Enhancing the Role of Risk Management for and within the Catholic Church
Enhancement Program Overview Next Steps – Where Do We Go From Here? Round 1 Complete
Current Step – Phase I: Round 2 of the Benchmark Study & Risk Assessment Planning
Phase I – Q2
Assessing Risk Program
Phase III
Phase IV
Discovering Best Prac6ces
Equipping and Sharing
Diocese Level
Phase II
Parishes, Schools, Chari6es
Phase III
Assessing Specific Risks
Discovering Best Prac6ces
Phase II: Detailed risk assessment at Diocese, Parish, School and Chari6es level
Phase IV
Equipping and Sharing
Benchmark Study Objectives Benchmark Study Objec?ves – Phase I
ü Iden6fy key strengths and challenges of today’s Diocesan risk management processes ü Build a risk process founda?on leading to common diocesan risk language ü Set the stage for the iden?fica?on, codifica?on and sharing of risk management best prac6ces and improvement ideas to help dioceses manage risk most effec?vely
Key Benchmark Study Steps Benchmark Study Key Steps – Phase I
Assessing Risk Program Diocese
1. Establish a common framework 2. Customize the diagnos?c tool 3. Administer the diagnos?c 4. Analyze the diagnos?c results 5. Report the benchmark findings
Common Framework Element 6: Effec?ve Risk Monitoring & Repor?ng
Element 5: Effec?ve Risk Management Strategies
Execu6on
Element 1: Clear Risk Accountabili?es
Ownership
Element 2: Appropriate Risk Capabili?es
Understanding Element 4: Comprehensive Risk Assessment
Element 3: Proac?ve Risk Iden?fica?on
Key Benchmark Demographics: 1. Round 1: 26 par?cipa?ng dioceses 2. Round 2: 81 total dioceses par?cipated (including round 1) 3. Broad na?onal geographic coverage 4. Mix of dioceses with and without dedicated risk manager role 5. Good mix of large, medium and small dioceses Addi?onal Highlights and findings to come
Ad Hoc (1)
Framework Element: Defined (3) 3.44
3.05 2.66 2.64
Effec6ve Risk Monitoring/Repor6ng
3.48
Effec6ve Risk Mgmt. Strategies
3.55
Comprehensive Risk Assessment
3.48
Proac6ve Risk Iden6fica6on
3.31
Appropriate Risk Capabili6es
Clear Risk Accountabili6es
Benchmark Study Findings Round 1 & 2 of the study
Sustainable (5)
3.17 3.35 2.97 3.07
Benchmark Study Findings Risk Benchmark Study Findings, cont’d Round 2 of the study
Data Security
77% ...of respondents rated their data security processes “Sustainable” or a mix of “Sustainable” and “Defined.”
Risk Analysis
56% ...of all respondents rated their risk analysis procedures “Ad Hoc” or a mix of “Ad Hoc” and “Defined.”
• Par?cipants rated themselves reasonably strong when it comes to their iden?fica?on of risks • Assessing the risks iden?fied and determining their level of impact and likelihood was iden?fied as a significant improvement opportunity.
Benchmark Study Benefits The Benefits of this ini?a?ve are: • A confiden?al, custom report for each diocese concerning their diocesan risk management process and program; • A na?onal peer group benchmark report reflec?ve of the par?cipa?ng dioceses across the country; • Expert insights and findings to help iden?fy poten?al gaps in diocesan risk management processes and programs; and • Opportuni?es to share and benefit from diocesan-‐level risk management best prac?ces and tools. • Par?cipa?on in the broader ini?a?ve to enhance the role of risk management for and within the Catholic Church, at the (arch)diocese, parish, school and charity levels
Next Steps – WContinue here Do We Phase Go From Here? I Work Interac?ve Group Discussion Planning and Input Risk Assessment
Collaborate to create a common risk language for Catholic en??es • risk universe and risk defini?ons
– Coordinating All Aspects of Risk Sample Risk Universe
Organiza6on Strategies/ Policies
External/ Environment
1. Compe?tor 2. Legal & Regulatory 3. Catastrophic Loss 4. Cost Trends 5. Stakeholder Expecta?ons 6. Terrorist
Process/ Execu6on
7. Strategy & Innova?on 12. Opera?ons -‐ Planning 8. Capital Alloca?on 13. Opera?ons – Process 9. Church Programs Design 10. Organiza?on Structure 14. Opera?ons – Process 11. Organiza?on Policies Execu?on & Con?nuity 15. Resource Capacity & Alloca?on 16. Vendor/Partner Reliance 17. Program Effec?veness 18. Interdependency 19. Stakeholder Sa?sfac?on 20. Regulatory Compliance & Privacy 21. Knowledge/Intellectual Capital 22. Change Integra?on
Reputa?on • Brand Value • Public Percep?on • Stakeholder Rela?ons
Market Share • • • •
Total Parishioners Engaged Parishioners Market Penetra?on Authen?city
People/ Culture
23. Leadership 31. Development & Succession Planning 32. 24. Skills/Competency 25. Change Readiness 33. 26. Communica?on 27. Performance Incen?ves 34. 28. Accountability 29. Fraud & Abuse 35. 30. Child Abuse 36. 37.
Income Growth • New Sources of Contribu?ons/Dona?ons • Parishioner Growth
Financial/ Repor6ng
Technology/ Data
Performance Management Budge?ng/Financial Planning Accoun?ng/Tax Informa?on External Repor?ng & Disclosure Pricing/Margin Market Intelligence Contract Commitment
38. Technology Infrastructure/ Architecture 39. Data Relevance & Integrity 40. Data Processing Integrity 41. Technology Reliability & Recovery 42. IT Security
Financial Stewardship • Breakeven • Cash Flow • Avoiding Surprises
Mission
Stakeholders
Returns
Achieving the Catholic Church mission
Appropriately serving all stakeholders
Making Disciples
Next Steps of – W here DPhases o We Go of From Here? Recap Future Risk Management IEnhancements nterac?ve Group Dfor iscussion and Input the Catholic Church Phase II: o Engage dioceses in a guided risk assessment, iden?fying the impact, likelihood, and risk management effec?veness of relevant key risk types o Include in the scope of this guided risk assessment the specific risks relevant to the deeper level of the parishes, schools, and charitable en??es that fall under a typical diocese
Next Steps of – W here DPhases o We Go of From Here? Recap Future Risk Management Interac?ve Group Discussion Input Church Enhancements for theand Catholic Phase III: • Iden?fy and codify best risk management ac?vi?es, tools, prac?ces, efficiency mechanisms and cost-‐reduc?on strategies employed at various dioceses, parishes and schools to reduce the level of unintended or unwanted risk exposure Phase IV: • Deploy best prac?ce sharing and equipping mechanisms to help dioceses effec?vely manage key risks, and proac?vely stay ahead of the curve on the growing issues and exposure areas for the Church