Operating context and key risks
Operating context
Economic and social factors continued to impact the department's operations and the strategies it adopted to achieve results. In 2018 to 2019, the department operated in an environment characterized by:
- a healthy economy and labour market, with more jobs created and more money spent by consumers
- a cooling but still strong housing market
- a growing global economy
- large government investments in infrastructure
- aging population
- strong government support for families with children and for seniors
In 2018 to 2019, Canada had the second largest percentage growth in Gross Domestic ProductFootnote 1 (GDP) among G7Footnote 2 countries. The unemployment rate decreased to historic lows throughout this period. As a result, the number of Employment Insurance claimants decreased, reaching its lowest point in more than 20 years. At the same time, the percentage of Canadians aged 15 to 64 who were employed reached an all-time high.
Growing trade disputes and skills pressures still posed risks to the Canadian economy. In addition, new technologies continued to change the way Canadians do their jobs. These changes benefit employers and employees in many ways, such as increased productivity, speed and ease of communication, but they may also eliminate some jobs in the long run.
Challenges in hiring intensified as the percentage of firms reporting labour shortages remained higher than the historical average. Increased labour tightness was observed in most provinces, industries and occupations. Despite this, some groups continued to struggle in the labour market. These groups were, for example, recent immigrants, Indigenous Peoples, persons with disabilities, and people with lower educational attainment.
This is why the department continued to directly support economic growth, often through child benefits and payments to seniors. The department also continued its efforts to ensure Canadians have the right skills for tomorrow's labour market. Doing so, the department contributed to inclusive growth aimed at leaving no one behind. It also supported improvements in Canadian living standards.
Service is another important aspect touching the department's operating context. Clients want better services from the government, like those they get from the private sector. Most clients want online and mobile self-service options that are easy to use, complete and that can be combined with other services. The department continues to work on offering these types of services and consider that from the start when creating or improving services. But it must also make sure that all clients can access the programs and services it offers. The department must then continue to offer and improve other ways to provide these services (in-person and phone).
Key risks
In 2018 to 2019, key risks for the department included being unable to:
- carry out its service transformation projects while continuing to provide good service to Canadians at the same time
- maintain its commitment to protect privacy and personal information
- keep skilled employees to meet current and future operational needs
In response, the department carried out key strategies to reduce these important risks. For example, the department:
- developed a workforce transformation plan to help employees deliver good service to clients despite changes following from transformation projects
- increased its capacity to manage large projects
- improved the way it managed data
- set out strategies to protect privacy and increase security
- put in place strategies to recruit and maintain skilled employees to meet the needs of Canadians.
Of note, the department designated a Chief Risk Officer to improve the management of risk in this large and complex organization.
Specific risks for the department and progress made towards their reduction are provided below.
Key risks
Risk
There is a risk that the department will not meet Canadians' rising expectations of receiving government services in an easy-to-access, timely, accurate and efficient manner.
Risk response strategy and effectiveness
- Continued to develop and carry out the Service Transformation Plan. This is a multi-year plan to improve the way the department delivers services to Canadians.
- In order to mitigate associated risks, the department's Enterprise Architecture Review Board analyzed and applied standardized direction for all projects depending on IT.
- Invested incremental funding from Budget 2016 in targeted improvements to departmental performance and meeting immediate client needs.
Link to the department's core responsibilities
This risk impacts many aspects of the department's operations and affects all core responsibilities and departmental priorities.
Link to mandate letter commitments
- Jobs and innovation
- Government services and operations
Risk
There is a risk that the department will not be able to effectively deliver on the current government's agenda and the department's transformational initiatives while also delivering ongoing services.
Risk response strategy and effectiveness
- Used the department's Enterprise Architecture review Board to analyze and provide standardized direction for all projects depending on IT.
- Developed and applied change management strategies to support the ongoing execution of the Service Transformation Plan.
- Continued to invest in activities that aim to modernize the delivery of benefits.
- Continued to improve definition of roles and responsibilities and accountability for partnerships and vendor management.
Link to the department's core responsibilities
This risk impacts many aspects of the department's operations and affects all core responsibilities and departmental priorities.
Link to mandate letter commitments
Government services and operations
Risk
There is a risk that the personal and sensitive information held by the department may be inadvertently or inappropriately collected, used, safeguarded, disclosed, retained, and/or disposed of by employees or third parties.
Risk response strategy and effectiveness
- Provided training and awareness sessions to employees on the proper ways to handle and protect personal information.
- Applied a strategy for managing personal and sensitive information. It includes ensuring that all applications essential to the mission of the department are secure and authorized through the Security Assessment and Authorization process.
- Continued work to set up an electronic documents and records management solution (that is, GCDOCS). This will allow information to be managed automatically and in the same way everywhere in the department. This work is part of the 2018 to 2023 Information Management Strategy and Roadmap.
- Continued to implement the department's Privacy Framework and Departmental Privacy Program to protect privacy and personal information. Projects included strengthening the identification, assessment and management of risk to privacy. They also aimed to improve the integration of privacy during the creation and design phases of projects, initiatives and programs.
- Started procurement process of a new cyber authentication solution capable of onboarding all departmental programs.
Link to the department's core responsibilities
This risk impacts many aspects of the department's operations and affects all core responsibilities and departmental priorities.
Link to mandate letter commitments
- Government services and operations
- Sustainable infrastructure
Risk
There is a risk specific to individual projects that they may not deliver on time, within scope and on budget, or deliver on their intended benefits.
Risk response strategy and effectiveness
- Improved capacity to manage minor and major programs and projects
- Expanded the Enterprise Project Management Office's (EPMO's) advisory services for risk management, benefits management, and scheduling.
- Developed a benefits management directive to support the production of project benefits that are aligned to departmental outcomes.
- Progressed on the execution of the Project Management Competency Development (PMCD) model.
- Provided training on essential aspects of project management to the community of practice in project management. This included risk management and benefits management.
- Improved control and supervision through active dialogue at Assistant Deputy Ministers and Directors General level governance committees.
- Reviewed all investment projects with an aim to reduce residual risks. These are the risks associated to finances, client expectations, reputation, operations, policies, and regulations.
Link to the department's core responsibilities
This risk impacts many aspects of the department's operations and affects all core responsibilities and departmental priorities.
Link to mandate letter commitments
- Government services and operations
- Sustainable infrastructure
Risk
There is a risk that the department will not be able to sustain a sufficient workforce or attract skilled employees with the appropriate competencies to meet current and future organizational needs.
Risk response strategy and effectiveness
- Continued to implement the department's 2017 to 2020 recruitment strategy and the Integrated Executive Workforce Management Approach.
- Optimized the new ESDC Staffing Direction and worked to modernize processes and services.
- Produced a new competency dictionary and set priorities for learning to support future-oriented skills, transformation, healthy workplaces and foundational skills.
- Maximized the use of survey. These allow the department to understand and respond to new issues in the workforce and promote a more inclusive and respectful environment .
- Managed pay issues through a number of actions to help stabilize the pay system.
Link to the department's core responsibilities
This risk impacts many aspects of the department's operations and affects all core responsibilities and departmental priorities.
Link to mandate letter commitments
Government services and operations
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