SELECTING AN ERM FRAMEWORK
At the end of the second pilot, each department involved (Transportation Services for The Way We Move and Community Services for The Way We Live) was consulted to provide feedback on the process. As a result of the consultations it was decided to componentize the pm2 model, as some aspects were seen to add more value than others. In addition, the model as a whole was found to provide levels of complexity that, while useful, might preclude its successful implementation. Each individual component could then be compared with other frameworks.
During this time, staff from the Edmonton Police Service (EPS) met with the Financial Services staff and presented its ERM process, based on the ISO 31000 framework. By provincial law, EPS maintains a separate command structure, reporting to the City Council through the Edmonton Police Commission. Independently, the EPS had, over a span of five years, evolved a mature ERM process based on in-depth performance measurement tools and impetus from the Police Commission to proactively identify and treat its risks. The EPS felt at this time that it could offer to share its ERM model with other city departments on an operational level. This provided an incentive for the Financial Services department to compare the pm2 model with the ISO 31000 framework to determine a best solution going forward. A diagram of the ISO 31000 ERM process is found in Exhibit 15.9.
Comparison of pm2 and ISO 31000 Frameworks
After two pilots of the pm2 framework (with The Way We Move and The Way We Live), the ERM team evaluated the pilots to provide recommendations for strategic
Exhibit 15.9 ISO 31000 Enterprise Risk Management Process Chart
Source: Based on CAN/CSA-ISO 31000-10, Risk Management – Principles and Guidelines, International Standards Organization/Canadian Standards Association, 2009.
Exhibit 15.10 Comparison – pm2 Risk Scorecard versus ISO 31000 Model
ERM going forward. Elements were taken from ISO 31000 and the pilot project. A comparison of the two frameworks is found in Exhibit 15.10.