risks, and strategic frameworks across various categories such as Attractions & Events, City Government, Infrastructure, and Community Services. For this discussion, I have selected "City Government" and "Infrastructure" as the two categories to analyze. Each category presents unique strategic risks that could impact the city’s operations and services. By applying different risk assessment tools, such as a value map for one category and the Zurich Risk Tool for the other, we can deepen our understanding of the strategic challenges faced by Edmonton and develop effective mitigation strategies.

Strategic Risks in City Government

The City Government category encompasses the administrative and policy-making functions essential for city operations. Two significant strategic risks in this category include:

1. Political Instability and Leadership Changes: Political shifts, including elections and leadership turnovers, can affect policy continuity, project implementation, and stakeholder trust. This risk undermines long-term strategic planning and could lead to delays or shifts in priorities (Wang & Zhou, 2020).

2. Regulatory and Legislative Changes: Amendments to provincial or federal regulations may impose new compliance requirements, increase costs, or restrict operational flexibility. An example includes changes in environmental laws impacting urban development projects (Smith, 2019).

Strategic Risks in Infrastructure

The Infrastructure category involves the physical assets and systems necessary for urban life, including transportation, utilities, and public facilities. Two critical risks include:

1. Infrastructure Deterioration and Maintenance Backlog: Aging infrastructure presents a risk of failure, safety hazards, and service disruptions. Insufficient maintenance funding can exacerbate these issues, impacting service quality and public safety (Johnson, 2021).

2. Natural Disasters and Climate Change Effects: Increased frequency and severity of floods, storms, and heatwaves threaten infrastructure resilience. Climate-related risks can cause damage, disrupting essential services and incurring substantial recovery costs (Brown & Wilson, 2022).

Applying a Value Map to City Government Risks

The value map is a strategic tool that illustrates how various activities, investments, or initiatives contribute to the overall value creation and strategic objectives of an organization or category. For City Government, developing a value map involves identifying key activities that support governance, policy implementation, transparency, and stakeholder engagement (Kaplan & Norton, 2004).

For example, the value map for City Government’s risks might focus on the link between leadership stability, policy consistency, and citizen trust. The central value drivers include maintaining transparent processes, fostering stakeholder engagement, and ensuring policy continuity. Activities such as public communication, policy review sessions, and stakeholder consultations are mapped to these drivers, emphasizing their role in mitigating political instability and legislative risks.

The value map would clearly demonstrate how investments in effective communication channels and stakeholder engagement mechanisms increase trust and reduce risks associated with political instability. Additionally, establishing clear leadership succession plans and continuous policy review processes can further preserve stability and ensure the city’s strategic objectives are met despite political changes.

Applying the Zurich Risk Tool to Infrastructure Risks

The Zurich Risk Technique (also known as Zurich Risk Method) involves a structured process to identify, assess, and prioritize risks based on their frequency and potential impact. Applying this tool to infrastructure risks involves several steps:

1. Risk Identification: Identifying potential failure points such as aging bridges, high-voltage utilities, or drainage systems vulnerable to flooding.

2. Risk Analysis: Estimating the likelihood of failure or damage and the potential consequences on public safety, city services, and financial costs. For example, assessing the probability of a flood damaging critical utilities during extreme weather events (Zurich Insurance Group, 2017).

3. Risk Evaluation: Prioritizing risks based on their analyzed severity and likelihood. Risks like flood damage to underground utilities may be rated as high priority due to their low probability but catastrophic impact.

4. Risk Treatment: Developing mitigation strategies such as infrastructure upgrades, resilient design standards, and emergency response planning.

Applying the Zurich Risk Tool provides a quantifiable framework to focus resources on the most critical infrastructure vulnerabilities. It emphasizes the importance of integrating risk mitigation into the city’s capital planning, reinforced by climate change adaptation strategies and maintenance programs.

Conclusion

Edmonton’s strategic risks across city government and infrastructure categories reveal the interconnected challenges related to governance stability and physical asset resilience. By employing strategic tools such as the value map for understanding internal drivers of value and the Zurich Risk Tool for prioritizing infrastructure risks, city planners and decision-makers can develop targeted strategies to mitigate threats effectively. Ensuring robust risk management frameworks supports Edmonton’s broader goals of sustainable growth, public safety, and quality of life for its residents.

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References

  • Brown, T., & Wilson, A. (2022). Climate Change and Urban Infrastructure Resilience. Journal of Urban Planning, 45(3), 240-255.
  • Johnson, P. (2021). Aging Infrastructure Management Strategies. Infrastructure Journal, 19(4), 102-115.
  • Kaplan, R. S., & Norton, D. P. (2004). Strategy Maps: Converting Intangible Assets into Tangible Outcomes. Harvard Business Review Press.
  • Smith, L. (2019). Regulatory Impacts on Urban Development. Urban Law Review, 53(2), 78-94.
  • Wang, J., & Zhou, Q. (2020). Political Stability and Public Sector Performance. Public Administration Review, 80(5), 752-763.
  • Zurich Insurance Group. (2017). Zurich Risk Management Principles. Zurich Publications.

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