ARCHIVED - Western Economic Diversification Canada

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Section IV - Other Items of Interest

1.0 Corporate Risk Profile

WD's Executive Committee was instrumental in the development of the Strategic Risk Assessment for the department and approved a comprehensive Corporate Risk Profile (CRP) in December 2006.  The CRP key risks are addressed through mitigation action plans, which include assigned accountabilities for these mitigation strategies.  They were developed in line with the department's mandate and three Strategic Outcomes and are monitored at all levels within the organization.  The department identified eight key risks as important to manage in the coming year(s).  These eight key risks are included in Appendix C.  Each year, and more often as required, the department will refresh its assessment of key risks, and adjust its plans and responses (management strategies) accordingly. 

The Corporate Business Plan, the Regional Business Plans, and in turn, the RPP respond to the risks identified.  At a more detailed level, each plan is similarly and consistently framed against the Program Activity Architecture and the risk management strategy.

2.0 Risk Analyses and Mitigation - Strategic Outcomes

The planning for delivery of WD's Strategic Outcomes includes risk consideration and analysis, and the development of strategies for mitigation of identified risks.  A discussion of those risks and how WD plans to manage them is included here.

Policy, Advocacy and Coordination

The risks that might impact WD's outcomes, and ways these risks are managed, include:

• Diverse interests within Western Canada can make it difficult to discern a clear and common "western" perspective.  This challenge is managed by both championing regional and community diversity (in our regional structure, plans, and flexibility), and by identifying key pan-western policies, programs and initiatives that benefit the West as a whole.  Our priorities focus on areas of shared interest and opportunity, and working collaboratively with our partners and public sector counterparts.
• WD has an opportunity to align western Canadian interests on business productivity, diversification and technology commercialization, particularly with recent provincial initiatives and the federal Science and Technology Strategy.  To not do so poses a risk of lost opportunity, with a cost to the diversification agenda.  The department will drive further collaboration and opportunity through its outreach efforts, advocacy strategy, and collaboration.

Community Economic Development

The risks that might impact WD's outcomes, and ways these risks are managed, include:

• Communities will thrive if they are able to respond to a changing economy and demographic realities.  The risk that communities do not have the capacity to do so, is a focus for WD.  Therefore, the department has programs and services aimed at building capacity and helping communities take advantage of diversification and development opportunities.  Our priorities focus on infrastructure, investments in key trade corridors, and diversification initiatives that drive new economic opportunities.
• There are also risks to achieving economically viable communities associated with demographic trends (e.g., labour shortages) and unforeseen economic challenges (e.g., mountain pine beetle, flooding, or industry adjustments).  The department will work with other public and private sector interests to help communities respond to these challenges, and focus on improved productivity, targeted supports and investments, and community adjustment initiatives.

Entrepreneurship and Innovation

The risks that might impact WD's outcomes, and ways these risks are managed, include:

• One of the department's more challenging risks in this outcome area is associated with the need to improve the technology commercialization success in Western Canada.  Knowledge-based research and development is critical to the new economy, and there is significant opportunity in key sectors to improve performance, and, in turn, Canada's economic performance in the global economy.  Advantage Canada articulates clear direction in this area, and the department aligns itself with this agenda.
• The dominance of the energy and resources sectors in Western Canada is both a risk and strength for the economy.  Capital investment in the dominant industry is strong, but it has implications for access to capital in emerging sectors.  WD has made increasing access to capital a priority as a means to achieve a competitive and expanded business sector.
• Western Canada is also a relatively small market, with strong trade interests and appetites.  This means the economy is at risk due to fluctuations in the global trading and investment environment, but similarly at risk if strong trade ties are not pursued by our emerging businesses.  WD focuses on improving trade corridors, diversifying markets for business, and helping SMEs and industries to compete in the global economy.
• A major risk to the western Canadian and national economy is one associated with a relative lack of competitiveness and productivity.  Without advances in this area, the long-term strength and sustainability of the economy is at risk.  WD has made investments that improve productivity and competitiveness to help ensure this risk is managed.

Appendix A - WD's Commitment to Official Languages

Through the use of partnerships and opportunities to expand on current community and economic development initiatives, WD commits to four key activities in its Action Plan (2004-2008) for the Implementation of Section 41 of the Official Languages Act:

• communicating the department's Action Plan by promoting concepts, activities and achievements of Section 41 within and external to the department;
• providing support to Francophone Economic Development Organizations (FEDOs);
• building partnerships with other departments and stakeholders; and
• providing support to projects with Official Language Minority Communities (OLMCs).

The Action Plan looks to enhance the department's Strategic Outcomes within the activities of the western Official Language Minority Communities (OLMCs).  Further information on the Action Plan can be obtained at: http://www.wd.gc.ca/7106_ENG_ASP.asp.

Across Western Canada, WD partners with FEDOs to address and provide assistance to francophone entrepreneurs and western OLMCs.  The four FEDOs work with francophone communities and entrepreneurs to encourage innovative, sustainable and entrepreneurial economic practices.

During 2008-2009, WD will work with FEDOs and other members of the Western Canada Business Service Network (WCBSN) to strengthen the collaborative relationship to better serve the needs of francophone entrepreneurs and western OLMCs.

Through the FEDOs, WD will continue to support economic development of bilingual communities in Western Canada.  A key project will be the "Corridor touristique Francophone de l'Ouest" (CTFO) initiative.  This pan-west project will promote Western Canada's bilingual tourism industry and will contribute to the creation of economic development opportunities for OLMCs in Western Canada by tapping into the economic potential of the French language and culture in the region along with capitalizing on the international attention resulting from the Vancouver 2010 Winter Olympic Games.

In 2003, the Federal Government announced a five-year Action Plan on Official Languages that highlighted the importance of linguistic duality as part of the Canadian cultural identity and provided investments in education, community development and the public service.  A new strategy with regard to the Federal Government's role in Official Languages is under development for the five-year period post March 31, 2008.

WD Section 41 Action Plan (2009-2012)

WD's Strategic Framework places precise emphasis on a mandate of economic development and diversification.  Thus, the next WD Section 41 Action Plan (2009-2012) will be developed taking into consideration the following:

• pursuing activities and investments that support economic and business activities that have clear economic benefits for Western Canada; and
• placing greater emphasis on promoting pan-western/multi-regional and systemic activities that would benefit the western Canadian economy and industry/business sectors as a whole.

WD will engage representatives from the western OLMCs to identify project initiatives and opportunities within this framework; it is anticipated that the departmental Action Plan for the 2009-2012 period will include the following key tenets:

• continuing to work with western OLMCs to contribute to their economic development and diversification, and in coordination with other federal institutions that have an economic development mandate;
• developing and implementing an integrated OL Framework, including a "francophone lens" which will examine the potential impact of proposed and existing programs and projects on OLMCs to respond to opportunities and obligations under both the OLA and the Federal Action Plan;
• funding of initiatives and activities with OLMCs that respond to WD's economic diversification priorities.

WD employs a flexible, comprehensive and integrated approach to innovative business development and sustainable communities in Western Canada's francophone communities.  It offers WD the flexibility to support operating funding to existing francophone organizations, while enhancing the suite of services that can be offered to francophone entrepreneurs, SMEs and OLMCs.

Appendix B - Description of Key Transfer Payment Program Authorities

The following are the key transfer payment program authorities which allow WD to make grants and contributions payments to eligible recipients in order to implement its Program Activities and achieve its Strategic Outcomes:

Western Diversification Program (WDP) - this program authority is designed to promote economic development and diversification in Western Canada and advance the interests of Western Canada in national policy, program and project development and implementation.  The WDP is WD's main program, and is used to fund projects and contributes to the expected results of all WD Program Activities and Strategic Outcomes. 

Community Futures Program  (CF) - this national program authority is designed to provide funding for a network of Community Futures Development Corporations (CFDCs) across Canada with WD as the delivery department for the West.  CFDCs are volunteer-led, non-profit organizations that lead strategic economic planning, and provide advice and commercial loans to local entrepreneurs, who foster economic development.  The CF program contributes to the expected results under two Program Activities, Community Economic Planning, Development and Adjustment, and Business Development and Entrepreneurship.  The program also contributes to two of WD's Strategic Outcomes, Economically viable communities in Western Canada with a high quality of life, and A competitive and expanded business sector in Western Canada and a strengthened western Canadian innovation system.

Loan and Investment Program (LI Program) - allows financial institutions to supply loan capital to clients to whom it would not otherwise make loans.  Under this program authority, WD contributes funds to a loan loss reserve, which partly offsets higher risks associated with eligible loans to small businesses.  Eligible clients apply directly to the financial institutions partnered with WD under this program.  Projects funded under this program authority contribute to the Business Development and Entrepreneurship Program Activity.  Results of LI Program projects contribute to the Strategic Outcome of A competitive and expanded business sector in Western Canada and a strengthened western Canadian innovation system.

Infrastructure Canada Program - was launched in 2000 in partnership with provincial, territorial and local governments, First Nations and the private sector.  The Infrastructure Canada Program (ICP) has been helping to renew and build infrastructure in rural and urban municipalities across Canada.  Other than for First Nations communities, WD delivers the program in the West on behalf of Infrastructure Canada.  Although no new applications are being accepted, program funds are still being disbursed.  Results of  Infrastructure Canada projects contribute to the Infrastructure Program Activity and the Strategic Outcome of Economically viable communities in Western Canada with a high quality of life.  Information on program authorities for infrastructure-related activities (i.e, ICP, MRIF, CSIF) can be found in Infrastructure Canada's RPP.

Information on these and other WD transfer payment program authorities is available at: http://www.wd.gc.ca/16_ENG_ASP.asp.

 

Appendix C - Corporate Risk Profile Key Risks Action Plan

Strategic Outcomes	Policy, Advocacy, Coordination	Community Economic Development	Entrepreneurship and Innovation
	Policies and programs that support the development of Western Canada	Economically viable communities in Western Canada with a high quality of life	A competitive expanded business sector in Western Canada and a strengthened western Canadian innovation system
Key Risks	Alignment with Strategic Outcomes – Key risk mitigation strategies
Risk #1 Challenges in demonstrating results given measurement issues (capacity and ability to measure project results, attribution, lack of service standards	Ensure that WD’s financial and project management system will provide relevant information on the value of project funding (including both WD funding and funding leveraged from other project partners). Ongoing monitoring and reporting process on the percentage of projects that successfully met performance targets.	Ensure that WD’s financial and project management system will provide relevant information on Disposable income per capita; labour productivity growth and educational attainment. On-going refinement of performance measurement criteria for initiatives supporting Community Economic Development initiatives.	Ensure that WD’s financial and project management system will provide relevant information on Real Gross Domestic Product (GDP growth); International trade (value of exports, excluding primary production sectors and R & D intensity), gross Domestic Expenditures on R&D as a percentage of GDP Performance Measurement criteria in place for Research and Development, business clusters and commercialization of new products, technologies and services in sectors such as ICT/Wireless, biotechnology, nanotechnology and light synchrotron initiatives. Continue work with WCBSN members to improve performance data capture and accuracy. Increase regional challenge of questionable data.
Risk #2 Many demands with respect to priorities – Organizational structure/capacity to meet the emerging accountability and management agenda requirements	Focus efforts on departmental priorities identified in Corporate Business Plan. Limited resources require WD to focus efforts on key policies, programs and initiativies that will support the development of western Canada. Ensure adequate resources and skill sets are in place to support activities such as research, conferences, consultation and feasibilitity studies to support the western Canadian Economy and focus on specific economic challenges and opportunities in the West.	Focus efforts on departmental priorities identified in Corporate Business Plan. Focused attention to support communities with programs and services aimed at building capacity in the area of: infrastructure, investments in key trade corridors and diversification initiatives that will drive economic opportunities. Ensure WD staff capacity to work with communities and conduct environmental assessments thru recruitment and training.	Focus efforts on departmental priorities identified in Corporate Business Plan. Focused attention on rural diversification projects to increase capacity of rural areas across Western Canada. Pursue initiatives that improve SME access to capital. Support targeted projects that help industry to address access to skills and labour issues in Western Canada. Ensure WD staff capacity is in place.to support economic growth and diversification initiatives including trade and investment activities thru recruitment and training.
Risk #3 Compliance with commitments to governing authorities and in TB submissions	A rigourous departmental audit and evaluation plan to monitor and ensure compliance with governing policies to support Policy, Advocacy and Coordination initiatives. On-going training on Transfer Payment policy, writing of TB submissions to support compliance in Policy, Advocacy and Coordination.	A rigourous departmental audit and evaluation plan to monitor and ensure compliance with governing policies to support community Economic Development initiatives. On-going training on Transfer Payment policy, writing of TB submissions to support compliance in Community Economic Development.	A rigourous departmental audit and evaluation plan to monitor and ensure compliance with governing policies to support Entrepreneurship and Innovation initiatives. On-going training on Transfer Payment policy, writing of TB submissions to support compliance in Entrepreneurship and Innovation.
Risk #4 Reliance on partnerships and not for profits – client service	Establish good relations to work collaboratively with our partners and public sector counterparts. Support and promote a horizontal network of Federal and Provincial departments to address and support long-term growth and diversification and promote coordination in areas of federal or shared federal provincial jurisdictions.	Develop a more coordinated, integrated and collaborative strategy to address community economic development issues in regions. This will include working with WCBSN members to improve accountability, performance and collaboration of community economic development initiatives. Work with provinces and communities to manage MRIF projects and other existing infrastructure commitments, with a particular focus on encouraging better linkages between infrastructure and economic development.	Help entrepreneurs grow and expand their businesses by supporting specific sector initiatives as well as through the Western Canada Business Service Network (WCBSN). As part of this strategy, strengthen the accountability, transparency and performance of the WCBSN.
Risk #5 Appropriateness of spending aligned with Report on Plans and Priorities	Enhance Corporate and Regional Business Planning to incorporate more robust Strategic Outcome and PAA based financial and program planning and reporting.	Enhance Corporate and Regional Business Planning to incorporate more robust Strategic Outcome and PAA based financial and program planning and reporting.	Enhance Corporate and Regional Business Planning to incorporate more robust Strategic Outcome and PAA based financial and program planning and reporting.
Risk #6 Effectiveness of Strategic Communications (internal and external)	Implement employee survey to gauge effectiveness of internal communications on Strategic Outcomes and priorities. Implement corporate and regional communications plans and regularly monitor activities and results at Departmental and Regional management levels. Seek and analyse key informant opinion to ensure that WD policy activities focus on key policies and programs that support the economic development of Western Canada.	Implement employee survey to gauge effectiveness of internal communications on Strategic Outcomes and priorities. Implement corporate and regional communications plans and regularly monitor activities and results at Departmental and Regional management levels. Implement federal-provincial communications protocols for Infrastructure program in conjunction with Infrastructure Canada	Implement employee survey to gauge effectiveness of internal communications on Strategic Outcomes and priorities. Implement corporate and regional communications plans and regularly monitor activities and results at Departmental and Regional management levels. Manage communications with WCBSN partners through a mix of individuals, regional and pan-west meetings.
Risk #7 Recruitment, Retention, Succession Planning, and Training	Implement an HR plan on recruitment, retention, succession planning and training to ensure adequate capacity and skill sets are in place for Policy, Advocacy and Coordination initiatives.	Implement an HR plan on recruitment, retention, succession planning and training to ensure adequate capacity and skill sets are in place for Community Economic Development Initiatives.	Implement an HR plan on recruitment, retention, succession planning and training to ensure adequate capacity and skill sets are in place for Entrepreneurship and Innovation Initiatives.
Risk #8 Absence of comprehensive information architecture needed for integration of systems and providing road and for future	On-going development of Project Gateway initiative for reporting on plans, expenditures and performance measurement criteria supporting Policy, Advocacy and Coordination initiatives. Implementation of an IT plan supporting supporting Policy, Advocacy and Coordination initiatives.	On-going development of Project Gateway initiative for reporting on plans, expenditures and performance measurement criteria supporting Community Economic initiatives. Implementation of an IT plan supporting supporting Community Economic initiatives.	On-going development of Project Gateway initiative for reporting on plans, expenditures and performance measurement criteria supporting Entrepreneurship and Innovation initiatives. Implementation of an IT plan supporting supporting Entrepreneurship and Innovation initiatives. Work with WCBSN members to enhance automated performance data collection.

 

[1] Data sources for this section are Statistics Canada (for 2006) and Conference Board of Canada (for 2007 and 2008)

[2] http://www.wd.gc.ca/99_ENG_ASP.asp.

[3] Western Centre for Economic Research, "Revisiting Portraits of Small Business Growth and Employment in Western Canada", http://www.bus.ualberta.ca/wcer/pdf/86eng.pdf

[4]  Source: A Profile of Canadian Exporters: 1993 to 2005. Statistics Canada, November 2007.

[5]  Source: Revisiting Portraits of Small Business Growth and Employment in Western Canada. Western Center for Economic Research, 2006.

[6] http://www.chamber.ca/cmslib/general/CLC082005.pdf

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