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:

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:

In response, the department carried out key strategies to reduce these important risks. For example, the department:

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

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

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

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

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

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

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

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

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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