THUNDER BAY – Thunder Bay’s city council expressed skepticism Monday over a recommendation to add a new managerial position within the city manager’s office responsible for risk management, sending the proposal back to administration for more information.
In a report, staff recommended adding the manager of enterprise risk position beginning in 2024 at an annual cost of $125,000 to the city, a hard sell for some councillors who have expressed a desire to avoid further staffing expansions.
Staff say the role would help implement an “enterprise risk management policy” that will track and mitigate risks more proactively. It would be housed within the city’s strategic initiatives and engagement division, within the city manager’s office.
“In terms of costs, we really do see the value of enterprise risk management all over,” director of strategic initiatives and engagement Tracie Smith told council. “It’s also preventative, so you can see cost savings through insurance claims as well as insurance rates.”
Some councillors wondered aloud whether the position could have helped avert expensive boondoggles like the sinking of the James Whalen tugboat or the collapse of a culvert on River Street.
However, staff provided few details or concrete examples to sway more skeptical councillors.
Asked by Coun. Greg Johnsen (Neebing) for an example of how the enterprise risk management approach has benefitted a municipality, manager of internal audit Don Crupi said one organization had moved its computer servers off the floor after an assessment to avoid flooding risk, but didn’t provide further examples.
Coun. Brian Hamilton (McKellar) asked if the initiative could lower insurance rates, noting rising insurance costs have been cited by administration as significant drivers of tax levy increases in recent years.
City solicitor Patty Robinet responded insurance companies look at the city’s risk management approach in setting premiums, but couldn’t provide estimates of potential savings.
“On our yearly insurance renewals, which we are currently in the process of doing, one of the very specific questions we are asked by our broker… is, do we have a risk manager?” she said. “[Right now], the answer is no.”
Mayor Ken Boshcoff spoke out against the recommendation, calling the duties proposed for the new position "something our managers should be doing on a daily basis."
Boshcoff signalled his intention to hold the line on further staffing expansions in his inaugural address, suggesting the city has a “high ratio of staff to population” compared to other municipalities.
“The budget we’re going to be facing next month is just totally brutal,” he said Monday. “The last thing we need is hiring more people – we just can’t do it.”
Coun. Shelby Ch’ng (At-large) disagreed, calling risk management an “emerging” field organizations are increasingly focusing on. By not having a dedicated risk management staffer, she said, the city is already “behind the eight ball.”
“I don’t think this conversation is much unlike how when we introduced a communications department 30 years ago, we had this, ‘Well, can’t a manager write a letter? Can’t a manager talk to the media? Can’t a manager figure out the logo?’ Yeah, they totally can, but they’re not experts in that field.”
However, Ch’ng said it was clear more information was needed to convince council of the need for the position, moving to refer the item to administration for a report back by July of 2023.
“I want to see the return on investment for this position,” she said.
“I’m going into my ninth year being a member of council … and I’ve seen how much we’ve spent on insurance and lawsuits and loss of work time and injury and loss of equipment, and that’s just what I can think of off the top of my head. My hope is that this position of $125,000 a year … would help us mitigate those things.”
According to a report presented to council on Monday, staff have already “evaluated risks across the corporation and developed a focused risk profile” for the city using the “enterprise risk management framework.”
The results of that exercise will be used in future reports and budget submissions, administration said.
In the meantime, staff reported, the city will continue to implement the enterprise risk management initiative with the help of a consultant in 2023.
