Mason Initiatives: Efficiency & Effectiveness

Transcript:Mason Initiatives: Efficiency & Effectiveness:
Mason Initiatives: Efficiency & Effectiveness Enterprise Risk Management Beth Brock, Associate VP & Controller George Mason University May 21, 2010 1 Agenda Efficiency & Effectiveness (E&E) How we got started and the process Where we are now, observations, questions Enterprise Risk Management (ERM) Overview How we got started and the process Where we are now, survey, questions 2 E&E Initiative Late 2010 - some members of BOV requested All administrative functions in scope; academics excluded Spring 2011 - explored big firm and boutique/trade assn approaches 3 E&E Study Advice Do not underestimate: Disruption in workplace Time and effort to do properly Impact on employee moral Expect to make an investment 4 E&E Evolution Issued RFP for benchmarking services in seven administrative areas: Auxiliaries & Affiliated Entities Facilities Information Technology Purchasing Enrollment Services Human Resources Accounting & Finance 5 RFP for Benchmarking Services Selection criteria emphasized higher ed experience, recommended benchmarks required Goal - inform a decision on areas for E&E review Search committee: Controller; Director IA&MS; Fiscal Projects Director Two firms selected for oral presentations Senior VP and Chief of Staff attended orals 6 Benchmarking Project Huron Consulting selected for 3-4 month project: Reviewed data on budgets and staffing Interviewed unit heads Confirmed benchmarks Performed benchmarking and analysis Delivered final report – functioning efficiently and effectively Discussing next phase for some opportunities 7 Efficiency & Effectiveness Observations and Questions 8 ERM Defined Enterprise Risk Management (ERM) is generally defined as: a process, effected by an entity’s board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risks to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives1. 1Standard ERM Model content adapted from: Committee of Sponsoring Organizations of the Treadway Commission 9 ERM Framework Categorization of risks: Strategic – organizational goals Operations – executing objectives Financial/Reporting – safeguarding assets Compliance – adherence with laws and regs. Reputational – public image Cultural – character of university and personnel 10 ERM Initiative at Mason Late 2009 - BOV interested in risks other than financial risks Spring 2010 - Controller’s office and IA&MS collaborated to survey approx. 80 unit heads Responses reviewed, consolidated, reviewed again, 32 items presented to BOV 11 ERM Evolution Funding for next steps in FY11 budget Issued RFP for assistance with designing a sustainable ERM program