Date Published: 
12/14/2010

There are more than 600 agencies in Ontario, 259 of which are controlled directly by the province. The top 14 spend more than $1.7 billion a year. Agencies are typically established to provide specific services to the public, businesses and other government departments, and generally funded by taxes, though some have other funding mechanisms.  Over time,  and especially in good times, agencies and their budgets grew.  And sometimes, the perks grew, which is a perennial sore spot in public sector operations.  The Ontario Power Authority, to take an often-cited example, was once a transitional body, and has now grown to over 200 employees.

These days when Ontario’s deficit is topping nearly $19B, the government is looking for ways to bring spending down. Thirteen agencies and various perks are at stake and are now planned to be eliminated.

Risk Management Perspective: 
  • Identify the risk: Should "the risk of being eliminated" be in our Risk Portfolio?  This is an interesting philosophical point that should likely be considered in more nuanced ways.   
  • An organization should definitely be looking at its circumstances thorugh its funder's perspective:  ask two key questions: 1) is the service still necessary? and 2) is this governance model the most effective one? 

If your funding agency might ask this, we would argue you should be ahead of them on it.

Industry Group: 
Crown Corporations and Government Agencies
Industry: 
Crown Corporations
Industry: 
Government
Country: 
Canada
Risk Class: 
Strategic
Risk Class: 
Financial
Risk Type: 
Business Strategy (Model)
Risk Type: 
Financial Operations - Budgets
Risk Type: 
Public Sector

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