A New Way of Looking at Risk
What is MIRA?
Maricopa Integrated Risk Assessment (MIRA)
is the Chancellor’s initiative aimed at assessing
and managing risks and opportunities for
MCCCD.
The environment in which higher educational institutions operate has
changed dramatically within the past 10 years, and these institutions
now face new and growing challenges. Every day, campuses struggle
with the effects of diminishing resources and conflicting public
expectations. Managing the reality of these growing and new
challenges requires focused strategies and the ability to manage
continuously increasing competition, change and risk. To guide
colleges and universities through this complex set of new realities, it
is critical to understand and embrace the institutional risks that
accompany a changing business environment.
Support from the Top
In March 2000, our
Governing Board, with
support from the Chancellor
and the Chancellor's
Executive Council (CEC),
approved the MIRA project
as an initiative to embed
ongoing risk assessment and
management into the
MCCCD’s daily operations
and culture.
In October 2003, Dr. Glasper assigned responsibility for the MIRA
project to the MCCCD Risk Manager and asked that she develop and
initiate a multi-year implementation plan.
Dr. Glasper established the
following Goals for MIRA:
•
Increased overall effectiveness and accountability
•
Sound business process; greater assurance of
business continuity
•
Clear demonstrated compliance with the applicable
laws and regulations
•
Enhanced employee empowerment and pride
•
Reinforcement of strong cultural identity
•
Enhanced competitive advantage
Evolution of Risk Management
Traditional Risk Management (TRM) is defined as the original form of
risk management focusing on insurable losses and/or specific
functional areas of an organization.
Risk Management has evolved from insurance buying when methods
other than insurance buying began to be used to treat risk exposures.
Originally the scope of risk management was narrowly defined to
include only accidents that resulted in a loss. In the 1980’s, as
sophisticated risk financing became an important alternative to
insurance, risk management expanded to include other risk transfer
and risk control strategies.
The evolution continues as the focus of traditional risk management
expands into enterprise risk management (ERM), an integrated
comprehensive approach to addressing risks that may threaten the
achievement of an organization’s strategic objectives. The ERM
framework enables management, working without silos, to
collaboratively identify, assess and manage future risks and
opportunities, individually and across the organization.
Evolution of Risk Management
MIRA integrates Traditional Risk
Management (TRM) and Enterprise
Risk Management (ERM)
MIRA blends concepts from both
traditional risk management and
enterprise risk management into a
comprehensive risk management
program.
Evolution of Risk Management
Enterprise Risk Management (ERM) is an integrated
approach to assessing and addressing all risks that
threaten achievement of the organization’s strategic
objectives. The purpose of ERM is to understand,
prioritize and develop action plans to maximize benefits
and mitigate top risks.
In order to attain the highest probability of success in implementing
ERM, the following must be present:
•Top-level support, commitment, and participation;
•Adequate breadth and depth for participation within the organization;
•The process of risk assessment must become institutionalized so that
the entire institution becomes involved and has ownership of the
outcomes within the organization;
•Understanding that ERM is a continuous process, not a one-time event.
MIRA was created to
embed risk assessment
and management into
MCCCD’s daily
operations to
minimize surprises and
maximize opportunities
and be more
responsive to the
ever-changing needs of
the students and
communities we serve.
MIRA seeks to identify risks as well as
opportunities
Most successful, innovative and exciting ideas are
born because someone took a risk. MIRA has been
created to help understand the opportunities and
minimize the consequences of the risks we take.
What is Risk?
a) The combination of the probability of
an event and its consequences. Risk is
inherent in all types of undertaking,
and may carry the potential for benefit
or be a threat to success.
b) The opportunities, uncertainties,
Risk is measured in terms of
threats, or barriers to which MCCCD
consequences
and to
likelihoods.
must
respond in order
achieve its
objectives.
What is Risk Assessment?
Risk assessment is determining
the impact of an identified risk
on the organization.
Risk Assessment
…is
evaluating the
opportunities
and risks
associated
with starting
a new
Veterinary
Medicine
Program at
your college.
Weighing the Risks and the
Opportunities?
Risk: Animals on campus increase risks with
the likelihood of bites, disease transmission,
etc.
Opportunities: A new Veterinary Medicine
Program enhances the college’s curriculum,
fills a need in the community and increases
FTSE.
In Summary
MIRA seeks to
embed risk
assessment and
management
into the District’s
daily operations
so as to minimize
surprises and
maximize
opportunities.
MIRA is aimed
at assessing
and managing
risks…
…as well as
opportunities.
MIRA opens the door for all
employees to identify, assess
and manage future risks and
opportunities.
MIRA seeks to
break down
traditional risk
management’s
silo approach
to managing
risks.
MIRA asks every
employee to identify
risks and opportunities
within their work areas and
treat them accordingly.
We stand to be among an elite
group of higher education
institutions in our efforts to
break down the limitations of
the “silo approach” to
managing risks by integrating
traditional risk management
and ERM.
MIRA will
make our
District more
responsive to
the everchanging
needs of the
students and
communities
we serve.
Success depends on the
cooperative response from
employees on every level:
individually and throughout our
institution.
Assessment tools are
available to help
every employee
identify and chart
risks within their
work environments.
Thank you for reading this tutorial.