Purpose

1. The Evolving ERM Ecosystem at UC Riverside Purpose Provide an Overview of the Evolution of the Enterprise Risk Management (ERM) Ecosystem at UC Riverside from the early efforts of reacting & responding to the drafting & modifying of an effective compliance & ethics annual work plan & enterprise risk management maturity work plan to the current focus of developing a coordinated & comprehensive methodology with the goal of having a campus culture of ingrained shared governance, responsive risk management, & collaborative compliance.

2. The Evolving ERM Ecosystem at UC Riverside Learning Objectives Objective 1: Provide an Overview of the ERM Model at UCR Objective 2: Provide Insights to the Importance of Campus- Wide Collaboration Objective 3: Identify the Challenges & Opportunities in Starting & Maintaining an Effective & Energized Campus ERM Program

3. The Evolving ERM Ecosystem at UC Riverside Practical Overview Where have we been?

4. The Evolving ERM Ecosystem at UC Riverside Practical Overview Where are we at?

5. The Evolving ERM Ecosystem at UC Riverside Practical Overview Where are we going?

6. The Evolving ERM Ecosystem at UC Riverside Practical Terms Compliance Compliance is either a state of being in accordance with established guidelines, specifications, or legislation or the process of becoming so. (What we are required to do)

7. The Evolving ERM Ecosystem at UC Riverside Practical Terms • Tartan Pride • Integrity • Excellence • Accountability • Respect Ethics The basic concepts & fundamental principles of decent human conduct. (What we should do) UC Standards of Ethical Conduct

8. The Evolving ERM Ecosystem at UC Riverside Practical Terms Risk A probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, & that may be avoided through preemptive action. (What we must & should be aware of)

9. The Evolving ERM Ecosystem at UC Riverside Practical Terms Risk Management (RM) The identification, analysis, assessment, control, & avoidance, minimization, or elimination of unacceptable risks. (What we do to optimize effectiveness in achieving objectives)

10. The Evolving ERM Ecosystem at UC Riverside Practical Terms Internal Controls Process for assuring achievement of an organization's objectives in operational effectiveness & efficiency, reliable financial reporting, & compliance with laws, regulations, & policies. (What we do to check on effectiveness in achieving our mission)

11. The Evolving ERM Ecosystem at UC Riverside Practical Terms Enterprise Risk Management (ERM) Process, effected by entity’s board of directors, management, & other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, & compliance. (What we do to optimize effectiveness in achieving objectives) http://www.ucop.edu/enterprise-risk-management/procedures/what-is-erm.html

12. The Evolving ERM Ecosystem at UC Riverside Practical Terms Shared Governance "The University has a dual-track system of authority & responsibility which presumes that faculty members are best qualified to chart the University's educational course, while administrators are most competent to direct its finances & organization. In practice, these domains are overlapping & interdependent. To function successfully together, faculty & administrators depend upon a high degree of consultation, trust, mutual respect, & a tradition of collegiality." (Collaboration in UCR 2020 The Path to Preeminence)

13. The Evolving ERM Ecosystem at UC Riverside System Historical Overview UCOP ECAS Oversight (Beginning in Fall 2007) Establish & Champion System-Wide C&E Program

14. The Evolving ERM Ecosystem at UC Riverside System Historical Overview UC Ethics & Compliance Risk Council Monthly Meetings with Campus CECOs

15. The Evolving ERM Ecosystem at UC Riverside System Historical Overview UCOP ECAS Organization (2008)

16. The Evolving ERM Ecosystem at UC Riverside System Historical Overview UC System-Wide Compliance (2008)

17. The Evolving ERM Ecosystem at UC Riverside Campus Historical Overview 2009-2010 ECRAC Charter (July 2009) Provide Campus Oversight to UC E&C Program Advises SVP/Chief Compliance & Audit Officer thru UC E&C Risk Council Quarterly Meetings Co-Chaired by Campus EVC&P & CECO Facilitated by Director of A&AS Committee Membership Comprised of 20 Senior Campus Reps Responsible for Overall Campus Culture Identify & Implement Tools, Metrics, & Processes to Effectively Monitor Climate Encourage Awareness of Compliance & Open Lines of Communication Monitor Effectiveness & Consistency of Compliance Track Effectiveness of Risk Assessment Tools Advise on Guidance, Education, & Training Provide Quarterly & Annual Campus Compliance Reports to UC Ethics & Compliance Risk Council SVP/Chief Compliance & Audit Officer

18. The Evolving ERM Ecosystem at UC Riverside Campus Historical Overview 2009-2010 Commissioned 2009 by CECO Providing Oversight of Campus ERM Chaired & Facilitated by RM Director Advises Campus ECRAC Meets Quarterly Membership of 20 Comprised from Major Functional Areas Establish Common Language for Managing Campus Risk Collaborate on Comprehensive & Balanced Approach to Identify & Manage Risks Provide Assurance ERM Decisions are Aligned with Campus Vision & Goals Communicate Strategies to Respective Stakeholders Responsible for Campus Overall ERM Program (Implementation, Metrics, & Monitoring) Advise on Need for Campus-Specific P&Ps, Training as it Relates to Specific Risk Areas Review Risk Areas of High Priority & Proposed Risk Mitigation Activities

19. The Evolving ERM Ecosystem at UC Riverside Campus Historical Overview 2009-2010 Commissioned in 2000 Advises, Consults, & Participates with Campus EH&S on Programs & Standards for Safe Conduct of Teaching & Research Issues Related to Research & Lab Safety Effective Operational Strategies with Institutional Bio-Safety Committee Radiation Safety Committee Institutional Animal Care & Use Committee Institutional Bio-Safety Committee Institutional Review Board Pesticide Safety Committee Other Related Committees Monthly Meetings Chaired by Faculty Member Facilitated by Campus EH&S Director Membership of 23 Comprised from Major Functional Areas Campus Executive Committee Provided Annual Briefing

20. The Evolving ERM Ecosystem at UC Riverside Campus Historical Overview 2009-2010 Reacting & Responding Campus Compliance Program Highlights A&AS, RM, & CECO Not Yet Actively Collaborating

21. The Evolving ERM Ecosystem at UC Riverside ERWG Members Initially Identified 39 Risks within 10 Risk Categories

22. The Evolving ERM Ecosystem at UC Riverside Campus Historical Overview 2009-2010 Reacting & Responding RM Drafts First Campus ERM Maturity Work Plan UCOP RS (Developed & Adopted in 2009) Five Components Internal Environment/Objective Setting Event Identification/Risk Assessment Risk Responsibility/Control Activity Information & Communication Monitoring Input from Several Risk Focus Areas in Campus E&C Annual Work Plan Challenge in Fully Understanding COSO Model Connection Among Three Plans not Strong UCOP RS Tasks Campuses with Completing HERA Workbook Formal ERM Process Not Yet In Place Ad-Hoc Committee in Place Addressing ERM Issues for Past Four Years ECRAC Designated to Provide Campus Oversight through E&C Program Strategic Goals Also Used to Address Alignment with ERM Objectives

23. The Evolving ERM Ecosystem at UC Riverside 2010

24. The Evolving ERM Ecosystem at UC Riverside 2010

25. The Evolving ERM Ecosystem at UC Riverside Campus Historical Overview 2010-2011 UCOP ECAS Provides Template for Developing E&C Annual Work Plan ERWG Identifies 28 Risk Focus Areas in 7 General Risk Categories Reporting to UCOP ECAS on Quarterly Basis is On-Going Challenge

26. The Evolving ERM Ecosystem at UC Riverside Campus Historical Overview 2010-2011 E&C Annual Work Plan 12 Risk Focus Areas Recommended for Tracking & Reporting

27. The Evolving ERM Ecosystem at UC Riverside Campus Historical Overview 2010-2011 UCOP ECAS Distributes E&C Services Program Policy (February 2011) Providing Program Guidance Annual E&C Work Plan Procedures Annual Report Requirement Annual Education Plan Confidential Reporting Mechanisms RM Becomes Familiar with Available ERM Activities & Tools

28. The Evolving ERM Ecosystem at UC Riverside Campus Historical Overview 2011-2012 Identifying Key Components/Players/Activities UCOP ECAS Provides Guidance to Report on Select Critical Risk Focus Areas ERWG Solicits Input from Campus Departments with Risk Assessment Template ERWG Reviews Risk Focus Areas Using UCOP ECAS Template 33 Risk Focus Areas Identified Quarterly Reports Remains Work-In-Progress CECO Submits Campus E&C Annual Work Plan Narrative & Work Plan UCOP RS Provides Summary of ERM Maturity Work Plan Efforts for Campuses RM Drafts Campus Enterprise Management Maturity Work Plan RM Director Works with CECO Rep with Goal of having Both Plans in Synch A&AS, RM, & CECO Reps Meet to Discuss UCR IA 2010-2011 Annual Report

29. The Evolving ERM Ecosystem at UC Riverside Audit & Advisory Services Risk Assessment & Audit Planning Timeline Prepare Draft Plan Assess Current Plan Status Data Gathering /Analysis Complete Risk Assessment Model Revise Draft Plan • A&AS Tools • Interviews • E&C Annual Work Plan • Risk Focus Assessment Work Sheets • Data Analytics • Internal & External Sources ECRACApproves Final Plan ECRACApproves Draft Plan

30. The Evolving ERM Ecosystem at UC Riverside Audit & Advisory Services Audit Plan Development Timeline March March 17 April May May 23 Assess Current Plan Status /Revise Draft Plan Draft Plan Approved by ECRAC Draft Plan to UCOP Final Plan Approved by ECRAC Final Plan Reviewed by Regent’s Audit Committee Draft Plan Reviewed by Regent’s Audit Committee

31. The Evolving ERM Ecosystem at UC Riverside Audit & Advisory Services Audit Risk Assessment Methodology Data Gathering & Analysis Interviews with Management & Staff Data/Financial Analysis Ethics & Compliance Annual Work Plan Risk Focus Assessment Work Sheet Campus Committees Prior Internal & External Audit Coverage Complete Risk Assessment Model Universe of Processes, Functions, Units Scoring Universe Using Predictive Factors

32. The Evolving ERM Ecosystem at UC Riverside Campus Historical Overview 2012-2013 Refining Reporting Tools/Establishing Collaboration UCOP ECAS Provides Campuses System-Wide E&C Annual Work Plan UCOP RS Tasks Campuses with Updating HERA Workbook ERWG Identifies & Recommends Tracking & Reporting on 8 Risk Focus Areas ERM Maturity Work Plan Built with Input from E&C Annual Work Plan A&AS Director/RM Director/CECO Reps Meet to Compare & Contrast Respective Plans

33. The Evolving ERM Ecosystem at UC Riverside Campus Historical Overview 2012-2013 E&C Annual Work Plan

34. The Evolving ERM Ecosystem at UC Riverside Campus Historical Overview 2013-2014 Identifying & Implementing a Process Implementing an E&C/ERM Process UCOP ECAS Provides RAP Timeline FY2013-2014 CECO Provides UCOP ECAS Rating Tool for FY 2013-2014 CECO Calls for First E&C Focus Group ERWG Members Provided RFA Worksheet at May Meeting E&C Focus Group & ERWG Recommend Tracking & Reporting on 9 Risk Focus Areas CECO Presents E&C Annual Work Plan Assessment at ECRAC Meeting in June ECRAC Reviews & Prioritizes Risk Focus Areas CECO Submits Campus E&C Work Plan in June to UCOP ECAS CECO Works with Stakeholders to Put Together Metrics & Plans CECO Conducts Quarterly Reviews of E&C Annual Work Plan CECO Drafts ERM Maturity Work Plan CECO Meets Quarterly with A&AS Director & RM Director FRMP Work PlanDrafted & Approved (First Plan to Use COSO Model)

35. The Evolving ERM Ecosystem at UC Riverside Campus Historical Overview 2013-2014 E&C Annual Work Plan

36. The Evolving ERM Ecosystem at UC Riverside System Historical Overview UCOP ECAS Organization (2014)

37. The Evolving ERM Ecosystem at UC Riverside 2014

38. The Evolving ERM Ecosystem at UC Riverside 2014

39. The Evolving ERM Ecosystem at UC Riverside Current Efforts 2014-2015 Reviewing & Revising the Process UCOP ECAS UCOP RS ECRAC E&C Focus Group E&C RFA Worksheet ERWG RM CECO A&AS E&C Annual Work Plan ERM Maturity Work Plan Internal Audit Work Plan E&C Clearinghouse Website

40. The Evolving ERM Ecosystem at UC Riverside Moving Forward ERWG Involvement ECRAC Commitment CECO Champion ERM Website Research School of Medicine

41. The Evolving ERM Ecosystem at UC Riverside Moving Forward Heat Maps, Balanced Scorecards, Data Dictionaries http://www.ucop.edu/enterprise-risk-management/procedures/objective-setting/using-the-balanced-scorecard.html

42. The Evolving ERM Ecosystem at UC Riverside The science of examining raw data with the purpose of drawing conclusions about that information. Moving Forward Data Analytics

43. The Evolving ERM Ecosystem at UC Riverside Moving Forward UCOP RS MMR http://www.ucop.edu/enterprise-risk-management/tools-templates/ermis/index.html

44. The Evolving ERM Ecosystem at UC Riverside • ERMIS Objectives Include: • Better Quantitative Analysis Capabilities • Improved Analytical & Reporting Capabilities • Support for Leading Risk Governance & Compliance Processes • System-Wide Visibility, with Local Flexibility • Scalability without additional burden on UC staff Moving Forward UCOP RS ERMIS http://www.ucop.edu/enterprise-risk-management/tools-templates/ermis/ermis-dashboards.html

45. The Evolving ERM Ecosystem at UC Riverside Moving Forward Sharing Within UC

46. The Evolving ERM Ecosystem at UC Riverside Moving Forward-One Step at a Time Challenges/Opportunities

47. The Evolving ERM Ecosystem at UC Riverside Committed Risk Owners

48. The Evolving ERM Ecosystem at UC Riverside Systematically Prioritizing Risks

49. The Evolving ERM Ecosystem at UC Riverside UCOP ECAS/RS Continued Guidance & Collaboration /

50. The Evolving ERM Ecosystem at UC Riverside • Contact Information • Nida Niravanh: nniravan@uci.edu • Greg Moore: greg.moore@ucr.edu • Tim Willette: tim.willette@ucr.edu Move Forward with Purpose