Vision a stronger Canada whose spirit is raised by its passion for sport, culture and sustainability Values

• Mission

• To touch the soul of the nation and inspire

• the world by creating and delivering an extraordinary

• Olympic and Paralympic experience with lasting legacies

• Vision

• A stronger Canada whose spirit is raised by

• its passion for sport, culture and sustainability

• Values

• Team | Trust | Excellence | Sustainability | Creativity

What’s involved in organizing the Games? Some of the many areas VANOC was responsible for planning include:

• What’s involved in organizing the Games? Some of the many areas VANOC was responsible for planning include:

• Accommodation
• Accreditation
• Construction
• Culture and Ceremonies
• Food Services
• Medical Services
• Press Operations
• Security
• Sport
• Ticketing
• Transportation
• Venue Operations
• Volunteer Recruitment and Training
• Waste Management

Stakeholders include:

• Stakeholders include:

• Government of Canada

• Government of British Columbia

• Local governments

• International Olympic Committee

• International Paralympic Committee

• Canadian Olympic Committee

• Olympic Paralympic Committee

• Sponsors

• Broadcasters

• Spectators

• Athletes

Olympic athletes and team officials 6,500

• Olympic athletes and team officials 6,500

• Paralympic athletes and team officials 1,350

• Participating countries—the Olympic Games 82

• Participating countries—t he Paralympic Games 42

• Tickets available for 2010 events 1.6 million

• Accredited media 10,800

• Games volunteers 26,000

• Television viewers (estimated) 3.5 billion

• Visits to vancouver2010.com 275 million

Audit Committee

• Audit Committee

• The overall VANOC Risk Management framework and elements, including Enterprise Risk Management (ERM)

• Finance Committee

• Budget risk, including foreign exchange risk

A general definition:

• A general definition:

• ERM is a systematic, comprehensive and ongoing approach to identifying and managing all types of risk on an organization-wide or enterprise basis

• Standard definition:

• ISO, COSO, AU / NZ

• ERM signifies:

• the adoption of risk management throughout the organization;

• the management of exposures to loss not only in conventional hazard categories, but the full spectrum of strategic, operational and administrative risk. It is essentially a decision process for managing uncertainties and effectively allocating resources.

Generic and applicable to diverse lines of business

• Generic and applicable to diverse lines of business

• Holistic; addresses all types of risk (strategic, financial, operational, hazard, reputational) in all parts of the organization

• Continuous process

• Addresses both risks and opportunities

• Effected by people at every level of an organization

• Aims to enhance value for stakeholders

• Considers established disciplines, such as contingency planning, disaster recovery planning or emergency response planning, insurance, internal audit, loss prevention, to be specific treatments within the wider ERM process.

No single best approach

• No single best approach

• Strong, visible and communicated support from the top of the organization

• Each organization must develop an approach which best fits its values, objectives, culture and constraints

• Build it into existing business processes and practices

• Bottom-up as well as top-down

• Incremental approach

• Rigorous, but not overly complicated

• Dynamic and responsive

• Collaborative and not too prescriptive

• Demonstrate value

Strong, visible and communicated commitment from the board and senior management

• Strong, visible and communicated commitment from the board and senior management

• Establishment of context and objective setting

• Risk identification

• Risk analysis (probability or liklihood of occurrence, severity of impact, quantification, prioritization)

• Risk tolerance and risk treatment or mitigation development

• Ongoing control, monitoring, review, adjustment

Robust

• Robust

• All 53 functions
• All 14 construction venues
• All 24 operating venues, competition and major non-competition
• All 20 sport (test) events
• Global or corporate

• Integrated

• Functional interdependences identified & communicated
• Direct partner risks identified for construction venues
• Shared risks (Olympic / urban domain)

• Holistic

• Strategic
• Financial
• Operational
• Reputational
• Hazard

Dynamic

• Dynamic

• Regular Risk Register review & updating
• Risk retirements
• New reporting

• Top Down and Bottom-up

• Executive, Senior Leadership, Board
• Functions and venues

A RISK is something that might happen which could have a negative impact on VANOC

• A RISK is something that might happen which could have a negative impact on VANOC

• An ISSUE is something that has happened or is happening which could have a negative impact on VANOC.

• Risk Statement: cause and effect

• Internal and external

• Various sources

For each identified risk:

• For each identified risk:

• Probability of Occurrence
• Scale of 1 (very unlikely) to 5 (almost certain)
• Severity of Impact
• Scale of 1 (minimal) to 5 (massive)
• Common measures established
• Overall Risk Rating
• Probability of occurrence X severity of impact
• Scale of 1 to 25
• Ratings of 12 and above = Top Risks

Financial risks tend to be more easily quantified

• Financial risks tend to be more easily quantified

• Subjective ranking may be all that can be done for some risks – don’t overly complicate!

• Quantifying can be particularly difficult for low probability / high severity risks

Risk tolerance often defined in terms of impact on earnings or budgets; revenue loss and/or cost increase relevant for VANOC, also reputation and operational readiness

• Risk tolerance often defined in terms of impact on earnings or budgets; revenue loss and/or cost increase relevant for VANOC, also reputation and operational readiness

• With VANOC’s risk tolerance as a guide; evaluate risks and decide to:

• Monitor
• Treat or mitigate
• Reduce probability of occurrence
• Reduce severity of impact
• Transfer
• Avoid

• Develop strategies and action plans to treat the risks

Major Risk Report

• Major Risk Report

• The “Global” or corporate risks
• Reviewed monthly with the Executive Team and updated as required

• Top Risks Summary Report

• By division/function
• Risks with an overall rating of 12 or higher
• Include low probability/high severity risks
• Reviewed monthly by each EVP for his/her division

• Function and Venue Construction Risk Register

• For all 53 Functional Areas and each construction venue
• Plus a Global Risks section
• In-depth review and updating with Functional Areas and division heads on a six-month rotating divisional schedule

• Venue Operating Risk Registers created in tandem with Venue Operating Plans

• Overdue, Current and Pending Risk Mitigation Actions Report

• Reviewed monthly by Executive Team
• Executive Team sees the report for all divisions

• Register of Retired Risks

• Reviewed with each division during six-month in-depth reviews
• Indicates date and reason risk was retired, and by whose authority

• Internal Audits - Annual Audit Plan—approved by Audit Committee

• - Regular in camera meetings with Audit Committee

• Consulting Reviews - Proactive reviews initiated at the request of Management

• Loss Control/Prevention

• Crisis Management Plan

• Disaster Recovery Plan

• Contingency Plans

• Emergency Response Plans

• for all venues, for both construction and operational phases

• This was a complex and risky project

• Many moving parts
• Many stakeholders
• Many external and shared risks

• How to handle?

• Emphasis on identifying all types of risks and mitigating / managing them
• Monthly meetings with Executive Team to review major risks
• Rotating monthly in-depth reviews with functions—every six months
• Monthly reporting of top risks, and overdue/current/pending mitigation actions to all divisions and functions
• Risk-based approach for internal audit and business continuity planning
• Plans for managing risks which could not be fully mitigated

• In a fast-paced, very diverse organization, keeping ERM
• current, relevant, and useful at all levels.
• - Some risks became issues.
• VANOC was the first OCOG to fully implement and sustain
• an ERM framework. This has been recognized by the IOC
• and other OCOGs, and the VANOC model has become the
• standard to be followed.
• The 2010 Games are regarded as having been highly
• successful—ERM and the strong risk management culture
• which was pervasive in VANOC contributed to this outcome.