Meeting of the Board of Visitors Audit, Compliance and Risk Committee
June 12, 2015
ACADEMIC DIVISION
ENTERPRISE RISK
MANAGEMENT (ERM)
GARY NIMAX
A S S I S TA N T V I C E P R E S I D E N T F O R C O M P L I A N C E
AND ENTERPRISE RISK MANAGEMENT
Presentation Schedule of ERM Mitigation Strategies
Detailed Risk
Review with Board of Visitors
Management of human capital
February 2015 (update with metrics in June)
Legal compliance risks (federal/state/other)
June 2015
Organizational Excellence
June 2015
Sufficient funding/resources to achieve goals
June 2015
Reputation with key stakeholders
September 2015
Cybersecurity/leveraging IT
September 2015
Safety/security of students, faculty and staff
September 2015
Changes in higher education
November 2015
Geo-political and economic risks
November 2015
3
Achieve Competitive Compensation
Risk Category
Management of Human Capital
Risk Description
The University’s faculty compensation must be competitive with top AAU peers
Risk Owner
Provost
Mitigation Strategies Currently in Place
• At its February 2013 meeting the Board of Visitors approved a resolution supporting the goal of raising average
faculty salaries into the Top 20 among UVa’s Association of American University (AAU) peers by June 2017.
Due Date
June 2015
Action Plans
• Monitor University’s position in AAU rankings.
Responsible Person
Provost
(on schedule)
Key Performance Indicators
• UVa’s position in AAU rankings with respect to faculty
salaries
Results
• As of 6/30/11:
• As of 6/30/12:
• As of 6/30/13:
• As of 6/30/14:
• As of 6/30/15:
#31
#29
#32
#27
#28
4
Manage Generational Turnover in Faculty
Risk Category
Management of Human Capital
Risk Description
The University must effectively manage the generational turnover in faculty
Risk Owner
Provost
Mitigation Strategies Currently in Place
• Identify hiring priorities, adjusting institutional and professional incentives for interdisciplinary hires.
• Recruit continuously to more accurately identify high-potential faculty, build stronger relationships with
targeted candidates, and close recruitment efforts successfully.
• Leverage current talent and new faculty hiring opportunities to focus research on those intellectual and social
challenges where it can have the most impact.
Due Date
July 2015
Responsible
Person
Provost
Action Plans
• Annually, the Provost will work with deans and faculty to develop hiring plans
that are coordinated across schools as part of the annual budget process.
Sept. 2015 • Assess recruiting and retention performance annually.
Provost
June 2015 • Include in annual Academic Division budget the estimated cost of faculty hires
Provost and
(on schedule)
COO
including start-up packages.
Key Performance Indicators
Results
• Achieving target number of faculty hires included in school plans • TBD
• Yield on offers made
• TBD
• Success rate on retention offers
• TBD
• Related costs in annual budget
• $10.5 million for FY16
5
Effective Succession Planning
Risk Category
Management of Human Capital
Risk Description
The University must have effective succession planning
Risk Owner
Provost (for faculty); Chief Operating Officer (for staff)
Mitigation Strategies Currently in Place
Faculty
• Enhance institution-wide infrastructure and support of faculty to:
o Enhance their development as teachers and leaders in the University community.
o Encourage and support research, creative arts, scholarship and innovation.
Staff
• Continue to enhance and expand Center for Leadership Excellence programs in leadership, career
development, professional skills, and technical training.
• Continue to expand the high-potential staff succession development program.
Due Date
Sept. 2015
Sept. 2015
June 2015
(on schedule)
June 2015
(on schedule)
Action Plans
• Develop training program for faculty department chairs to focus on
development of management skills.
• Launch course development institute through Teaching Resource
Center to focus on development of faculty teaching skills.
• Expand high-potential staff succession development program with
new cohort of 25 staff.
• Complete robust career paths linked to each staff job family.
Key Performance Indicators
• Faculty and staff retention rates
• Percentage of open positions filled by internal candidates
TBD
TBD
Responsible Person
Vice Provost for Faculty
Affairs
Vice Provost for Academic
Affairs
Vice President for Human
Resources
Vice President for Human
Resources
Results
6
Effectively Pursue Organizational Excellence
Capitalize on organizational excellence – resource alignment and optimization.
The University must have efficient services, processes, and procedures to effectively use and
steward its resources in support of mission activities.
Chief Operating Officer
Risk Owner
Mitigation Strategies Currently in Place
• Leadership of OE by dedicated full-time professional staff.
• OE governance council led jointly by academic and administrative leadership.
• Project portfolio that includes functional reviews and process redesigns supported by a foundational benchmarking
study of key business processes.
• Aggressive targets for OE are integrated into annual budget process.
Risk Category
Risk Description
Due Date
Oct. 2015
Action Plans
• Development of web-based portal and dashboard to support efficient life
cycles of research awards from pre-proposal to program completion.
Ongoing
• Strategic sourcing of procurement for high quality customer service and to
achieve volume discounts.
Jan. 2016 • Create shared center of excellence for University and Foundation gift
processing.
June 2015 • Finalize design and begin implementation of future state HR model.
(on schedule)
June 2016
Oct. 2015
• Complete consolidation of email systems and continue consolidation of IT
servers and data centers.
• Implement fully automated travel and expense management system.
Responsible Persons
Office of Sponsored
Programs
Director of
Procurement
Treasurer
Vice President for
Human Resources
Chief Information
Officer
Director of
Procurement
VP for HR and VP for
Mgmt and Budget
Sept. 2015 • Develop detail plan for addressing JLARC recommendations on span of
control and procurement.
Key Performance Indicators
Results
• Total savings of $150 million over
• Achieved savings of $19.5 million in FY 15 and targeted savings of
FY15-22
$12.7 million in FY 16.
7
Maintain Sufficient Funding/Resources to Achieve Goals
Risk Category
Financial Risk
Risk Description
UVa must have sufficient resources to pursue strategic programs and maintain core programs.
Risk Owner
Chief Operating Officer
Mitigation Strategies Currently in Place
• Financial performance monitored against Multi-Year Financial Plan.
• Monitoring implementation of Cornerstone Plan.
Due Date
July 2015
June 2015
Action Plans
• Annually update Multi-Year Financial Plan.
• Report progress on Cornerstone Plan to BOV.
Responsible Person
AVP for Finance
President
(on schedule)
Spring 2016 • Finalize plan for Bicentennial Campaign and obtain BOV approval.
Spring 2016 • Complete plan for University research enterprise with focus on
investment and growth.
Key Performance Indicators
• Annual performance against Multi-Year Financial Plan
• Annual philanthropy results Bicentennial Campaign
• Growth in research enterprise
• Endowment performance reports
Senior VP for Development
Vice President for Research
Results
• TBD
• TBD
• TBD
• TBD
8
Comply with Federal, State, or Other Established Regulatory Requirements
Risk Category
Legal compliance risks (state/federal/other)
Risk Description
Risk Owner
UVa must comply with federal, state, university, or other established regulatory requirements
Chief Operating Officer and General Counsel
Mitigation Strategies Currently in Place
• Established institutional compliance program using the best practice elements of a successful program:
1. Compliance standards and procedures;
2. Oversight by high-level personnel, with periodic reporting.
3. Due care in delegating substantial discretionary authority;
4. Effective communication to all levels of employees;
5. Systems for monitoring, auditing and reporting;
6. Consistent enforcement of compliance standards; and
7. Reasonable steps to respond to and prevent offenses.
• General oversight of all compliance functions through Assistant VP reporting to EVP/COO.
• Appropriate compliance policies across all major areas of risk – health system, research, athletics, human
resources, finance, etc.
• Close working relationship with Internal Audit to coordinate monitoring activities.
• University helpline for reporting compliance issues.
Action Plans
• Compliance reports reviewed with Audit Committee.
• Enhance University compliance with Clery Act and Title IX.
o Hire full-time Clery and Title IX Coordinators
o Appoint and train campus security authorities across Grounds
o Complete final policy on “Sexual Misconduct” and implement
supporting processes and procedures.
Results
Key Performance Indicators
• Number of significant compliance exceptions in FY15-16 • TBD
Due Date
Ongoing
Fall 2015
Responsible Person
AVP for Compliance/ERM
President, EVP-COO,
General Counsel, and
Vice President for Student
Affairs
9