Site Loader
Day 1 Module 1 PIH ERM Training


>>HELLO, EVERYONE, AND THANK
YOU FOR COMING TODAY. I AM THE PRINCIPAL DEPUTY
ASSISTANT SECRETARY FOR THE OFFICE OF PUBLIC AND INDIAN
HOUSING IN THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOP.
. I’M HERE TO SHARE MY ENTHUSIASM
FOR THE PROGRAM UNDERWAY IN PIH AND TO ENCOURAGE YOU TO EMBRACE
PRINCIPLES IN YOUR DAY-TO-DAY WORK AT HUD.
AS YOU KNOW, PIH HAS A MISSION TO HOUSE, AS WELL AS A
RESPONSIBLE TO USE, TAXPAYER MONEY WISELY.
SINCE OUR OFFICE IN PROGRAMS MAKEUP THREE QUARTERS OF THE HUD
BUDGET, PIH MUST USE RESOURCES WHERE THEY CAN HAVE THE GREATEST
IMPACT. ENTERPRISE RISK MANAGEMENT
ALLOWS US TO IDENTIFY OUR RISKS IN LEVELS WITHIN PIH AND MANAGE
RISKS AS A GROUP, INSTEAD OF INDIVIDUALLY OR IN FINALS.
BY IDENTIFYING OUR RISKS, EARLY ON, IN MANAGING THEM BETTER, WE
CAN REDUCE THE AMOUNT OF TIME WE’VE SPENT FIREFIGHTING AND
INCREASE THE AMOUNT OF TIME WE SPEND PLANNING FOR THE FUTURE.
AS AN ORGANIZATION, WE MUST BE AWARE OF OUR BIGGEST RISKS AND
POSSIBLE UP SIDES AND DOWN SIDES THAT CAN OCCUR.
WE
SPENT MANY MONTHS DEVELOPING FRAMEWORK FOR THE PROGRAM, IN
BENCH MARKING IT WITH OTHER AGENCIES AND WITH INDUSTRY
PROFESSIONALS FROM THE ASSOCIATIONS FROM FEDERAL
ENTERPRISE RISK MANAGEMENT. A PIH RISK WORKING GROUP MET
THROUGHOUT 2014. SO VET THE PROPOSED FRAMEWORK.
THE STRUCTURE THAT HAS EMERGED INCLUDES A RISK COMMITTEE,
COMPRISED OF PIH’S MISSION ACROSS OUR OFFICE.
OUR EFFORTS ARE CONSIDERED A RAPIDLY RISING PRACTICE AMONG
OUR AGENCY PEERS. WE’RE LEADING THE FIELD AS ONE
OF THE ONLY HANDFUL WITH A TRUE ERM PROGRAM WHICH INVOLVES
INVOLVEMENT FROM ALL PARTS OF THE ENTERPRISE AND OFFERS A MORE
COMPREHENSIVE UNDERSTANDING. THE PIH TRAINING YOU’LL
PARTICIPATE IN IS A CRUCIAL UNDERTAKING TO DEVELOP A
RISK-AWARE CULTURE WITHIN OUR OFFICE.
ERM IS INTENDED TO BE IMPLEMENTED AT ALL LEVELS AND
ACROSS ALL DIVISIONS OF PIH AND YOUR PARTICIPATION IS KEY.
AFTER THIS TRAINING, YOU SHOULD UNDERSTAND THE HISTORY, PURPOSE,
AND CURRENT IMPLEMENTATION OF ERM WITHIN PIH AND BE ABLE TO
FULLY PARTICIPATE IN A RISK ASSESSMENT.
YOU SHOULD ALWAYS BE ABLE TO ASSESS A HOUSING AUTHORITY’S
PERFORMANCE, AND IT’S RISKS. IN 2015, WE FACILITATED TRAINING
SESSIONS IN TEN CITIES NATIONWIDE, WITH ALMOST 800
EMPLOYEES ATTENDING. I EXPECT MORE TO TAKE ADVANTAGE
OF THIS WITH THE AVAILABILITY OF THIS WEB CAST RECORDING.
I AM THRILLED BY THE HIGH LEVELS OF ATTENDANCE IN HEADQUARTERS
AND THE FIELD AND ENCOURAGED BY THE EAGERNESS TO APPLY IT’S
PRINCIPLES TO OUR DAY-TO-DAY WORK.
I ENCOURAGE EACH OF YOU TO CONTINUE LEARNING ABOUT ERM
AFTER TODAY AND TO CONSIDER HOW YOU CAN APPLY PRINCIPLES YOU
WILL LEARN TO MAKE THE OFFICE OF PUBLIC AND INDIAN HOUSING A
STRONG, HEALTHY ORGANIZATION FOCUSED ON OUR MISSION TO
PROVIDE DECENT, SAFE, SANITARY AND AFFORDABLE HOUSING AS WELL
AS OUR COMMITMENT TO USE OUR FUNDING WISELY.
THANK YOU FOR BEING PART OF THIS.
>>GOOD MORNING, EVERYONE. I DIDN’T KNOW I WAS COMING TO
THIS ROOM BUT I’M HAPPY TO BE HERE, I’M TAKING AN OPPORTUNITY
TO LEARN ABOUT THE ENTERPRISE RISK MANAGEMENT INITIATIVE.
I’VE BEEN ASKED TO DELIVER A KEY MESSAGE AND I’M PROUD TO TAKE A
MEMENT TO DO THIS. LAST SEVERAL YEARS OF REDUCED
FUNDING AND INCREASED WORK LOAD REQUIRED PIH TO FIND INNOVATIVE
WAYS TO MANAGE OUR BUSINESS. 18 MONTHS AGO, PIH ADOPTED THIS
PROGRAM THAT IS DESIGNED TO IDENTIFY OUR OPERATIONAL,
COMPLIANCE, FINANCIAL REPORTING AND STRATEGIC RISKS AND MANAGE
THEM AS A PORTFOLIO. PIH IS ESTABLISHING THIS ERM
PROGRAM WHICH IDENTIFIES RISK THROUGH MONITORING OF KEY RISK
INDICATORS. TO IMPREMENT THE PROGRAM WE’VE
CREATED THE RISK DECISION THAT IS DEDICATED TO TO IDENTIFYING,
ANALYZING AND REPORTING ON RISK. AND A RISK COMMITTEE WHICH I
CHAIR. IT ACTS ON OUR IMPORTANT RISKS.
I WOULD LIKE TO THANK THE RISK DIVISION AND OUR CONTRACTING
PARTNERS FOR DEVELOPING AND FACILITATING THE TRAINING YOU’RE
PARTICIPATING IN TODAY. I WOULD LIKE TO THANK THE PIH
LEADERSHIP AND STAFF FOR SUGGESTIONS AND COMMENTS AS TO
HOW TO IMPROVE THIS TRAINING BEFORE IT PREMIERED.
ATTENDANCE NUMBERS HAVE BEEN GREAT AND DEMONSTRATE WE HAVE
ACCOMPLISHED OUR GOAL TO BRING THIS TRAINING TO ALL OF PIH AND
WITH THE WEB CAST WE WILL HAVE MADE A CRUCIAL STEP IN THE
FORMATION OF A RISK AWARE CULTURE.
LET ME THANK YOU FOR THE ROLE YOU’VE PLAYED IN THIS
ORGANIZATION BUT MORE IMPORTANTRY, LET ME THANK YOU
FOR EVERYTHING YOU DO, EVERY DAY ON BEHALF OF THE CITIZENS WE
SERVE. IT’S BEEN A HUGE LEARNING CURVE
BUT I REALLY APPRECIATIVE OF THIS AND EXCITED ABOUT THE
OPPORTUNITIES ENTERPRISE RISK MANAGEMENT BRINGS TO OUR
ORGANIZATION. SO, HAVE FUN, LEARN A LOT.
LOOKING FORWARD TO TALKING TO YOU, AGAIN, THANK YOU.
>>HELLO, MY NAME IS WENDEL CONNER AND WELCOME TO THE PUBLIC
AND INDIAN HOUSING ENTERPRISE RISK MANAGEMENT TRAINING.
BEFORE WE GET STARTED FOR THOSE IN THE STUDIO, WHAT OFFICES YOU
REPRESENT? DO WE HAVE ANYONE FROM HOUSING
AND VOUCHER PROGRAMS? ANYONE FROM THE REAL ESTATE
ASSESSMENT CENTER? GOOD TURN OUT THIS MORNING.
HOW ABOUT CONTRACTING OFFICE? DO WE HAVE SOME REPRESENTATION
THERE? AND THOSE OF YOU WATCHING, ON
THE INTERNET, ASSUMING SINCE THE VAST MAJORITY OF OUR WORKING
STAFF IS FROM FIELD OPERATION OPERATIONS WE KNOW IS OUR PUBLIC
HOUSING OFFICE WILL BE WATCHING AS WELL.
OKAY. BEFORE WE GET STARTED, THIS
TRAINING IS BROKEN DOWN INTO 50-MINUTE SEGMENTS SO WE’LL GO
50 MINUTES. WHEN IT IS UP, WE’LL TAKE A
BREAK AND COME BACK AND DO ANOTHER 50 MINUTES.
WE’RE GOING TO START WITH CREATING A RISK AWARE CULTURE
TODAY, THEN GOING TO GO INTO THE BASICS, DO UNDERSTANDING
ENTERPRISE RISK MANAGEMENT, THEN, FINISH TODAY’S COURSES
WITH PIH, ERM PRACTICE, THEN, TOMORROW WE HAVE A TRAINING THAT
IS FOCUSED MORE ON USING RISK TOOLS FOR PUBLIC AND INDIAN
HOUSING GROUP, USING A CASE STUDY, LEARNING HOW TO USE THOSE
TOOLS TO IDENTIFY ROOT CAUSES OF TROUBLES.
SO WE’RE HERE AT MODULE ONE, IN THIS SEGMENT WE’RE GOING TO
START BY COVERING RAISING AWARENESS UNDER THE GOALS OF OUR
ENTERPRISE RISK MANAGEMENT IN THIS TRAINING IS TO RAISE
AWARENESS OF WHAT WE’RE TRYING TO DO WITH RISK MANAGEMENT AND
OFFICE OF PUB RICK AND �– PUBLIC AND INDIAN HOUSING,
TALKING ABOUT CHANGING THE CULTURE TO BECOME MORE RISK
AWARE, AND TO ADDRESS OUR KNOWN RISKS AND IDENTIFY AND MANAGE
OUR RISKS. WE’RE GOING TO TALK ABOUT THE
ENTERPRISE FRAMEWORK, AND ABOUT HANDOUT MATERIALS YOU HAVE TODAY
THERE IS A RISK LEXICON DOCUMENT, WHICH IS A DICTIONARY
OF TERMS. WE WANT TO MAKE YOU FAMILIAR
WITH THE TERMS WE’RE USING SO WE’RE SPEAKING IN A COMMON
LANGUAGE. WE’LL FINISH THAT FIRST MODULE
GOING OVER THAT COMMON LANGUAGE.>>HELLO, MY NAME IS JUDY AND
I’LL BE PRESENTING PART OF TODAY’S TRAINING.
I WANT TO ASK A QUESTION. CAN ANYONE PROVIDE ME A SAMPLE
OF A CASE WHERE THEY WERE WORKING ON SOMETHING, AND
SOMEONE CAME UP AND INTERRUPTED THEM AND SAID I NEED YOU TO DO
THIS NOW. HAS THIS EVER HAPPENED WHY YOUR
WORK PLACE? NEVER?
ONCE PER MONTH? ONCE A WEEK?
EVERY DAY?>>IF THERE IS A FORM THAT HAS
TO BE FILLED OUT TODAY. WHEN YOU ASK WHAT IS IMPORTANT,
EVERYTHING IS IMPORTANT. WON’T IT BE NICE IF THE CULTURE
WOULD CHANGE SO WORK COULD BE PRIORITIZED?
AND ONE RESULT WOULD BE REDUCE, BUT WE’LL NEVER ELIMINATE
FIREFIGHTING BUT REDUCE IT? THAT IS WHY PIH IS INTRODUCING
ERM, IT ALLOWS WORK TO BE PRIORITIZED ACCORDING TO WORK
THAT IS MOST IMPORTANT. BY IDENTIFYING RISK, THAT IS THE
GOAL, LONG TERM. THE PURPOSE OF THE TRAINING IS
TO RAISE AWARENESS ABOUT THE PRACTICE AND LONG TERM TO START
CHANGING THAT CULTURE.>>THANK YOU, JUDY.
SO I’M ASKED ABOUT THIS. IS THIS ANOTHER PROJECT THAT IS
GOING TO JUST GO AWAY? IS THIS A�– ASKING THAT IS THE
FLAVOR OF THE WEEK? NO.
IT’S A JOURNEY. WE’RE TRYING TO CHANGE THE
CULTURE OF PIH. WHAT WE’RE TRYING TO DO IS
REQUIRE A CULTURE THAT SUPPORTS THE REPORTING OF RISK SO THAT WE
CHANGE OUR MIND SET THE WAY WE’RE THINKING AS AN
ORGANIZATION INSTEAD OF PUNISHING PEOPLE FOR COMING UP
WITH IDENTIFYING RISKS THAT NEED TO BE ADDRESSED WE’RE REWARDING
THAT TYPE OF ACTIVITY SO WE’RE PUTTING A WORK WORK IN PLACE TO
ALLOW US TO HAVE A CULTURE WHERE LINE STAFF CAN POINT OUT WHAT
RISKS ARE TO THE ORGANIZATION AND THE RISKS GET PRIORITIZED
AND MANAGED. SO YOU’VE BEEN HEARING ABOUT OUR
PRACTICE FOR SOME TIME. THE FIRST STARTED BACK IN 2011
WHEN THE GENERAL DEPUTY ASSISTANT SECRETARY DEBORAH
HERNANDEZ WANTED TO START A PRACTICE AFTER WE HAD BEEN
CONDUCTING A REVIEW AND HAD IDENTIFIED A PUBLIC HOUSING
AUTHORITY ON THE WEST COAST THAT HAD PROBLEMS RELATED TO AN
ENVIRONMENTAL ISSUE. WE’D IDENTIFIED A MAJOR RISK
BEFORE FISCAL IMPACT WAS KNOWN TO THAT HOUSING AUTHORITY, UNDER
OUR OLD SYSTEM, ESPECIALLY THE FIVE SYSTEM, WE’D IDENTIFY AFTER
THEY’D RUN OUT OF FUNDS. THIS WAS THE FIRST TIME WE’D
ACTUALLY, AND BY WE, I’M TALKING ABOUT A GROUP KNOWN AS QUALITY
ASSURANCE SUBSYSTEM HAD BEEN OUT, AT A JOB SITE, IDENTIFIED
THE PROBLEM AND HUD WAS ABLE TO TAKE ACTION BEFORE THE FINANCIAL
IMPACT HAD TAKEN PLACE. AND IN TALKING WITH THE GENERAL
DEPUTY ASSISTANT SECRETARY AT THAT TIME SHE SAID WE NEED TO DO
BETTER. WE NEED TO BE ABLE TO IDENTIFY
RISKS BEFORE THEY BECOME HEADLINE NEWS IN THE WASHINGTON
POST, IT WAS INTERESTING. I SAW WE WERE IN THE WASHINGTON
POST YESTERDAY, AS A MATTER OF FACT.
BUT BEFORE THOSE GET INTO THE WASHINGTON POST SO WE STARTED
TALKING ABOUT THIS IN 20116789 BY 20112 OPERATIONS STARTED
DEVELOPING THEIR NATIONAL RISK ASSESS MANY TOOL.
WE FORMED A WORKING GROUP LAST JANUARY AND FEBRUARY, AND IN
2014, FOR A NUMBER OF OFFICES REPRESENTED THROUGHOUT PIH TO
COME UP WITH THIS FRAMEWORK THAT YOU’RE LEARNING ABOUT TODAY.
THROUGH THIS TRAINING, AND DEVELOPING OUR ENTERPRISE RISK
MANAGEMENT PRACTICE. WE THEN, HAD A WORK SHOP IN
JUNE, 2014, WHERE WE SIGNED A CHARTER WHICH CREATED AN
ENTERPRISE RISK COMMITTEE MADE UP OF PRINCIPLE STAFF FROM PIH
AND HAD OUR FIRST MEETING IN JANUARY, 2015 AND THROUGHOUT THE
SUMMER, WE HAVE BEEN VISITING TEN CITIES AND DOING THIS WEB
CAST TO TRAIN THE ORGANIZATION ON OUR RISK MANAGEMENT
PRACTICES. THE WORKING GROUP THAT IS WAS
ESTABLISHED CAME UP WITH THE FRAMEWORKS AVAILABLE TO US FOR
PUTTING IN RISK MANAGEMENT, THAT WILL MAKE MORE SENSE TO YOU AS
THIS TRAINING GOES ON AS WE GO THROUGH STEP BY STEP WHAT THAT
FRAMEWORK IS. ALSO, AS A RESULT OF THAT
WORKING GROUP, WE ENDED UP ESTABLISHING A RISK DIVISION
WITHIN PIH, HOUSED AT THE REAL ESTATE ASSESSMENT CENTER.
WE ESTABLISHED BEFORE THE RISK MANAGEMENT COMMITTEE MADE UP OF
PRINCIPLE STAFF WITHIN PIH. WE DEVELOPED A STANDARDIZED RISK
ASSESSMENT PROCESS FOR PIH, WHICH YOU’LL LEARN ABOUT AS WE
GO THROUGH TODAY’S TRAINING MATERIALS.
AND, AS MENTIONED EARLIER, WE CAME UP WITH A LEXICON OF TERMS
SO WE’D BE SPEAKING THE SAME LANGUAGE, WHICH IS CONTAINED IN
THE HAND OUT MATERIALS.>>IMAGINE, YOU’RE DRIVING DOWN
A ROAD AND COME UPON A SIGN. WHAT IS THIS SIGN TELLING YOU?
WHAT IS IT EMPHASIZING? DANGER?
WHY IS IT DANGEROUS? THERE ARE SHARP EDGES.
WHAT IS THE SIGN�– WHAT MIGHT YOU HAVE MISSED?
THIS SMALL PRINT IS SAYING THE BRIDGE IS OUT HEAD.
SO YOU KNOW, SOMETIMES WE FOCUS ON SHARP EDGES AND MISS THE
BIGGER MESSAGE. IT COULD BE, SAY YOU’RE SPENDING
TIME WITH A PHA THAT IS FAILING. AND PERHAPS MISS THE BIGGER
ISSUE WHICH IS POLICIES. AND ANOTHER SAMPLE MIGHT BE A
SMALL LOAN THAT IS FAILING. BUT MISS THE FACT OR NOT SPEND
AS MUCH TIME ON POLICIES THAT MAKE RISKY LOANS POSSIBLE.
THAT IS KIND OF WHY ERM IS IMPORTANT.
ERM DEMANDS WE EXAMINE THE BIG PICTURE RISKS.
AND SPEND OUR TIME FOCUSED ON THAT.
THIS IS AN ORDER TO AVOID MORE FIREFIGHTING OR BEING BLIND
SIDED BY THOSE BROADER-REACHING AFFECTS OF THOSE RISKS.
SO OUR FIRST OFFICIAL DEFINITION, I’D LIKE TO
EMPHASIZE THE FACT AND LET YOU READ IT.
SPEND A MOMENT TO READ IT. WE’RE GOING TO COME BACK TO THIS
AND IT WILL MAKE MORE SENSE TO YOU LATER.
IT’S IMPORTANT TO UNDERSTAND ERM IS STRATEGIC AND IT’S A BUSINESS
DISCIPLINE. IT’S A DIFFERENT WAY OF DOING
WORK. IT COVERS A FULL SPECTRUM OF
RISK UP, DOWN AND ACROSS. AND IT LOOKS AT THE
INTERRELATIONSHIPS BETWEEN THOSE RISKS ACROSS THE ORGANIZATION.
AS WE SAID, WE’RE TALKING ABOUT THAT SIGN, ERM, THE FRAMEWORK
IDENTIFIES THE FACT NOT ALL RISKS ARE CREATED EQUAL.
AND WE WILL FOCUS ON THE RISKS THAT ARE MOST-IMPORTANT.
IF ERM CAME ABOUT PARTLY BECAUSE OF CIRCULAR 8-123.
IT IS STARTING TO TAKE HOLD IN THE PUBLIC SECTOR.
IT’S BEEN IN A PRIVATE SECTOR QUITE A WHILE.
SO THAT IS KIND OF OUR FIRST LOOK AT THE DEFINITION.
>>WHEN
THE WORKING GROUP WAS PUTTING THIS TOGETHER AND TRYING
TO FIGURE OUT FRAMEWORK WE’RE FORTUNATE IN BECAUSE THE PRIVATE
SECTOR HAD BEEN WORKING ON THIS OVER A DECADE, THAT IT’S A
WELL-ESTABLISHED DISCIPLINE IN CORPORATE AMERICA.
THERE ARE RISK MANAGEMENT STANDARDS AND ABLE TO GO THROUGH
AND LOOK AT WHAT OTHERS HAD BEEN PUT IN PLACE.
THERE HAS BEEN A NUMBER OF BEST PRACTICES THAT WE’RE ABLE TO
DRAW A BOX FROM. THERE IS JUST A WEALTH OF
INFORMATION THAT THE GROUP WAS ABLE TO USE.
THIS BECAME PROMINENT WITH
THE THAT MANDATED A SYSTEM OF
INTERNAL CONTROL. IS ANYONE FAMILIAR WITH A-123?
AND AS MANAGERS WE HAVE TO MANAGE A SYSTEM FOR INTERNAL
CONTROL?>>THAT SOUNDS LIKE IT DOESN’T
IT? SO EFFECTIVELY, WITH THE
INTEGRITY ACT WHICH CIRCULAR 123, THE FEDERAL GOVERNMENT HAS,
FOR A NUMBER OF YEARS HAD OUR VERSION OF IT.
WE’VE JUST BEEN SLOWER ADAPTING THE CONCEPTS.
THE OTHER GOOD THING IS THAT WE’RE NOT GOING ALONE
ON THIS.
THERE ARE OTHER AGENCIES AND WE’VE BEEN INVITED IN NOVEMBER
AND SO THIS IS ONE OF THOSE AREAS WHERE PIH IS OUT AHEAD OF
THE CURVE AS FAR AS FEDERAL AGENCIES GO AND NOW, ADOPTING
BEST PRACTICES YOU’LL HEAR US REFER TO THE THINGS KNOWN AS
KOSO. THAT IS THE FRAMEWORK WE’VE
ENDED UP ADOPTING IT’S HELPFUL BECAUSE IT GIVES US DEFINITIONS
AND LANGUAGE AND CLEAR DIRECTION AND GUIDANCE FOR HOW
WE MODIFIED
NEEDS. YOU HEARD ME MENTION THE
INTEGRITY ACT OF 1982. IS ANYONE HERE IN THE ROOM
FAMILIAR WITH IT? IT REQUIRES A FEDERAL AGENCY TO
REPORT AND MAKE THAT YEAR END. SO SINCE 1982 WE HAVE HAD
REQUIREMENTS THAT WE HAVE
A PRIORITIZING TO TRY TO GET TO
THINGS THAT MATTER THE MOST AND WORK OUR WAY DOWN FROM THERE.
AS MENTIONED THE GUIDANCE IS IN OMB CIRCULAR, A 123.
AND ONE OF THE THINGS THAT IS HAPPENING CURRENTLY IN THE
FEDERAL SPACE IS OMB AND GAO ARE PUSHING AGENCIES TO CONSIDER
ADOPTING ENTERPRISE RISK MANAGEMENT.
THERE IS A REWORKED VERSION THAT IS DRAFTED NOW GOING AROUND FOR
COMMENT. AND THERE IS A DEBATE THIS IS
WHETHER OR NOT IT SHOULD BECOME A MANDATORY REQUIREMENT OR JUST
A STRONGLY SUGGEST AND WHEN THEY CAME OUT WITH A-11, WHICH IS THE
CIRCULAR THAT GIVES GUIDANCE ON HOW TO PUT BUDGETS TOGETHER,
THEY STRONGLY SUGGESTED AND IT’S LOOKING LIKE THEY’RE GOING TO
SUGGEST, RATHER THAN REQUIRE, AGENCIES ADOPT THIS.
BUT WHY I DON’T THAT OUT IS BECAUSE IF YOU’RE TIRED OF
HEARING ABOUT IT ALREADY, IMAGINE WHAT YOU’RE GOING TO SEE
IN THE NEXT 5 TO 10 YEARS. IT’S NOT GOING TO GO AWAY.
IS IT A PROJECT THAT IS GOING TO GO AWAY?
IS IT A JOURNEY? IT’S A JOURNEY.
AND FOR PIH, WE RECOGNIZED THAT EARLY AND MORE AHEAD OF THE
CURVE WITH OUR FEDERAL AGENCIES. OKAY.
I KNOW IF YOU’RE LOOKING IN THE ROOM HERE, UNLESS YOU HAVE THE
SLIDES IN FRONT OF YOU, THIS IS HUD’S ORGANIZATIONAL CHART.
I WANT TO EMPHASIZE HERE IS THAT THE PROJECT THERE IS PART OF THE
LARGER ORGANIZATION. THE PRACTICE IS FOUR PIH.
THERE IS OTHER ACTIVITIES GOING ON IN HUD.
GUINEA MAY �– GINNIE�MAE HAS POLICIES IN PLACE.
WE’RE WORKING OUT THE FRAMEWORK FOR THE ORGANIZATION PUT IN
PLACE, WE’LL BE ABLE TO JUST TAKE OUR FRAMEWORK AS AN AGENCY
AS A WHOLE. SO WE SEE THAT HAPPENING WITHIN
THE NEXT WHILE WE TALK ABOUT TODAY’S, WE’RE TALKING ABOUT
ENTERPRISE RISK MANAGEMENT. THE ENTITY IS OFFICE OF PUBLIC
AND INDIAN HOUSING. WHICH, BY THE WAY IS NO SMALL
THING. THIS IS A PIE CHART TAKEN FROM
HUD’S STATEMENTS FOR FEDERAL YEAR 2013.
THAT RED PART OF THE PIE CHART, WHERE GROSS COSTS AND BILLIONS
IN PROGRAMS. THE BLUE PART IS FOR FED HUD AS
AN AGENCY. OUR MISSION IS SIGNIFICANT.
THIS IS ABOUT $31.6�MILLION IN GROSS COSTS IN 2016.
OUR 2015 BUDGETS. I WANT TO EMPHASIZE ENTERPRISE
RISK MANAGEMENT INVOLVES OUR PIH ORGANIZATION.
WE HAVE GOOD REPRESENTATION HERE IN THE ROOM, AND I’M SURE ON THE
WEB CAST THAT�– WANTED TO EMPHASIZE EACH OF OUR
ORGANIZATIONS ARE REPRESENTED IN OUR EFFORTS AND SO IT WILL BE
THE ENTIRE ORGANIZATION, WHETHER YOU’RE WITH THE OFFICE OF
VOUCHER PROGRAMS OR THE PUBLIC HOUSING, ONE OF THE GOALS IS
COMING TOGETHER SO IT’S ONE IMPORTANT STRATEGY THROUGHOUT
THE ENTIRE HUD RATHER THAN WHAT HAPPENED
IN THE PAST.
THIS SLIDE GIVES YOU A VISUAL OF THAT.
WHAT ERM DOESN’T DO IS THAT IT DOESN’T REPLACE DAY-TO-DAY
MANAGEMENT OR RESPONSIBILITY OF OUR PROGRAM OFFICES THAT YOU SAW
IN THAT PREVIOUS SLIDE. IT ALLOWS LEADERS TO DISCUSS
RISKS THAT CROSS CUT THE VARIOUS OFFICES AND DEVELOPING A
STRATEGY ON HOW TO MANAGE THOSE RISKS WITH PRIORITIZING HIGHEST
RISKS FIRST. AND CREATES A RISK DIVISION
WHICH SUPPORTS THIS EFFORT AND MAN TERING THIS EFFORT.
MAYBE A BETTER VISUAL IS THIS SLIDE FOR YOU.
WE’LL TALK ABOUT THE FOUR CATEGORIES THERE AT THE BOTTOM.
PROPERTIES, PROGRAMS, AND ENTERPRISE A LITTLE LATER IN THE
SESSION. BUT IN THAT SECTION IS ALL OF US
DOING OUR JOB. WHAT THE RISK DIVISION DOES IS
THAT IT HELPS TO SIFT THROUGH HIGHEST RISKS AND PRESENT THOSE
FOR THE RISK COMMITTEE SUMMING UP HOW TO ADDRESS THOSE RISKS,
AND TO IMPLEMENT THEIR DECISION TO GO THROUGH THE SERIES OF CASE
STUDIES IN A FEW MINUTES.>>KIMBERLY ASKED WILL THE GROUP
WORK THROUGH THIS TODAY, THE ANSWER TO THAT IS YES.
WITH A VERY RESOUNDING YES. BUT KNOW, BY THE TIME YOU’RE
DONE HIGHEST RISKS THAT ARE IDENTIFIED THROUGH THIS YEAR’S
FRAMEWORK AND PROCESS OF IDENTIFYING OUR RISKS.
SO YOU’RE ACTUALLY A PLANT. YOUR CHECK WILL BE�– SEE OUT
FRONT. OKAY.
SO, WHAT DOES ERM MEAN FOR HUD? AND I MENTIONED THERE ARE
MULTIPLE RISK INITIATIVES TAKEN PLACE.
AND CERTAIN DIVISIONS HAVE RISK OFFICERS.
GINNIE�MAE IS WORKING TO PUT THIS TOGETHER.
I SEE WITHIN 3 TO 5 YEARS, ERM WILL NOT JUST BE ADOPTED IN PIH.
I SEE IT WILL BE ADOPTED WITHIN HUD AS AN ORGANIZATION, AND
WITHIN ALL ORGANIZATIONS IN THE FEDERAL GOVERNMENT.
THAT IS THE DIRECTION WE’RE MOVING IN.
OKAY, TODAY WHAT WE’RE GOING TO DO IS TALK ABOUT THE RISK CYCLE.
AND THIS WILL MAKE MORE SENSE TO YOU IN MODULES STILL TO COME.
BUT THIS IS A BRIEF PREVIEW OF IT.
SO WE START OUT BY IDENTIFYING RISKS.
AND HAVE VARIOUS TECHNIQUES TO DO THAT.
THE COMMON TECHNIQUE WILL BE AN ANNUAL RISK ASSESSMENT WHICH
WE’LL LEARN ABOUT TODAY. ONCE IDENTIFIED, THEN, YOU
QUANTIFY THOSE RISKS USING A MEASURE OF PROBABILITY AND
IMPACT. THEN, YOU SELECT A RESPONSE AND
IMPLEMENT THE RESPONSE AND THEN, YOU HAVE AN ORGANIZATION
RESPONSIBLE FOR MONITORING RESULTS AND YOU’LL SEE WE PLAN
TO DO RISK ASSESSMENTS. THERE IS ANOTHER MECHANISM THAT
WE HAVE IN PLACE WILL BE NATIONAL RISK ASSESSMENT TOOL
USED BY OUR FIELD OFFICE
AND WE’LL COVER THAT LATER IN THIS
TRAINING SESSION. IN THE BACK OF YOUR HAND OUT
MATERIALS AND AVAILABLE FOR THOSE OF YOU VIEWING ONLINE AT
THE RISK DIVISIONS WEBSITE, THERE IS A DOCUMENT KNOWN AS THE
ENTERPRISE RISK MANAGEMENT RISK LEXICON.
IT
SOUNDS MORE IMPORTANT IF YOU’RE CALLED LEXICON.
THAT HAS DEFINITIONS TODAY. SO, ONCE LEAVING THIS TRAINING.
>>OKAY. SO THERE ARE A FEW WORDS BEFORE
WE CLOSE UP SEGMENT ONE.>>WE HAVE A FANCY TERM FOR THE
DICTIONARY IN THE BACK. THE REASON WE’RE PICKY ABOUT
LANGUAGE IS ERM IS UNIFORM RISK MANAGEMENT FRAMEWORK.
IT’S IMPORTANT TO DISCUSS HAVING A CONSISTENT COMMUNICATION OF
RISK. SO WE HAVE TO UNDERSTAND IT’S
THE FUNDAMENTALS. TODAY WE’RE GOING TO SPEND TIME
WITH FUNDAMENTAL TERMS AND I RECOMMEND YOU LOOK THROUGH THE
LEXICON AT YOUR CONVENIENCE BECAUSE THERE IS A LOT YOU WON’T
BE ABLE TO COVER TODAY. WE’RE GOING TO SPEND TIME ON
FEATURES AND BENEFITS. IT’S IMPORTANT TO UNDERSTAND WHY
IT’S IMPORTANT AS A WHOLE. AND WE’RE GOING TO SPEND TIME ON
THAT AND ASK YOU TO PARTICIPATE. WE HAVE AN EXERCISE FOR YOU TO
PARTICIPATE IN. AND WE’LL TAKE YOU THROUGH THE
PROCESS. SO WE’LL GET MORE INTERACTIVE AS
WE PROGRESS THROUGH THE DAY. SO AS WE FINISH UP, ARE THERE
QUESTIONS? OKAY.
GREAT. WE’LL TAKE A MOMENT THEN WE’RE
GOING TO LOAD MOD TWO.

Reynold King

Leave a Reply

Your email address will not be published. Required fields are marked *