Enterprise Risk Management
The Enterprise Risk Management Key Initiative carries over from the previous F&B strategic plan. In the past three years, the initiative has taken significant steps to raise the profile of thought processes in making "risk-adjusted" decisions at the University—within and outside F&B. Although much foundational work has been set in motion, many employees may not yet be fully aware of the initiative’s specifics or how it affects them. Through the strategic plan implementation, we will raise awareness and provide tools to be used in decision-making processes to improve the University’s ability to better achieve its core missions of education, research, and public service.
Vision
The Enterprise Risk Management Key Initiative is working to create a risk-aware culture, permitting the University to ensure an effective means to identify, measure, control, and assign responsibility to manage risks, while encouraging the acceptance of reasonable opportunities.
Accomplishments
- Interviews of 55 key leaders throughout the University to identify risks.
- Categorization of these risks by likelihood of occurrence and severity of impact.
- Selection of several risks for initial review with the units most directly associated with the risks.
- Evaluation of the ongoing management of those risks and opportunities for enhancement of programs to manage risks already in place.
Goals
- Provide tools to the University’s community members to enable them to make better risk- adjusted decisions in their daily activities.
- Raise awareness throughout the University community, to improve understanding that it’s everyone’s responsibility to "look before you leap."
- Embed the concept of "management of risk" into the University’s overall planning processes.
- Sponsor training through the Human Resources Development Center on the principles of managing decisions to minimize risk (HRDC Course LDR-201).
- Use communication tools such as Faculty/Staff Newswire articles, an electronic newsletter, enhanced web site, and group presentations on topics of interest.
- Although the concept of enterprise risk management is well tested in financial institutions and manufacturing businesses, there are few models for successful implementation of this type of program in academic institutions. We will benchmark more broadly with other industries and develop appropriate metrics applicable to our institution.
Metrics and Timeline
- Timeline: As of June 2009, HRDC training sessions are scheduled in March and September 2009 and are also being scheduled by request for individual groups; and Faculty/Staff Newswire articles are ongoing.
- Metrics: Beyond measuring communication and training efforts, the initiative will develop specific success measurement tools through benchmarking with other institutions.
Key Initiative Manager
Gary Langsdale — Office of Risk Management
814-865-6308 - gwl3@psu.edu
Team Members
Mark Bodenschatz — Intercollegiate Athletics - mab163@psu.edu
Paula Congelio — Penn State Fayette - prc12@psu.edu
Maurine Claver — Environmental Health & Safety - mgc3@psu.edu
Dan Heist — Office of Internal Audit - dph3@psu.edu
John Keller — Office of International Programs - jmk13@psu.edu
Stan Latta — Auxiliary & Business Services - sxl1@psu.edu
Ken Lehrman — Affirmative Action - kfl2@psu.edu
Clifford Lutz — University Police - cel3@psu.edu
Bob Maney — Office of Human Resources - rlm1@psu.edu
Rich Pearce — Auxiliary & Business Services - rhp1@psu.edu
Lisa Powers — University Relations - lmr8@psu.edu
Ron Rash — Information Technology Services - rhr@psu.edu
Rachel Smith — Office of the Provost - rem4@psu.edu
Candice Yekel — Office of Research Protection - cay3@psu.edu
Of Counsel
John May — The Milton S. Hershey Medical Center - jem14@psu.edu
