TEAM R.E.D.

RISK INTELLIGENCE DEVELOPMENT

EMBRACING INTELLIGENT RISK TAKING•

R.E.D.Urgency

FEAR NOTRISK AVERSION STIFLES

INNOVATION

RISK AVERSION OPPRESSES OPPORTUNITIES

RISK AVERSION LEADS TO STAGNATION

BE RISK SMART

Innovate

Serve

Lead

A RISK INTELLIGENT STATE OF CALIFORNIA

• 240,000+ Civil Servants actively managing risk for the State

• Data-driven decision making is second nature

• Replicates the success of FTB’s Enterprise Data to Revenue Project throughout the State

• Manages unanticipated risk events effectively

• Innovates faster and more successfully

• Moves as quickly as the private sector

INCENTIVES

•TIME

•PUBLIC SERVICE

•EMPLOYEE

DEVELOPMENT

WHY RISK INTELLIGENCE?• TIME SAVINGS

• MONEY SAVINGS

• EXCELLENCE IN CUSTOMER SERVICE

• OPPORTUNITY FOR STREAMLINING PROCESSES

• CREATE TIME AND FUNDS FOR EMPLOYEE DEVELOPMENT

• REDUCE RISK TO CALIFORNIANS

• INCREASE PUBLIC AWARENESS AND TRUST

RESOURCES• DEVELOP RISK INTELLIGENCE RESOURCES

• FACILITATE RISK INTELLIGENCE

• EMPOWER ALL LEVELS OF YOUR ORGANIZATION

• RECOGNIZE AND TAKE DECISIVE ACTION(S)

RESOURCESKEY COMPONENTS

• Advanced methodologies

• Smart tools (RBS, Risk Dashboard, SME network, collaboration

portal)

• Allows for easier identification of positive (strengths/opportunities)

and negative (weaknesses/threats) risks for future innovation

• Occurs between all levels of the organization

• Open source, free use

• Empowers state community collaboration

PLANNING

WE MUST PLAN TO ASSESS AND MANAGE POTENTIAL RISKS

FAILING TO PLAN MEANS PLANNING TO FAIL

PLANNING• ENGAGE STAKEHOLDERS

• TONE AT THE TOP

• DON’T DELAY, BE PROACTIVE

• EXPLORE OPTIONS

• ADVANCE BEYOND NORMS

• SEEK MEANINGFUL FEEDBACK

• BE AGILE IN APPROACH

• REWARDS NOT PENALTIES

Reluctance = Reactiveness

Be Deliberate In Assessing and Managing Risk.

R.E.D.

ACCOUNTABILITY

WITHOUT ACCOUNTABILITY, THERE WILL BE NO CHANGE

STATE LEADERSHIP ACCOUNTABILITY ACT (SLAA)

• SLAA STRENGTHS

• ESTABLISHED BY LEGISLATION

• EFFECTIVE SYSTEM OF INTERNAL

CONTROLS

• REPORTS & EFFECTIVENESS

• PROVIDES IMPORTANT TOOLS FOR RISK

MANAGEMENT

• SLAA WEAKNESSES

• PROMOTES RISK AVERSION (AFRAID TO

ADMIT PROBLEMS)

• COMPLIANCE IS NOT REQUIRED

• REPORTING IS SUBJECTIVE & UNDEFINED

ACCOUNT FOR THE MISSING PIECES• DOCUMENTATION

• REVIEWS

• EVALUATIONS

• IMPROVEMENTS

• REPORTING

• MONITORING

• REWARDS / CONSEQUENCES

For SLAA to truly work, the agency needs to be willing to “look into the mirror” and honestly self-evaluate.

ACCOUNTABILITY

WHAT SHOULD WE MEASURE?

• COMPLIANCE – SLAA

• ATTACH COMPLIANCE GOALS AND TARGET DATES FOR ACHIEVEMENT OF DEPARTMENTAL REPORTING

• RISK INTELLIGENCE WITHIN THE STATE WORKFORCE

• PROVIDE TRAININGS TO DEVELOP THIS SKILL

• TEST THE SKILLS TO MEASURE HOW EFFECTIVELY IT IS BEING LEARNED

• CULTURAL BUY-IN

• SURVEYING STAFF TO UNDERSTAND WHAT IS WORKING OR WHAT NEEDS TO BE REFINED

RECOGNITIONDEVELOPING A RISK INTELLIGENT CULTURE REQUIRES

ENCOURAGING, REWARDING, AND REINFORCING RISK

INTELLIGENCE

RECOGNITION• KEY COMPONENTS

• PROMOTION OF TRANSPARENCY

• REINFORCEMENT OF LESSONS LEARNED, GOOD AND BAD

• ALLOWS FOR IDENTIFICATION OF OPPORTUNITIES FOR

FUTURE INNOVATION

• OCCURS BETWEEN INDIVIDUALS’ AND ORGANIZATIONS’

INTERACTIONS

• MUST BE ITERATIVE AND PRACTICED DAILY IN ORDER TO

BE EFFECTIVE

Where to apply

• Individual employees’ efforts

• Groups’ efforts

• Departmental efforts

• Cross-departmental efforts

THE KEY IS TO LEARN FROM OUR EFFORTS, AND IDENTIFY THE FACTORS WHICH LEAD

TO SUCCESS OR UNDERPERFORMANCE

• EMPLOYEE PERFORMANCE

REVIEWS AND AWARDS

• AUDIT FINDINGS

• SOCIALIZING EFFORTS’

“LESSONS LEARNED”

• INCREASED WORKPLACE

DISCRETION, FOR EMPLOYEES

AND ORGANIZATIONS

• BUDGETARY AWARDS

• INCREASED TRAINING

AVAILABILITY

Recognition comes in different forms

RECOMMENDATIONS

• ADMINISTRATION AND

LEGISLATURE

• TOP TO BOTTOM BUY-IN

• CULTURE CHANGE

• TRAINING

The Pathway to Risk Intelligence

RECOMMENDATIONS

• DASHBOARD & WEB PORTAL

• WEB-BASED INSTRUCTIONAL

TUTORIALS

• LIVE BLOG & FORUM TO IMPROVE

RISK PLANNING, RESPONSE AND

EVALUATION LIFE CYCLES

Risk Breakdown Structure

• Focus on positive & negative risks

• Scalable to any organization’s size and needs

Training

• Mandatory annual risk intelligence and management training

• Risk intelligence assessments

Sponsorship

• Endorse risk intelligence as a priority for the state

• Create Risk Improvement Team, build M&E systems for risk intelligence

• Top to bottom buy-in

TEAM R.E.D.

RISK INTELLIGENCE DEVELOPMENT

THANK YOU! QUESTIONS?