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Seattle Public Utilities 1
12/17/2019 Seattle Public Utilities
Risk Management
and Resilience
Customer Review Panel
Date (xx/xx/xxxx) Department Name Page Number
Seattle Public Utilities 2
Overview
• Integration into Strategic Business Plan
• Respond to questions about risk and resilience
• October exercise
• Rate path and financial impact
Date (xx/xx/xxxx) Department Name Page Number
Seattle Public Utilities 3
Defining Risk and Resilience
• What is risk?
• What is resilience?
• How do risk and resilience
impact our customers?
Date (xx/xx/xxxx) Department Name Page Number
Seattle Public Utilities 4
12/17/2019 Seattle Public Utilities
Risk Management Framework
Date (xx/xx/xxxx) Department Name Page Number
Seattle Public Utilities 5
Risk Management Evolution
Traditional
• React to events
• Focused on hazards/operations
• Silo approach
• Risk Manager is insurance buyer
Advanced Risk Management
• More proactive about reducing risk
• Integrates claims, audit, loss control, risk
transfer techniques
• More collaboration
• Risk Manager provides oversight
Comprehensive Risk Management
• Aligned with mission and values
• Integrated with resilience, forward-looking
• Wide range of risks covered (reputational, strategic,
compliance)
• Incudes “upside risks” (opportunities)
• Risks are owned by all
• Risk appetite and tolerance are specifically
addressed
Risk is bad - transfer
Risk is an expense – reduce cost of risk Risk and resilience optimized to increase value and
achieve goals
Date (xx/xx/xxxx) Department Name Page Number
Seattle Public Utilities 6
Risk Management Steps
Identify
Assess
Develop
Implement
Monitor
Learn
Date (xx/xx/xxxx) Department Name Page Number
Seattle Public Utilities 7
Assessing Risk Levels
Date (xx/xx/xxxx) Department Name Page Number
Seattle Public Utilities 8
Risk Response Options
• Pursue Opportunities
• Transfer
• Avoid
• Remove
• Reduce
• Accept
• Ignore
Date (xx/xx/xxxx) Department Name Page Number
Seattle Public Utilities 9
Interactive Exercise
Instructions:
• Break into 3 groups
• You have 10 minutes for this exercise
• Each group will report back for 2 minutes
• Focus on 6-year timeframe (the “now”)
• Think about balancing short, medium, long term risk
Date (xx/xx/xxxx) Department Name Page Number
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12/17/2019 Seattle Public Utilities
Critical SPU Risks
Date (xx/xx/xxxx) Department Name Page Number
Seattle Public Utilities 11
SPU Risk Table- Major Risks
Date (xx/xx/xxxx) Department Name Page Number
Seattle Public Utilities 12
Technology
Cyber Security
• Assessments
• Penetration testing
• Cyber insurance
Risk Level: High
Financial Impact: Minimal
Technological Change
• Trenchless slurry removal
• UAS survey in watersheds
• Robotic inspections
• Envision the Future Workshop Q1 2020
Financial Impact: Positive
Date (xx/xx/xxxx) Department Name Page Number
Seattle Public Utilities 13
Legal Risk: Claims and Lawsuits
Damage and recovery claims
• Recovery Program: $1.3 million in 2019
• Claims Investigation Team
• Risk Reduction Program
Risk Level: Low-medium
Financial impact: Positive
Date (xx/xx/xxxx) Department Name Page Number
Seattle Public Utilities 14
Workforce
Impacts
• Retirement and succession planning
• Attracting talented staff
• Retaining skilled workforce
Progress:
• Succession planning
• Skills and knowledge transfer
• Apprenticeship programs
• Recruitment strategy + youth engagement
Risk Level: High
Date (xx/xx/xxxx) Department Name Page Number
Seattle Public Utilities 15
Progress and Resilience
DWW Integrated Plan
Solid Waste Comprehensive Plan
Water Seismic Planning
Emergency Management Plans
Facilities Master Plan
Security Master Plan
• Risk Register: Identified top risks
• June report to City Council
• Create risk tools to help teams assess risks and
develop solutions.
• Integrate risk into planning
• Stay ahead of regulatory requirements and find
innovation opportunities.
• Increase communication inside and outside SPU.
Examples of Resiliency in Action
Date (xx/xx/xxxx) Department Name Page Number
Seattle Public Utilities 16
12/17/2019 Seattle Public Utilities
Feedback and
Questions
Denise.Leung@seattle.gov
Danielv.Ward@seattle.gov
Contact
Information:
