Operating context and key risks
Operating Context
National Defence policies and activities were informed by the evolving security context in which the Canadian Armed Forces (CAF) operated. Strong, Secure, Engaged (SSE), Canada’s defence policy, identifies three broad trends that continued to shape the modern security environment over the past year: the evolving balance of power, the changing nature of conflict, and the rapid evolution of technology.
Trends in global economic development continued to shift the relative power of states with growing multi-polarity, characterized by a return to major power competition, territorial disputes and challenges to the rules-based international order. This trend also created an environment in which non-state actors, including terrorist and violent extremist organizations, were able to continue exercising negative influence and challenges for state authority.
The nature of conflict and its drivers changed considerably over the past years. They have become increasingly complex, as a variety of interrelated conditions could trigger or influence conflicts in often unexpected ways. Economic inequality and climate change, for example, have aggravated the potential for conflict. The increasing use of hybrid tactics by state and non-state actors presented new difficulties in terms of detection, attribution, and response. The advancement and potential proliferation of weapons of mass destruction and ballistic missile technology were also of concern.
As technology continued to evolve rapidly, the CAF placed a premium on maintaining both interoperability with allies and an edge over potential adversaries. Technology, particularly in the space and cyber domains, continued to both enable military operations and society more broadly while also presenting new challenges.
Against the backdrop of this ever-evolving operating context, National Defence ensured it was prepared to execute its mandate. SSE lays out a comprehensive, fully costed plan to ensure that CAF members have the required tools to face the challenging global security environment. It orients the efforts of the DND and CAF to provide Canada with an agile, multipurpose, combat-ready military able to conduct the full spectrum of military operations, simultaneously in multiple theaters. Implementation of Canada’s defence policy was a key activity that shaped all National Defence efforts over the past year to address the threats Canada faced.
Key Risks
As articulated in the operating context, National Defence is influenced by a wide range of external and internal factors, both domestic and international, that can affect how we achieve our mandate. These factors present risks which we carefully consider as we deliver on our roles and responsibilities.
Key risks are identified by aggregating risk information from internal and external sources and considering that information in the context of our mandate. Key risks are articulated in Defence Plan 2018-2023 as follows:
- Defence readiness;
- Defence team capacity;
- Strategic resilience;
- Capability delivery;
- Integrated information management / information technology;
- Financial controls and reporting of inventory and assets; and
- Security.
A number of controls are in place to respond to these risks. Response strategy initiatives covered in this report are outlined in the table below. We will continue to monitor emerging issues, developments, and trends to anticipate and mitigate the risks associated with them. In doing so, we will remain prepared to respond and provide the Government of Canada with advice and options underpinned by ready forces and capabilities.
Risk management in National Defence is underpinned by a Defence Enterprise Risk Management Policy and Defence Enterprise Risk Management Guidelines promulgated in 2018. The policy and guidelines reinforce departmental objectives to further integrate risk management into defence planning and decision-making.
| Risks | Mitigating strategy and effectiveness | Link to the department's Core Responsibilities | Link to mandate letter commitments and any government-wide or departmental priorities |
Defence Readiness There is a risk Defence will not have sufficient force elements of appropriate readiness to respond to concurrent missions or sequential missions before reconstitution is complete. This includes missions that are planned in advance as well as responses to unexpected events which, by their nature, are unpredictable in time, number, location, and effect. |
The Chief of the Defence Staff Force Posture and Readiness Directive was issued in March 2018. It ensures annual readiness levels keep pace with changing domestic and international environments. Joint exercises, including Operation NANOOK, were conducted with Arctic allies and partners and supported the strengthening of situational awareness and information sharing in the Arctic, including with the North Atlantic Treaty Organization (NATO). The Arctic Security Forces Roundtable was held in Halifax in 2018. National Defence continued to establish a joint targeting capability to better leverage intelligence to support military operations and to increase intelligence capabilities and capacity to deliver on the full spectrum of the Defence intelligence mandate. The CAF continued to increase the size of the Primary Reserve Force to enhance the role and capabilities of the Reserve Force in line with Regular Force personnel capabilities. National Defence continued to work towards revised annuitant employment regulations to attract and retain more former Regular Force personnel to the Reserves. In 2018, the CAF offered full-time summer employment to Reservists in their first four years with the Reserves, linking Reservist availability with service opportunity. Defence policy acquisition and modernization initiatives to enhance CAF readiness and response capabilities continued to be advanced and National Defence continued to acquire and/or modernize training simulation systems to better prepare CAF members for operations. |
Ready Forces Defence Team Future Force Design Procurement of Capabilities Sustainable Bases, IT Systems, and Infrastructure |
Mandate letter commitments:
Government-wide priority:
Departmental priorities:
|
Defence Team Capacity There is a risk Defence will not have the right number of personnel with the right competencies, at the right place, and at the right time, which may affect its capability to fulfill current Government of Canada and Defence expectations, in particular as it relates to the implementation of Strong, Secure, Engaged. |
Operation GENERATION has been established as a standing domestic operation to conduct recruiting operations in order to meet immediate growth requirements and employment equity goals and to set the conditions for enduring personnel levels. Operation GENERATION will recruit both Regular and Reserve Forces, including, but not limited to, the areas of intelligence, cyber, and Special Operations Forces. It will promote the recruitment and retention of a diverse, comprehensive, and talented pool of full- and part-time members, including a focus on under-represented populations within the CAF, such as women, Indigenous peoples, and members of visible minorities. National Defence is implementing an integrated strategy for human resources to balance the optimal assignment of tasks between the military, defence civilians, and the private sector. National Defence continued to implement the CAF Diversity Strategy, including instituting mandatory diversity training across all phases of professional development and the integration of Gender-Based Analysis Plus in all defence activities. National Defence continued to prioritize the implementation of the 10 recommendations of the Deschamps Report through Operation HONOUR. Teams and services are provided at Bases and Wings and Military Family Resource Centres to prevent, respond to, and support victims and survivors of gender-based violence. National Defence continued to revise service models relating to universality of service, transition between full- and part-time service, and annuitant employment regulation to retain more fully trained personnel in employable status. |
Defence Team | Mandate letter commitments:
Government-wide priority:
Departmental priorities:
|
Strategic Resilience There is a risk that unexpected events may change the strategic picture such that it requires significant changes to the strategic level of resource planning and result in disruption to National Defence’s business operations. |
Joint exercises, including the Operation NANOOK, were conducted with Arctic allies and partners and supported the strengthening of situational awareness and information sharing in the Arctic, including with the North Atlantic Treaty Organization. National Defence continued to support Evolution of North American Defence and the modernization of the North American Aerospace Defense Command (NORAD) to meet existing challenges and evolving threats to North America. National Defence continued to bolster its ability to respond to increasingly severe natural disasters at home and abroad, and to develop and maintain a robust capacity to respond concurrently to multiple domestic emergencies, through the Force Posture and Readiness Program and CAF plans for response to fire, flood, earthquake, ice storm, etc. in partnership with civil authorities, other government departments, and non-governmental partners. National Defence continued to support Canada's engagement and leadership in international policy discussions through renewed international engagement priorities, enabling a proactive participation in the global security environment. |
Operations Ready Forces Procurement of Capabilities Future Force Design |
Mandate letter commitments:
Government-wide priority:
Departmental priorities:
|
Capability Delivery There is a risk that the complexity of development, program approval, and procurement processes will prevent Defence from meeting its investment targets in critical physical assets (equipment, physical and information infrastructure and real property) in a timely, sustainable and affordable manner to enable CAF operations. This risk is about failing to close gaps, or preventing gaps in capabilities, which may lead to future mission failure. |
National Defence continued to grow and professionalize its procurement workforce through staffing and professional development in partnership with internal and external stakeholders. National Defence continued to aim to reduce project development and approval times by at least 50 percent for low-risk and low-complexity projects through improved internal coordination and delegation, including by operationalizing Project Approval Process Renewal in the department’s Project Approval Directive. National Defence continued to increase the transparency and timeliness of communication with defence industry associations, including instituting meetings between National Defence and Canadian industry through a Defence Industry Advisory Group and other fora. |
Defence Team Future Force Design Procurement of Capabilities |
Mandate letter commitments:
Government-wide priority:
Departmental priorities:
|
Integrated Information Management (IM) / Information Technology (IT) There is a risk to Defence if it does not take advantage of emerging technology to further an integrated IM/IT infrastructure that can provide a flexible and agile information environment conducive to efficient interoperable joint Canadian Armed Forces (CAF) operations and executive Defence decision-making, while achieving value for money and demonstrating sound stewardship. Failure to do so could also imperil the Command and Control (C2) of CAF operations at home and abroad as well as the effective management of the Defence enterprise. |
National Defence continued to advance capital projects to modernize and acquire:
National Defence continued to implement a foundational business intelligence and analytics capability including by having stood up an Assistant Deputy Minister (Data, Innovation and Analytics) in 2018. |
Ready Forces Future Force Design Procurement of Capabilities Sustainable Bases, IT Systems and Infrastructure |
Mandate letter commitments:
Government-wide priority:
Departmental priorities:
|
Financial controls and reporting of inventory and assets There is a risk that the financial reporting of inventory and capital assets in the Public Accounts of Canada and the Departmental Financial Statements may not accurately reflect the true value of the Department’s asset holdings, which may result in a loss of confidence in the Department’s ability to manage the public purse. This risk may result in the Department of National Defence (DND) and the CAF being given tighter controls, resulting in less flexibility and making us less agile, but more importantly, without this visibility and control, Defence is at risk of wasting precious resources that should be directed to higher priority initiatives. |
The Defence Investment Plan was published in 2018 and will be republished on a tri-annual basis with yearly updates. This ensures Canadians can clearly understand future changes to the budget and to deliver on the government's commitment of transparency, results, and accountability. A new Defence Funding Model was approved by the Treasury Board in 2018. National Defence continued to improve materiel visibility and oversight, reduce excess inventory, and enable the reduction of “overbuy” expenditures through improved stock accuracy, increased data clarity and integrity. National Defence continued to implement a foundational business intelligence and analytics capability including by having stood up an Assistant Deputy Minister (Data, Innovation and Analytics) in 2018. |
Procurement of Capabilities Internal Services |
Mandate letter commitments:
Departmental priorities:
|
Security There is a risk that Defence Security Infrastructure is insufficient to ensure that Defence can support its overall defence readiness, capacity, and ability to operate as a trusted partner. |
National Defence continued to advance capital projects to improve current cryptographic capabilities, information operations capabilities, and cyber capabilities. National Defence continued to develop, define, and implement a Cyber Mission Assurance Program that incorporates cyber security requirements into the procurement process in order to protect critical military networks and equipment from cyber-attack. The CAF has created a Canadian Armed Forces Cyber Operator occupation and continues to increase the number of military personnel dedicated to cyber functions. National Defence continued to evolve/adapt counter terrorism and counter violent extremist organization efforts to address the threat stemming from terrorism and the actions of violent extremist organizations, to address Canadian interests, and to support allies and partners. |
Operations Ready Forces Defence Team Future Force Design Procurement of Capabilities |
Mandate letter commitments:
Government-wide priority:
Departmental priorities:
|
Page details
- Date modified: