Item 4G AudioIntegrity
Innovation
Accountability
Proactive & Balanced
Commitment to
Excellence
Risk Management
Item No. 4G
Au orize the City Manager to enter into a
si es agree ebb
f#
t assessm es.
./'
Managing Risk
Integrity— • What is Meant by Risk?
Innovation
Accountability
Commitment to Why We Should Care — The C
Excellence Landscape
• Who Should Be Involved?
• Southlake's Plan - A Proactive &
Balanced Risk Assessment Process
A Definition of Risk
L�MI The possibility of suffering harm or loss; danger.
Integrity
Innovation • A factor, thing, element, or course involving uncertain
danger; a hazard: "the usual risks of the desert.
Accountability rattlesnakes, the heat, and lack of water" (Frank Clancy).
Commitment to
Excellence
• a. The danger or probability of loss to an insurer. b. The
amount that an insurance company stands to lose.
• a. The variability of returns from an investment. b. The
chaMVonpayme
• One considered with reft possibility of loss: a
poor risk.
d.
Ul Z101 1171 ta 111
Competitor Financial Empowerment Govemance Strategic pr
Leadership Organizational Culture Environmental Scan
Customer Wants Price Authority/Limit Ethical Behavior Business Model
Interest Rate Outsourcing Board Effectiveness Business Portfolio
Technological Innovation Currency Performance Incentives Succession Planning Investment
Equity Change Readiness Valuation/Evaluation
Sensitivity Commodity Communications Organization Structure
Financial Instrument Reputation Measurement(Strategy)
Shareholder Expectations Image and Branding Resource Allocation
Stakeholder Relations Planning
Capital Availability Information Technology
Life Cycle
Li uidi Integrity Inte ri
Sovereign I Political 9
Cash Flow Access Mana ement Fraud Public Reporting
Opportunity Cost Availability Employee Fraud Financial Reporting
Concentration Infrastructure Third Party Fraud Evaluation
Legal
Illegal Acts Internal Control Evaluation"
Unauthorized Use Executive Certification
Regulatory Credit Taxation
Default Pension Fund
Industry Ouerations Regulatory Reporting
Concentration Customer Satisfaction Scalability Compliance
Settlement Human Resources Performance Gap Businesslntenuption
Financial Markets Collateral Knowledge Capital Cycle Time Product/Service Failue Operational
Product Development Sourcing Environmental Budget and Planning
Catastrophic Loss Efficiency Channel Effectiveness Health and Safety Product/Service Pricing
Capacity Partnenng Tmdemark/Bmnd Erosion
Contract Commitment
Measurement(Operations)
Alignment
Accounting Information
•0 II
Why We Should Care
• The Changing Landscape
Values
Integrity
Accoun'
Rating Agencies Citizens media
mitment-
cellence
amwork
Other external factors Organization Regulatory Community
GASB,AICPA,GAO,OMB
GFOA
Values
zpectati
Standards
1
m Expectations/
Standards I
� +I
Relative
Actual
o
v
v
x
w
2002 2007/2008
E_==-
Values
Well Defined 00iICI@S mittee
On -Going Training Risk Assessment
Independent Audit
7
Who Should Be
Involved?
Integrity -6 Everyone has a responsibility.
Innovation — All employees
Accountability
Commitment to — City Manager
Excellence
Teamwork — Mid -Management
— Department Heads
— City Council
0
•
•.
i i. . �•
Values
•
Entity -Wide Data
Analysis
High -Level Basic
Internal Audit Plan
Individual Assessments
(Random, Surprise Basis & On -Going)
Where Cash
Is Collected
Key
Processes/ Sensitive
Policies I Areas
Procedure
Central Cashier
Co is
T. ry Mgt TBD
Procu t Purch Cards
Utilities
Public Works
Contract Mgt Credit Cards
Pro erl Taxes T8E
Entity -Wide Risk Assessment
Integrity
Innovation
Accountability
Commitment to
Excellence
TeamworkQUESTIONS?
Call Sharen Jackson
(817) 748-8042