Enhancing the Role of Risk Management for and within the Catholic Church

Assessing    Risk  Program  

Diocese  Level  

Discovering    Best  Prac6ces  

Equipping  and  Sharing  

Assessing  Specific  Risks  

Parishes,  Schools,  Chari6es  

Discovering    Best  Prac6ces  

Equipping  and  Sharing  

Phase  I  –  Q2  

Phase  II  

Phase  III  

Phase  III    

Phase  IV  

Phase  IV  

Round  1  Complete  

Next  Steps  –  Where  Do  We  Go  From  Here?    

Current  Step  –  Phase  I:  Round  2  of  the  Benchmark  Study  &  Risk  Assessment  Planning  

Phase  II:  Detailed  risk  assessment  at  Diocese,  Parish,  School  and  Chari6es  level  

Enhancement Program Overview

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  

Benchmark Study Objectives

Diocese  

Assessing  Risk  Program  

Benchmark  Study  Key  Steps  –  Phase  I  

 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  

Key Benchmark Study Steps

Common Framework

Ownership  

Understanding  

Execu6on  

Element  1:  Clear  Risk  Accountabili?es  

Element  2:  Appropriate  Risk  Capabili?es  

Element  3:  Proac?ve  Risk  Iden?fica?on  

Element  4:  Comprehensive  Risk  Assessment  

Element  5:  Effec?ve  Risk  Management  Strategies  

Element  6:  Effec?ve  Risk  Monitoring  &  Repor?ng  

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  

Clear  R

isk  

Accoun

tabili6

es

Approp

riate  Risk    

Capa

bili6

es

Proa

c6ve  Risk    

Iden

6fica6o

n

Compreh

ensive  

Risk  Assessm

ent

Effec6v

e  Risk  

Mgm

t.    Strategies

Defined  (3)

Sustainable  (5)

Ad  Hoc  (1)

3.05 3.48 3.48

2.66

3.17 2.97

Framework  Element:  

Benchmark Study Findings Round 1 & 2 of the study

Effec6v

e  Risk  

Mon

itorin

g/Re

por6ng

3.31 3.55

3.44

2.64

3.35  

3.07

Risk  Benchmark  Study  Findings,  cont’d  

•  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.      

Data  Security

77%

...of respondents rated their data security processes “Sustainable” or a mix of “Sustainable” and “Defined.”

...of all respondents rated their risk analysis procedures “Ad Hoc” or a mix of “Ad Hoc” and “Defined.”

56%

Risk  Analysis

Benchmark Study Findings Round 2 of the study

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  –  Where  Do  We  Go  From  Here?                      Interac?ve  Group  Discussion  and  Input    

Collaborate  to  create  a  common  risk  language  for  Catholic  en??es  

•  risk  universe  and  risk  defini?ons    

Continue Phase I Work Risk Assessment Planning

Stakeholders  Mission   Returns  Achieving  the  Catholic  Church  mission   Appropriately  serving  all  stakeholders   Making  Disciples  

External/  Environment  

Organiza6on  Strategies/  Policies  

Process/  Execu6on  

People/  Culture  

Financial/  Repor6ng  

Technology/  Data  

1.  Compe?tor  2.  Legal  &  Regulatory  3.  Catastrophic  Loss  4.  Cost  Trends  5.  Stakeholder  Expecta?ons  6.  Terrorist  

7.  Strategy  &  Innova?on  8.  Capital  Alloca?on  9.  Church  Programs  10.  Organiza?on  Structure  11.  Organiza?on  Policies  

12.  Opera?ons  -­‐  Planning  13.  Opera?ons  –  Process  

Design  14.  Opera?ons  –  Process  

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  

23.  Leadership  Development  &  Succession  Planning  

24.  Skills/Competency  25.  Change  Readiness  26.  Communica?on  27.  Performance  Incen?ves  28.  Accountability  29.  Fraud  &  Abuse  30.  Child  Abuse  

31.  Performance  Management  

32.  Budge?ng/Financial  Planning  

33.  Accoun?ng/Tax  Informa?on  

34.  External  Repor?ng  &  Disclosure  

35.  Pricing/Margin  36.  Market  Intelligence  37.  Contract  Commitment  

38.  Technology  Infrastructure/Architecture  

39.  Data  Relevance  &  Integrity  40.  Data  Processing  Integrity  41.  Technology  Reliability  &  

Recovery  42.  IT  Security  

 Reputa?on  

• Brand  Value  • Public  Percep?on  • Stakeholder  Rela?ons  

 

 Market  Share  

•  Total  Parishioners  •  Engaged  Parishioners  •  Market  Penetra?on  •  Authen?city  

 

 Income  Growth  

• New  Sources  of  Contribu?ons/Dona?ons  

• Parishioner  Growth    

 Financial  Stewardship  • Breakeven  • Cash  Flow  • Avoiding  Surprises  

 

–  Coordinating All Aspects of Risk Sample Risk Universe

Next  Steps  –  Where  Do  We  Go  From  Here?                      Interac?ve  Group  Discussion  and  Input    

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  

Recap of Future Phases of Risk Management Enhancements for the Catholic Church

Next  Steps  –  Where  Do  We  Go  From  Here?  Interac?ve  Group  Discussion  and  Input    

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  

Recap of Future Phases of Risk Management Enhancements for the Catholic Church