After-Action Review: Enterprise Risk Management

The review aimed to solicit feedback on the successes and recommendations for improvement of ERM, particularly in relation to the ERM process at the Assessable Unit (AU) level. The review identified several key issues that impacted the effectiveness of ERM implementation across the Agency. One of the primary concerns was the lack of clarity and accessibility of ERM training for Mission staff. The training was deemed theoretical and failed to provide adequate guidance on completing the risk profile development process. To address this issue, the ERM Secretariat recommended enhancing existing ERM training content to include an articulation of the Agency's vision for risk management, the relationship between ERM and FMFIA processes, and step-by-step task-level guidance on completing the risk profile development process. Another critical issue was the staggered and compressed roll-out of guidance, template, and risk-appetite statement, which resulted in inadequate time for the development of Assessable Unit (AU) level risk profiles. The ERM Secretariat recommended issuing annual risk profile guidance to Missions earlier, no later than mid-April, to allow for adequate time for risk profile development. The review also highlighted the lack of understanding of the relationship between the ERM and FMFIA processes in some AUs. The ERM Secretariat recommended creating ADS help documents that include a process map on how the ERM and FMFIA processes interrelate, a table with the differences between the ERM and FMFIA processes, and guidance on how AUs can successfully and accurately complete both processes. Furthermore, the review identified a lack of integration of the ERM process with existing program and management operations. The ERM Secretariat recommended revising ADS 201 and ADS 597 to include guidance on how ERM will be integrated across USAID's programmatic and operational frameworks, and how AUs should leverage risks identified throughout the Program Cycle to develop the risk profile. The review also emphasized the need for clear, cross-Agency consensus on the purpose and desired outcomes of ERM. The ERM Secretariat recommended articulating the Agency's vision for risk management at the corporate and individual AU levels and its value in strengthening Agency operations in the new ADS chapter created as part of recommendation 6.1. To address these issues, the ERM Secretariat proposed several recommendations, including enhancing ERM training content, leveraging the train-the-trainer model, making training more accessible, issuing annual risk profile guidance earlier, creating ADS help documents, revising ADS 201 and ADS 597, executing a change management plan, creating a new ADS chapter for Enterprise Risk Management, and leveraging an existing Agency knowledge management or document management platform. The review aimed to facilitate process improvements and potential changes to the ERM process at the AU level, ultimately enhancing the Agency's ability to identify, analyze, respond to, and monitor key enterprise-level risks using a structured and systematic approach to better achieve Agency objectives.