Key risks 2018 to 2019

Table of contents

Key risks: things that could affect our ability to achieve our plans and results

In 2018–19, the Department had a number of risk management practices in place to support management in addressing risks that may prevent the Department from achieving its mandate. Key to these risk practices were conducting risk assessments and implementing risk mitigation plans at the corporate, sector, region, service area and project levels.

The tables below outline the Department's 3 most significant external risks (Indigenous Relationship Risk, Environmental Risk and Legal Risk) and the status of the key mitigating strategies undertaken in 2018–19.

This year additional efforts were made to identify, assess and respond to transformation risks that arose from the creation of a new department. Following the announcement of the creation of ISC as a new department, a risk assessment of the Department's transformation risks was conducted. This point-in-time analysis was intended to assist in the planning for the next phase of the transition and transformation project. Through the year, a number of the risks identified in the assessment were attended to by specific risk mitigation actions including: a transition plan, active communication with employees, the creation of a transformation working group, and the development of initial agreements for internal services with other departments. The outcome of these measures were more informed and engaged employees and stakeholders on the direction of the Department as well as the implementation of internal mechanisms to address the new transition requirements of the internal and external services of the Department.

Environmental Risk

There is a risk that the Department will be unable to manage environmental issues and liabilities in a timely and cost-effective manner.

Mitigating Strategy and Effectiveness Link to the Department's Core Responsibility Link to mandate letter(s), government-wide and departmental priorities
  • In 2018–19 the Department supported the Assembly of First Nations (AFN) in its lead role in engaging with First Nations partners on the co-development of a legislative framework for safe drinking water for First Nations. The Department also initiated discussions with 30 Modern Treaty Holders and Self-Governing First Nations.
  • The AFN commenced engagement sessions on the co-development of a departmental operation and maintenance policy framework, based upon an Asset Management approach, to support community infrastructure including water, wastewater, solid waste and other community infrastructure such as roads and bridges. Asset Management is a systematic process of developing, operating, maintaining, upgrading and disposing of assets in the most cost-effective manner that supports the delivery of services and protects the full lifecycle of the infrastructure.
  • ISC continued to negotiate emergency management Memorandum of Understandings with provinces (assisting communities to cope with increasing numbers/severity of emergencies as a result of climate change).
    • Specifically, in 2018–19, the Department had in place emergency management service agreements and/or Memorandum of Understandings with provinces, territories, and third party service providers in the regions of British Columbia, Alberta, Manitoba, Ontario, Quebec, Prince Edward Island, Northwest Territories, and Yukon. In addition, the Department provided $9.6 million in 2018–19 to support First Nations-led non-structural mitigation activities.
  • The Department completed 1 renewable energy project in an off-grid community: a hydroelectricity project expected to provide over 90% of the community's electricity generation requirements and replacing diesel fuel. The Department continues to support First Nations-led efforts to identify and implement renewable electricity options to reduce diesel consumption in their communities.
Community and Regional Development Improve essential infrastructure for Indigenous communities

Amendment of environmental legislation

Legal Risk

There is a risk that the Department will be unable to effectively plan for or respond to legal risks that affect departmental operations.

Mitigating Strategy and Effectiveness Link to the Department's Core Responsibilities Link to mandate letter(s), government-wide and departmental priorities
  • In support of the Government of Canada's continued efforts towards reconciliation, the Department's preference remained to resolve Indigenous grievances through negotiation rather than litigation. In 2018–19, ISC resolved 7 out of court-settlements, totaling $8,555,586.
  • In response to the February 1, 2018 Canadian Human Rights Tribunal rulings regarding the First Nations Child and Family Services Program, Canada signed a consultation protocol with the Parties to the Complaint, which resulted in the establishment of the Consultation Committee on Child Welfare. This committee aims to support mutual understanding, transparency and cooperation amongst the Parties. Canada seeks to resolve issues at this table and to potentially prevent additional litigation.
  • ISC reviewed litigation management in the Department, assisted by the adoption of The Attorney General of Canada's Directive on Civil Litigation Involving Indigenous Peoples.
  • Litigation hold letters were issued as required to preserve and facilitate the collection of modern documents.
  • The Ringtail document management and electronic processing software was upgraded to facilitate better document processing.
  • The Memorandum of Understanding (MOU) between ISC and Justice Canada, agreed for the fiscal year, ensured compliance in authorities and risk management practices in Department programs and contributed to the forecasting of advisory and litigation services. The MOU also allowed sectors and Justice Canada to assess and discuss service needs.
  • ISC worked with Justice Canada to ensure that contingency planning was undertaken from a legal and departmental perspective. Plans, informed by ISC's reporting practices, Justice Canada's Ministerial Legal Issues Sheet and weekly senior management briefings were discussed at Directors General Litigation Committee meetings.
  • Where appropriate, the Department has appealed decisions to the right level of court. Advised by Justice Canada, ISC considered risks such as legal, policy, program, financial and reputational risks when determining whether or not to appeal decisions. In 2018–19, the Department did not identify any decisions warranting an appeal.
  • ISC sectors routinely received information on court decisions involving the Department. The internal communication of court decisions, summaries and analysis of impacts to sectors, ensured that approaches to litigation and legal risk, conformed to departmental policies and programs.
 Individuals and Families

Community and Regional Development

First Nations and Inuit Health		 Review of laws, policies and practices

Identify best models for delivering improved services to Indigenous peoples and improve accountability

Indigenous Relationship Risk

There is a risk that the Department will not renew and sustain strong, productive and respectful relationships with Indigenous peoples, communities, organizations and governments to help fulfill its mandate.

Mitigating Strategy and Effectiveness Link to the Department's Core Responsibilities Link to mandate letter(s), government-wide and departmental priorities
  • The Department continued to consult with partners on the reform of the First Nations Child and Family Services program, including, in 2018–19, on updated program terms and conditions, program guidelines, and the allocation of program funding.
  • ISC funded 14 proposals for First Nations-led housing engagement sessions across the regions to ensure that housing reform is guided by the expertise, advice and aspirations of First Nation leaders, technicians and communities, and that it reflects the housing priorities of First Nations at community, regional and national levels.
  • ISC increased support for regional front line officers that implement infrastructure projects, by coordinating joint funding processes with project partners, such as with the Disaster Mitigation and Adaptation Fund through Infrastructure Canada.
  • Funded by the Department, the AFN is working with First Nation partners to conduct Asset Management Pilot Projects. Asset management is a systematic process of developing, operating, maintaining, upgrading and disposing of assets in the most cost-effective manner that supports the delivery of services and protects the full lifecycle of the infrastructure.
    • The AFN is also conducting engagement sessions with First Nation leaders across the country to support the co-development of the Operation and Maintenance Policy Framework, applying an Asset Management approach that includes ongoing operation and maintenance of community assets.
    • The engagement sessions and Pilot Projects support a New Fiscal Relationship by ensuring First Nations have an opportunity to provide input in the development of policies that will impact their communities and can test the mechanisms (such as the Asset Management approach) being considered for implementation. Reports on the engagement sessions and Pilot Projects are expected to be available in 2019–20.
  • Partners such as the AFN and Inuit Tapiriit Kanatami sit on the FNIHB Senior Management Committee to ensure they are engaged on policy matters considered by FNIHB.
  • Engagement protocols with AFN and Inuit Tapiriit Kanatami also set out expectations for mutual transparency and accountability in the area of health.
    • The establishment of Permanent Bilateral mechanisms has provided a forum to inform distinctions-based priorities for health and identify key areas for joint work. This work has informed Budget investments and forward program and policy direction.
  • In 2018–19, the Governance Capacity Table Working Group was created and involved the participation of the AFN, the First Nations Financial Management Board, AFOA Canada, and other Indigenous institutions and organizations.
    • The goal of the Table Working Group is to involve Indigenous stakeholders in the development of necessary governance frameworks, institutional and administrative capacity, government-to-government relationships, and financial management tools for First Nations' effective management of their own affairs.
    • Part of the work being undertaken by the Governance Capacity Table Working Group involves clarifying governance and accountability relationships between First Nations and the Government and First Nations and their communities.
 Individuals and Families

Community and Regional Development

First Nations and Inuit Health		 Review of laws, policies, programs and practices

Enhancing First Nations Child and Family Services

Ensuring First Nation Children on reserve receive a quality education

Fostering Economic Development

Identify best models for delivering improved services and improve accountability

Co-create new and meaningful partnerships

Improve essential infrastructure for Indigenous communities

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