A presentation for the AURIMS Conference 2006, Albany Campus, Massey University Presentation by

1. Implementing a risk management framework – a case study It’s not rocket science….. A presentation for the AURIMS Conference 2006, Albany Campus, Massey University Presentation by Anne Walker, Risk Manager Massey University New Zealand

3. Presentation content • New Zealand Tertiary Sector – the context • Challenges we face • Massey University risk management framework • Our journey • Lessons we are learning

4. Post-graduate degrees post-compulsory education - $3 billion p.a. - 1.3% GDP structural change over last 5 years growth of wananga and PTE’s New ZealandTertiary Sector Research Universities (8) Polytechnics (20) College of Education (4) Wananga (3) Private Training Establishments (-600) Sub-degree Applied Training Skills

5. Government Fundingby Provider Type Source: Ministry of Education -2002

6. Tertiary Sector Reformin New Zealand • Excellence – Relevance – Access • Knowledge society • Tertiary Education Strategy (TES) • Focus on quality • New funding framework (e.g. PBRF) • Differentiation

7. Fiscal Reality Source: Scott & Scott (2004)

8. Implications for Universities in New Zealand Planning implications contribution to the government objectives Changes to the funding framework performance element student fee maxima Dependence on non-government revenue international students commercialisation entrepreneurial activities

9. Strategic New or emerging technologies Governance processes Commercialisation opportunities Excess capacity Quality academic programmes Increasing expectations of students Operational Accountability IP protection HR management Security Competition Student behaviour Contracting What’s driving risk in our Universities

10. Massey University

12. Strategic Risk Drivers • Government priorities • Funding changes • Demographic trends • Legislative change • Global economy • New teaching and IT technologies • Outcomes for Māori people • Environment

13. The Risk Management Challenge Achieving strategic goals Enterprise-wide Risk Management Managing hazards and compliance Financial Operations Management Strategy Business Risk Management Value Contributed • all risks • linkage to strategic goals • key governance tool for • governing bodies Risk Management Risk Management Perspective

14. Risk Management Framework Governing Body AS/NZS 4360 All Risks People Financial Legal Academic Moral Reputational Commercial Operational All Activities Parent & Subsidiaries Risk Drivers

15. Massey UniversityRisk Management Framework • Governance responsibilities • Risk identification and analysis • Risk control • Risk treatment • Performance review • Performance assurance

16. AS/NZS 4360 Risk Management Standard Establish the Context Identify Risks Monitor & Review Analyse Risks Communication & Consultation Access Risks Evaluate Risks Treat Risks

17. Massey UniversityPlanning Framework Charter  10 Year Plan  Profile (3 Year Plan)  Annual Plan  Performance Reporting Framework and Risk Management Framework

18. Activities supporting Implementation Pull Clear expectations Governance expectations Performance measurements against KPIs Risk reporting Annual audit of risk management systems Penalties, recognition and rewards Provision of senior management support Links to strategic planning Defined responsibilities competencies for identifying and reporting risk Education, awareness and training programmes (incl. risk workshops) Learning though application of risk/ knowledge management tools Push

19. Where have we got to?? Strategic Plans Investment analysis Enterprise-wide Risk Management Health and safety, compliance, policies Financial Operations Management Strategy Business Risk Management Value Contributed We are about here Risk Management Risk Management Perspective

20. Final thoughts …