2019-20 Corporate Risk Profile Natural Resources Canada Sector-Lead & PRC DGs approved as of say 7oI9 a re 100899_1-NRCan-RNCan_A-2020.00429-p.00012019-20 Corporate Risk Profile Contents Executive Summary... *See Annex I for the risk assessment matrix and approach. Maximum risk rating level is 25. Introduction «sess Purpose.. 2019-20 Corporate Risk Snapshots. 1. Competitiveness of Natural Resources Sectors and Market ACCESS ...nnnnnnsses 2. Safety and Security of Energy Infrastructure. 3. Innovation, Science and Technology... 4. Climate Change Adaptation and Mitigation 5. Public Confidence and Engagement, 6 7. 5 sssesseesseseees 6 Cybersecurity Hazards and Emergency Management... 8. Enabling Program Delivery. Appendix I ~ Risk Assessment Matrix ‘Appendix II ~ NRCan Corporate Risk Management Cycle . ‘Appendix III ~ Definitions ..... sssesseeseeneen Sd 2 ‘80000899 _2.NRCan-RNCan_A.2020-00429-p.0002s21itya) 2019-20 Corporate Risk Profile Executive Summary Managing risks and seizing opportunities facing the natural resources sector is crucial as it plays a fundamental role in Canada's economic prosperity. As a result of several consultations with sectors, Natural Resources Canada’s (NRCan) 2019-20 Corporate Risk Profile (CRP) has been developed to provide senior management with an overview of the most pressing risks NRCan is facing this fiscal year and the proposed actions to mitigate them. ‘The 2019-20 CRP for NRCan contains: Five strategic priority risk areas: ‘+ Competitiveness of Natural Resources Sectors and Trade + Safety and Security of Energy Infrastructure ‘+ Innovation, Science and Clean Technology ‘+ Climate Change Adaptation and Mitigation ‘+ Public Confidence and Engagement ‘Three operational priority risk areas: © Cybersecurity «Hazards and Emergency Management ‘+ Enabling Program Delivery Concrete and measurable actions to mitigate the risks are critical to allow Canada to fully realize the economic and social benefits of its natural resource ‘endowment. For example, actions that eliminate or soften barriers to market access and trade, to Undertake responsible resource development and, thus, to ensure public and investors confidence. ‘As part of the maturation of its risk management approach, NRCan will continue to place emphasis on strengthening the monitoring of the implementation and reporting on the effectiveness of risk mitigation responses to Senior management on an ongoing basis, as well as improving risk rating techniques. ‘The Corporate Planning Network, the Planning and Reporting Committee and the Departmental Audit ‘Committee made a valuable contribution in providing advice on how to strengthen integrated risk management at NRCan. ‘Through communications and training activities, NRCan will continue to raise awareness among employees so that risk is efficiently integrated across the department at all relevant opportunities. 2 The curent or origina evel of sk, which considers current controls prior tothe adlion of risk responses or mitigation strategies. 3 ‘80000899 _3-NRCan-RNCan_A.2020-00429-p.0003,2019-20 Corporate Risk Profile 5.21140) ‘The table bellow summarizes the 2019-20 CRP including accountabilities, linkages to the Departmental Result Framework (DRF) and the assessment of the inherent and residual risk for each risk priority area. 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[if NRCan cannot address its ageing assets (real Property S&T equipment and IT Infrastructure), fe gring |i dvece tment angoeranbein | cuss | gy | cR42 Program | sping to new and emerging hora proses ond’3 [and issues, the department's ability to effectively deliver its programs may be hindered. Bee AT TT FRE SSSA HATH A BPR, nT Fang eT STE ‘The graphs below are a visualisation of both inherent and residual risk level ratings ofthe 2019-20 corporate risks. Inherent Risk Residual Risk Compesivenes of Natural Resources Sectors and Trade Safety and Security of Enarey Infrastructure Innotation, Selence and Technology Climate Change Adaptation and Miigation Public Confidence and Engagement ‘Acronyms / Definitions ‘SPAS: Sati Poey and Resuts Sector (0cS: oe of the che Scent (CR Core Resporstty ES: Energy Secor Po-West:Ingencus Partnership otice {GR 1: Natural Resource scence and Rsk (CFS: Contsan Fores Secor ries tgaton {nS Lands ana Heals Sector PMO: Major Projects Management {CR 2! Imoveve and Sustainable Natal IETS: Innovation sna Energy Techology ome Resouces Development ‘sete JARS: indigenous Aas and (3: Global Competive natural (CSS: Corporate Management and Reconiaton sector Resource Sectors ‘Srvess Seter DDR: Departmental Rests Framework 5 ‘A0000899_S:NRCan-RNCan_A-2020-00429-p.0005'5.69(4%) (0) Introduction Natural Resource Canada's (NRCan) Corporate Risk Profile (CRP) describes the risks that could impede on the department's ability to fulfil its mandate. More specifically, these would be risks which affect NRCan’s capacity to deliver on its strategic priorities and operations. Fiscal year 2019-20 marks the introduction of a renewed emphasis on integrated risk monitoring in the department, one which is supplemented by this CRP. Purpose ‘The purpose of the NRCan CRP is to: » Provide senior management with assurance that corporate risks are identified, managed and monitored; > Inform NRCan’s planning, strategic priority setting and decision-making; and > Communicate to all staff the Department's corporate-level risks. ‘The 2019-20 CRP details each corporate level risk including: > Astatement and analysis of each risk area; > A description of actions being taken to reduce these risks; and > Accountabilities for these actions. Moreover, the CRP should be integrated in relevant activities by employees, managers, and senior leaders across the ‘organization to ensure that corporate risks are well incorporated in planning, decision-making and resource allocation. NRCan’s Integrated Risk Management Approach NRCan developed the Integrated Risk Management Policy Framework (IRMPF) in 2015 to apply for a 5 year period. This framework has been used to develop the 2019-20 Corporate Risk Profile (CRP), which is also informed by: > The Treasury Board Secretariat Framework for Managing Risk; and » Direction from the Departmental Executive Management Committee, the Departmental Audit Committee, the Planning and Reporting Committee and the Corporate Planning network at NRCan. ‘The department's risk management approach is guided by a number of key principles including: ‘Systematic identification of risk: Beginning with an environmental scan including review of Mandate Letter Commitments, ‘government priorities, global economic and environmental context, federal budget, sector business plans, audit and evaluation reports; Integrating legal implications as part of the larger risk discussion in the department, the CRP is created with consideration of legal risk as an aspect of each corporate risk rather than as a separate risk unto itself; and Early engagement of senior management through various level management committees to approve the risk areas, prioritize risks and develop risk management and mitigation strategies. ‘80000899_6-NRCan-RNCan_A.2020-00429-p.00062019-20 Corporate Risk Profile ‘Integration of risk in decision-making: © Corporate risks are regularly considered by senior management in discussions on policy, programs and resource allocation; and © Risks and risk mitigation strategies are integrated in, and used to inform, strategic and ‘operational planning at all levels of the department. + Clearly defined accountabilities for risks: © Regular senior management review of risk areas and management strategies at mid-year and year-end; and For implementation and monitoring of risk strategies and course correction, as required. ‘The illustration below shows the risk management cycle at NRCan, for further information pertaining to this cycle, please see Appendix II. Consideration of Corporate Asks in Provity Seting, Strategic and Operational Planning isk Monitoring nd | Cee i ‘Ongoing Communication and Training Publi Reporting (OP, DRR, GFR) Consideration of Corporate Risks in MC3/TB Subs Risk Monitoring and Reporting for 2019-20 NRCan’s 2019-20 risks, as identified in the snapshots contained in this document, are monitored on an ‘ongoing basis and reported to senior management and lead-sectors to ensure: + The effectiveness of the risk mitigation strategies in reducing the risk level; That we take into account the changes in the operating environment, internally and externally Risk monitoring is conducted both formally and informally. Formal mechanisms for reporting on corporate risks include: The Quarterly Reporting process; The Departmental Plan; ‘©The Departmental Results Report; and The Report to the Departmental Audit Committee. ‘The following section presents snapshots for each risk area, detailing risk descriptions accountabilities, mitigation strategies as well as residual risk and linkages to departmental details. 7 ‘40000899_7-NRCan-RNCan_A-2020-00429-p.0007s.24(tye) 2019-20 Corporate Risk Profile 2019-20 Corporate 1. Competitiveness of Natural Resources Sectors and Market Access k Snapshots eer Pa ery Risk If NRCan does not have the right policies and programs to ‘Statement: | sufficiently support innovation, market diversification/ access and to attract investment, Canada’s natural resource sectors may fall behind global competitors. Risk Canada’s natural resource sectors are at the nexus of Canada’s, Description: | growth and prosperity, directly and indirectly accounting for 17% of GDP and over 1.8 million jobs in 2017. Impact The Government of Canada has an important role to play in setting conditions to make Canada an attractive place for natural Probability resources firms to invest. It also has a major role to play in advocating for favourable trade policies and challenging unfair ‘ones, supporting market access and infrastructure, and regulatory and fiscal competitiveness, NRCan is mandated to promote and enhance the competitiveness of Canada's natural resources sector, and participate in the enhancement of market access. Risk Category: Linkages: Strategic Departmental Results Framework: ‘Accountabilities: > Core Responsibility 2 : Innovative and Sustainable Natural Resources Development Lead: Svatesic Porcy |” Core Responsibilty 3: Globally Competitive Natural Resource Sectors and Results Sector ‘Secondary: Energy Sector, Canadian Forest |» Build on the work of Generation Energy and work with provinces and territories to Mandate Letter Commitments: Service, Lands and accelerate clean growth strategies. Minerals Sector, > Make strategic investments in our clean technology sector Innovation and Energy | > Enhance tax measures to generate more clean technology investments. Technology Sector » Defend Canadian workers potentially affected by trade disputes, including in the aera forestry, energy and mining sectors. Committees: Policy ‘and Science Integration | Government of Canada (GoC) Priorities: Committee (PSIC), > Exports and Investment ey Se @ | 7 2008 and Innovation Docent 24 | > Canada in the World oe » Environment and Climate Change Key Drivers Potential Impacts Coenen es » Canada’stax, |» Canada’s natural environmental, resource sectors, and regulatory lose 8 ‘80000899 _8.NRCan-RNCan_A.2020-00429-p.00082019-20 Corporate Risk Profile s.21(tNa) Current initiatives supporting mitigation response: + Supporting enhancements to tax measures that can promote ean technologies and facilitate investments in research, development and manufacturing of clean technologies. + Supporting legislative and regulatory modernization processes that rebuild public trust, advance better rules for the review of major projects, including more predictable review timelines, and provide companies with more clarity about what is required of them, * Collaborating with provincial and territorial government counterparts to develop the Canadian Minerals and Metals Plan (CMMP) and action plan. The Plan will position mineral development in Canada for long-term success and re-establish Canada as the leading mining nation to attract investment in the global market. * Growing the Forest Industry through Forest based solutions including the Clean Energy for Remote & Rural Communities, ‘wood use as a low-carbon alternative, the Bioeconomy Strategy, and Tall Wood Building Initiative to support product diversification and! innovation in the forest sector. * Considering and implementing the recommendations of the Resources of the Future and the Clean Technology Economic Strategy Tables to improve competitiveness and unlock future growth, ensuring Canada’s natural resource sectors remain a source of jobs and prosperity for all Canadians. + Working closely with Crown-Indigenous Relations and Northern Affairs Canada to ensure clarity for investors in natural resources sectors as the Recognition and Implementation of Indigenous Rights Framework is established, polices, cause ‘compettiveness significant and share in the barriers in slobal market, attracting notably vis & vis investment and the U.S. moving ee Canada does not utilize its natural resources at full potential, which has negative impacts on the ‘economy (GDP and employment), as well as its ability to achieve inclusive growth and effectively advance domestic policies. Thaufficient Canadian firms transportation cannot access infrastructure for | domestic and natural international resources, markets. : Slow deployment [> Canada’s of innovative technologies which impact Canada's postion in the clean technology export market economic growth and transition towards a low- carbon economy are not optimal NRCan will help advance the growth of the Canadian clean technology sector and the transition to a low-carbon economy. Current initiatives supporting mitigation response: * Encouraging new partnerships between natural resource companies to bring innovative technologies to commercial readiness. + Continuing the Clean Growth Program, Investments in Forest Industry Transformation Program (IFIT), and the Wood Program, 9 ‘80000899_9.NRCan-RNCan_A.2020-00429-p.0009,2019-20 Corporate Risk Profile 5.1800) s.21(14@) Trade Uncertainty is growing (e.9. significant protectionism in key markets). Market access is lacking and Canada is losing global market share and competitiveness, > Canada loses its leading position in the global market, notably with the US. (the largest trading partner and most integrated value chain in critical sectors), Diversify and strengthen Canadian Natural Resources markets, Current initiatives supporting mitigation response: Advancing Canada’s positions during trade negotiations, advocating favorable trade policies and challenging unfair ones, in consultation with provinces and territories. Diversifying markets through the Trans-Pacific Partnership, and programs such as the Expanding Market Opportunities program in the forest sector. Enhancing collaboration and building national unity through intergovernmental fora such as the Federal-Provincial Task Force on Softwood Lumber. Continuing to work with the Joint Industry Government Working Group to address oil and gas industry competitiveness concerns. Continuing to work on WoodID initiative, aimed at reducing illegal wood trade to protect market access for Canadian wood products, Residual Risk (Risk remaining after risk responses have been applied) 10 A0000899_10.NRCan-RNCan_A-2020.00429-p.001016,2) s.24(tya) 2019-20 Corporate Risk Profile 8.69/14) (9) 2. Safety and Security of Energy Infrastructure era) Estimated Risk Level If NRCan does not have sufficient capacity to help the energy sector prevent, prepare for and respond to disruptions and emergency events involving critical energy infrastructure, there could be significant impacts on the health and safety of Canadians, the environment and the economy. Impact Risk Description: Probability NRCan is mandated to responsibly use and manage Canadian natural resources to ensure the safety of Canadians, the environment and the economy. The Minister of Natural Resources has a legislative responsibility to identify risks within or related to his or her area of responsibility, and to develop policies, programs, and measures to address those risks, including as it relates to prevention, preparedness, response, liability and compensation. Linkages: Risk Category: Strategie Departmental Results Framework: | Accountabiliies: | Secondary Sector: Major Projects Management Office > Core Responsibility 1: Natural Resource Science and Risk Mitigation > Core Responsibility 2: Innovative and Sustainable Natural Resources Development Core Responsibility 3: Globally Competitive Natural Resource Sectors Mandate Letter Commitment: > Continue collaboration with the United States and Mexico in areas of mutual benefit, Responsible Faeroe Pestana including energy security and cross-border infrastructure. Security, Emergency Management and Government of Canada (GoC) Priorities: Intelligence > Safety and Security > Sustainable Infrastructure ‘Committee (SEMIC) Con orcad Cm re eer ® Risks to energy | > > Work with stakeholders from within and outside of GoC to manage infrastructure risks and emergencies and ensure the safety, security and resiliency from a variety of of energy infrastructure systems. threat vectors (eg., natural Current /es supporting mitigation response: disasters, man- ‘+ Strengthening GoC’s regulatory, policy and legislative made events, frameworks for security and resiliency (e.g., cyber attacks) have increased. ‘© Maintaining S&T capacity and enhancing information-sharing mechanisms with private sector energy infrastructure ‘owners/operators with a view to share threat analysis and u A0000899_11-NRCan-RNCan_A-2020-00429-p.00112019-20 Corporate Risk Profile 8.15(1) LA, 8.1602) s.21(14@) Residual Risk (Risk remaining after risk responses have been applied) mitigation advice (e.9., Energy and Utilities Sector Network). Engaging in knowledge and skills transfer sessions and simulation exercises (e.g,, Canadian Resources Infrastructure Resilience Nexus). Leveraging departmental and external research and development to enhance resilience via threat detection, vulnerability identification and mitigation (e.g., National Energy Infrastructure Test Centre). Strengthening Canada, ~ U.S. and international collaboration on energy security and resilience through joint initiatives and ‘muttlateral fora (e.g., Canada-U.S. Framework on Cyber Security in the Energy sector 2 ‘A0000899_42.NRCan-RNCan_A-2020.00429-p.0012s.24(tna) 2019-20 Corporate Risk Profile 3. Innovation, Science and Technology Prose ryy Estimated Risk Level Risk Statement: If there is an insufficient emphasis on science, lack of Innovation or a failure to harness emerging technologies, it may impact the competitiveness, growth, and environmental performance of Canada's natural resources and clean technology sectors. Impact Risk Description: The global economy is moving towards a greener future through science and innovation. Science and innovation enable natural resource to accelerate the development of new technologies and products that will contribute to clean economic growth and jobs. NRCan is responsible for supporting the creation and adoption of clean technology in the three key natural resources sectors of the Canadian economy: energy, mining and forestry. Probability Investments and actions are required to respond to trends in the science and technology (S&T) environment, encourage investments in innovation, and provide more support for Canadian companies to remain competitive and to take advantage of global ‘opportunities in key natural resources and clean technology markets. Risk Category: Linkages: Strategic ‘Accountabilitie: Departmental Results Framework: > Core Responsibility 1 - Natural Resource Science and Risk Mitigation > Core Responsibility 2 ~ Innovative and Sustainable Natural Resources Development. Lead: Innovation and Energy Technology Sector ‘Secondary: Energy Sector, : Canadian Forest Service, Land and ee oar Minerals Sector, Office of the Chief | > Make strategic investments in our clean technology sector/Enhance Canada’s Scientist, Indigenous Affairs and Reconciliation Sector, Strategic Policy and Results Sector Responsible Committees: Science and Technology Board, DG Science and Technology Committee (DGSTC), Policy and Science Integration Committee (PSIC) Key Drivers INNOVATION: > Natural resource sectors ‘comprise 17% of Canada’s GOP, but energy production tax measures to generate and attract more clean technology investments > Work with the Minister of Innovation, Science and Economic Development and other responsible ministers to support continued innovation, job creation, and the use of clean technologies in our natural resource sectors, > Build on the work of Generation Energy and work with provinces and territories to accelerate clean growth strategies Government of Canada (GoC) Prior > Jobs and Innovation > Environment and Climate Change Prem arras > Develop strategic partnerships to support innovation in natural resource sectors. Current initiatives supporting mitigation B /A0000899_43:NRCan-RNCan_A-2020.00429-p.0013s.21(14@) 2019-20 Corporate Risk Profile ‘and use accounted for 81% of response: Canada’s GHG emissions in + Develop partnerships through the 2015 implementation of the Forest Innovation Canada’s commitment to > Program (FIP), Clean Growth Program (CGP), reduce GHG emissions by 30% and Energy Innovation Program (EIP), by 2030 relative to 2005 Investments in Forest Industry Transformation emission levels (IFIT), Bioeconomy Strategy and Green Mining Investment in innovation is Innovation at Canmet MINING. constrained by the operating * Through the Clean Technology and Resources context facing natural resource | * Natural resource of the Future Economic Strategy Tables, NRCan firms (e.9., high infrastructure sectors could supports the development and implementation burden, commodity eyeles, ana | become less of innovation and competitiveness measures. fr _ ited ti " competitive and ‘Through the Clean Growth Hub (co-led with eee their contributions ISED), improve stakeholder access to eccevetent) Ar cai ckec| Dee to the Canadian Government of Canada clean technology improve the bottom line of economy could be aoe firms through efficiencies reduced Global demand for clean technologies expected to grow »» Assume a global leadership role in clean energy and considerably as countries dean technology innovation. transition to a low-carbon economy Current initiatives supporting mitigation response: ‘+ NRCan plays an active leadership role in Mission Innovation, serving as the Chair of the Steering Committee, and participating in all eight international clean energy innovation challenges.? Canada hosted the 2019 Mission Innovation (MI4) and Clean Energy Ministerial (CEM10) that brought together international energy ministers and high level delegates, and provides a robust stage to accelerate global lean energy innovation and uptake. ‘+ Provide Canadian clean tech producers that specialize in clean technology with business ‘opportunities/partnerships in developing countries through support such as the United Nations Climate Technology Centre and Network. ‘+ Increase participation of clean technology companies and federal researchers in international standards setting bodies. Demand for less carbon intense resources is requiring investments in innovation > Invest in research, development, demonstration and deployment projects that advance solutions to pressing environmental challenges. Current initiatives supporting mitigation 2-The eight Innovation Challenges are: (1) Smart Grids, (2) OfF-Grid Access to Electricity, (3) Carbon Capture, Ublzation, and storage, (4) Sustainable Biofues, (5) Converting Sunight, (6) Gean Eneray Materials, (7) affordable Heating and Cooling of Bulings, (8) Hydrogen. hitp://mssson-innovation net/r work/nnovabion-chalenges 4 A0000899_14.NRCan-RNCan_A-2020.00429-p.00149.46(2) s.20(tyay 2019-20 Corporate Risk Profile response: ‘+ Continue to implement Canada’s mission innovation pledge to double federal investments in clean energy research, development by 2020. ‘+ Advance five prize-based innovation challenges launched in 2018-19 aimed at finding breakthrough solutions to environmental challenges, through the Impact Canada Initiative."; ‘+ Support demonstration and deployment projects to implement near-commercial ready technologies such as Smart Grids, Electric Vehicle and Alternative Fuel Infrastructure, Energy Efficient Buildings, Emerging Renewables, and Clean Energy for Rural and Remote Communities. The evolving S&T environment | > thout federal | > Provide federal leadership and scientific expertise to is resulting in transformative leadership in advance sustainable energy technologies ‘and disruptive trends at a pace | science and that is making it dificult for technology, the Current initiatives supporting mitigation natural resource sectors to private sector respon: adapt. may be slow to * Continue to deliver a coordinated suite of RD&D > Natural resource sectors have develop or adopt and related scientific activities through the lower rates of research and new technologies. Program of Energy Research and Development development (R&D) compared | * Without federal (PERD) and Eneray Innovation Program (EIP) to other sectors’ Proactivity in that fund federal government labs and adapting research, academic institutions and private regulatory and sector organizations to carrying out legislative collaborative early research and development, processes and test and demonstrate new sustainable energy systems to new technologies and develop codes and standards. and emerging technological advancements, | > Raise awareness and collaboration to develop an the private sector | integrated response, and adjust programs, including may lose its scientific endeavours, to respond to new and competitive edge | emerging trends (e.g., artificial intelligence) in the natural resources sector. Current initiatives supporting mitigation te respon: + Maximizing the use of existing data and collecting new data in order to better respond to an evolving environment, particularly through the Clean Technology Data Strategy * Working to focus our science within Canada Centre for Mapping and Earth Observation on the themes of land, water and infrastructure to, among other objectives, improve Canada's 3 The fie clean technology challenges ar are: Cush It! (mining), Power Forwar (energy), The Sky's the Limit (bojet jets), Wornen in Cleantech, Indigenous Of-desel. See: hitps://impact.canada.ca 4 Natural Resources Canada, Clean Technology in Canada's Natural Resource Sectors: A Dscussion Paper, 2016 15 ‘A0000899_15.NRCan-RNCan_A-2020.00429-p.001516,2) s.24(tNe) 2019-20 Corporate Risk Profile monitoring and reporting on its landmass and waters with state-of-the-art satelites and sensors. * Support the GoC’s new science vision for Canada to identify synergies and collaborative opportunities in addressing government > priorities and the science, infrastructure, equipment and IM and IT required. This collaborative approach with other federal organizations to maximize resources will better equip the GoC to evolve in tandem with the evolving S&T environment. + Continue to work with ECCC on interdepartmental collaboration regarding high performance computing (HPC) infrastructure. HPC’s main focus is on a shared data platform (shared standards and interoperability), with satellite-based earth observation data and internet-connected sensors. > Collaborate with other government departments and the National Research Council to support federal green initiatives, Current initiatives supporting response; + Supporting and participating in the Clean Growth Hub, a government focal point that helps connect clean technology innovators and adopters to all federal clean technology programs and services in order to ensure an environment, which supports technological innovation. * Collaborating with Public Services and Procurement Canada, National Research Council, and Treasury Board Secretariat through Greening Government Services to provide technical support and advice. Providing Canadian producers specializing in clean technology with business opportunities/partnerships in developing Countries through support such as the United Nations Climate Technology Centre and Network tigation. 16 /A0000899_16-NRCan-RNCan_A-2020.00429-p.0016s2nitya) 2019-20 Corporate Risk Profile PUBLIC DEMAND AND ENGAGEMENT > Changing consumer » Reduced public | > Increase NRCan‘s ability to adapt to changes in preferences, slow adoption of confidence and public confidence patterns, innovative technology and support shifts in consumer demand environmental ee ae Paere eee commitments are Current initiatives supporting mitigation natural resource sectors nck ae Leland profitability and sustainability, | Reduced public + Undertaking regular engagement and confidence if new consultation with Indigenous communities on technologies do regulatory and policy development for all not provide the aspects of natural resources development. same level of + Enhancing public trust by supporting legislative service processes to increase government regulation and environmental assessment for approval of projects, while ensuring competitiveness of our natural resources sector. Residual Risk (Risk remaining after risk responses have been applied) v7 /A0000899_47-NRCan-RNCan_A-2020.00429-p.00172019-20 Corporate Risk Profile s20ctne) 4. Climate Change Adaptation and Mitigation Prseraerryy Par] Te] Risk Statement: IF NRCan's policies and programs fail to sufficiently reduce Canada’s greenhouse gas emissions and support adaptation to the impacts of climate change, Canada will not meet its international commitment to reduce GHG emissions, and communities and natural resource sectors will face greater uncertainty and potential climate related threats. Impact Greenhouse gas emissions are continuing to rise and the impacts of climate change are Probability increasingly felt across Canada. Canadian industries and communities are becoming more aware of the need to mitigate and adapt to climate change. Canada’s natural resources sectors have an opportunity to show leadership in climate change mitigation and adaptation. Risk Category: | Linkages: | Strategic DRF: > CR 1: Natural Resource Science and Risk Mitigation > CR 2: Innovative and Sustainable Natural Resources Development Lands and Minerals Sector, Energy Sector Secondary: Major Projects Management Office, Indigenous Partnership Office-West, Canadian Forest Service, Innovation and Energy Technology Sector, Indigenous Affairs and Reconciliation Sector Mandate Letter: Review Canada's environmental assessment process > Put more low-erission vehicles, including electric vehicles, on the road Build on the work of Generation Energy and work with provinces and territories to accelerate clean growth strategies > Enhance Canada’s tax measures to generate and attract more clean technology investments > Make strategic investments in the clean technology sector Responsible Committees: | Government Priot Policy and Science Integration | 5 Effective Action on Climate Change Committee rom’ renrriprrrry ‘Adaptation » Canada’s climate is changing | » Infrastructure may be | » On-going support for adaptation to reduce (increased average and ‘compromised, resulting risks and increase resilience in communities extremes of temperature in lack of access or and natural resource sectors. and precipitation, decrease increased environmental of sea ice volume, changing and economic costs. Current initiatives supporting 18 ‘A0000898_18-NRCan-RNCan_A-2020.00429-p.0018s21tyay 2019-20 Corporate Risk Profile sea level) Impacts on the short and mitigation response: > Impacts of climate change long-term viability of + Supporting projects and activities to are being felt in all regions resource projects and improve adaptation knowledge and and sectors. communities dependent practice in coastal management, energy, fon them, ‘mining, and forestry in order to enable > Communities may incur action to adapt to a changing climate. social and economic + Delivering a 10-year research Agenda for losses due to an inability Canada’s forests to increase awareness of to adapt to climate climate change risks and align efforts to impacts. conduct and implement research in > Increased demands on mitigation and adaptation activities. ‘governments to respond ‘Providing new geoscience knowledge in to the damages incurred. Northern and coastal areas to inform climate change risk reduction strategies so that transportation and community infrastructure will be more resilient to > Availabilty of scientific and climate change ‘economic information, as Developing new methods to evaluate the well as collaboration impact of climate change on mine waste between levels of management. ‘government and the private + Building capacity to integrate adaptation sector around adaptation. in decision-making through activities such as training and internships. > International actions to > Lack of action to take | Working collaboratively with all levels of adapt to climate change also | @dvantage of government, indigenous organizations, have impacts on Canada. ‘opportunities from a professional associations, industry, and changing climate academia to advance adaptation In policy and including those for practic. northern development Mitigation Primary drivers include: > Accontinued increase in > Canada will not achieve | > Make investments and work collaboratively Canadian (and global) GHG its international with different levels of government and emissions levels. ‘commitment to reduce Indigenous Peoples to reduce GHG emissions > Commitment under the Paris | emissions. Current initiatives supporting ‘Agreement to reduce total’ | > ‘The opportunty to t u ation response: HG emis tion Canada srso eae coe | Caeser eee «Work collaboratively with provinces and impact of enor Ppaleiee eh ear through over SO actions under the Pan > Impact of energy efficiency renewable and efficient i a Tee eae cea measures to significantly energy, innovative al oi f cc ‘on Clean reduce GHG emissions. technologies and goods are > Shift towards clean energy and services would be + Tovest ina suite of clean energy within the global energy lost. technologies under the Green system. > Failing to reduce GHG Infrastructure program including Clean > Rapid deployment and ‘emissions may increase Energy for Rural and Remote sh falling costs of clean the rate, severity and Sarena Emerging eter le Power, ‘technologies, which may cost of climate change rt Grids, Electric Vehicle anc also impact competitiveness. impacts faced by Alternative Fuel Infrastructure, and Energy > Decreasing private sector ‘Canadians. Efficient Buildings, + _Improve electricity interconnections 19 A0000899_19-NRCan-RNCan_A-2020.00429-p.0019a4 21110) 2019-20 Corporate Risk Profile investment in clean energy. | > Climate change impacts, Between provinces to enable increased such as wildland fires «generation and transmission of renewable and pest disturbances, electricity across Canada, AS Seconcany, diese, ie sve would reduce the ability | + Provide federal organizations and enna of Canada’s forests to stakeholders with information, tools and Pag sustaiiobie Develowinen sequester carbon. services to improve energy efficiency. Goal ?forcean and | increased need fr ekg with prvines end tetris to affordable San support of key increase stored carbon in forests through be reeset en infrastructure for natural innovation, increase the use of wood for relationships and positioning | resources projects for construction, and generate bioenergy and regarding efforts to reduce | the clean energy bio-products. emis ppat transton. «Wiking colabortvely wth ater Lack o publ suppor for | 5 Faure to deliver resus, |” goverment departments an federal behevioara! ‘changes. losing the opportunity to ‘organizations to inform and influence wes improve competitiveness Canada's policy, research, and regulatory Pag nic Conic nee Ine and diversify energy response to clean growth and climate environmental sustainability | 270 avert energy pa ors > Public falls to see the ‘+ Pursuing international collaboration with resources sector ‘outcome of significant key partners to accelerate the transition to investments. wi federal investments in clean energy, including through programs > Indigenous communities in clean tech innovation and initiatives under Mission Innovation northern and rural areas are | ang infrastructure, and the Clean Energy Ministerial. at great risk from climate | ,, ‘+ Exploring the potential for small modular change reactors to provide safe, reliable, and clean energy in the future. + Improving efficiency, using clean power and cleaner fuels, and introducing new technologies to capture and store carbon > Adaptation of northern emissions, to ensure the longevity of and rural areas call for Canada’s oil and gas industry. strategies that + Coseading the Powering Past Coal incorporate Indigenous Alliance, which aims to accelerate clean peoples’ perspectives, growth and cimate protection by rapidly priorities and aspirations. phasing out traditional coal-fired electricity rojects. Residual Risk (Risk remaining after risk responses have been applied) 20 |A0000899_20-NRCan-RNCan_A-2020.00429-p.0020s.21(tna) 2019-20 Corporate Risk Profile 5. Public Confidence and Engagement Risk Information Pes ey Risk Statement: If NRCan's decision-making is not transparent, evidence-based, inclusive of safety, environmental and social considerations, and is not aligned with the Government of Canada’s commitment to a renewed relationship with Indigenous peoples, then Canadians may lose confidence in natural resources development. Impact Risk Description: Probability Linkages: }epartment ‘Accountabilities: > Core Responsibility 2 - Innovative and Sustainable Natural Resources Development Lead: Energy Sector > Core Responsibility 3 - Globally Competitive Natural Resource Sectors Strategic jesults Framework: Secondary: Major Projects Management Office, Indigenous Partnership Office-West, Indigenous Affairs and Reconciliation Sector > Work with provinces and territories to accelerate clean growth strategies > Modernize the National Energy Board > Review Canada's environmental assessment processes Mandate Letter Commitments: Responsible Committees: Major Projects Deputy Ministers Committee, Indigenous Advisory and Monitoring Committees for the Trans Mountain Government of Canada (GoC) Priorities: Expansion and Line 3 Projects, Indigenous Issues and Interests Committee, Policy and Science Integration Committee (PSIC) > Exports and Investment > Renewed relationship with Indigenous Peoples > Safety and Security Cory rember Coenen cry PUBLIC DEMAND AND ENGAGEMENT Pap coadns valve tie > Canada’s > Continue to engage Canadians and utilize public Serene competitiveness is feedback to shape Canada’s energy future. concerns about potential wn a a impacted by increased costs from prolonged engagement processes. > Investment decisions face delays or reversals, > Low public confidence will deter investment in impacts of natural resources development have an increased role in discourse » Canadians expect ‘opportunities to ‘+ Guiding government decisions to support Canadian families, businesses, and communities through the principles identified as part of 2 A0000899_21-NRCan-RNCan_A-2020-00429-p.00212019-20 Corporate Risk Profile participate and want assurance that natural resource development. ‘supports the safety and security of Canadians during resource development > New and more efficent channels of ‘communication are increasing the public's influence on the decision-making process. Canadian natural resources development. Delayed deployment of infrastructure and/or technologies could delay the low-carbon transition, Access to market opportunities for natural resources may be hindered. Potential for negative economic impacts through lost opportunities for natural resources projects. Inefficient consultation processes may result in economic impacts as a result of opportunity costs for natural resources projects. Canada’s energy future. The principles are: saving energy; powering clean communities; Using more renewable fuels; and, powering the word. ‘© Ensuring that that the new CER is built on modern effective governance, more inclusive engagement, greater Indigenous participation, stronger safety and environmental protection, and more timely project decisions that enhance certainty for industry. Increase the quality and accessibility of energy information for Canadians. Current initiatives supporting mitigation response: ‘+ Establishing a virtual Canadian Centre for Energy Information delivered by Statistics Canada that was announced in Budget 2019. This Centre will compile energy data from several sources into a single easy-to-use website, The Centre will also support ongoing research by Statistics Canada to identify data gaps that would improve the overall quality of energy information available to Canadians. ‘+ Developing both an engagement strategy and a digital strategy to better understand and meet user/stakeholder needs and improve engagement INDIGENOUS EXPECTATIONS AND ENGAGEMENT > Indigenous Peoples expect that their constitutionally protected rights and traditional territories are recognized and respected, and they are engaged in natural resources development. > There are expectations ‘among Indigenous Peoples around how Canada’s competitiveness is impacted by increased costs from prolonged engagement processes. Investment decisions face delays or reversals, Low public confidence will deter investment in Canagian natural resources development. Delayed deployment of infrastructure and/or technologies could delay Undertake deliberate, structured and regular Indigenous engagement and consultation on regulatory and policy development for all aspects of natural resources development. Current initiatives supporting mitigation response: ‘© Continuing engagement with Indigenous communities on West Coast energy infrastructure development and natural resource development. ‘+ Advancing the work of the Indigenous Advisory and Monitoring Committees for Line 3 and Trans Mountain Expansion pipeline projects to bring they are engaged in na together Indigenous and government natural resources ; representatives to monitor and provide advice development pee (on environmental, safety and socio-economic opportunities for natural L 22 /A0000899_22-NRCan-RNCan_A-2020.00429-p.00222019-20 Corporate Risk Profile s.20(na) resources may be hindered. > Potential for negative economic impacts through lost opportunities for natural resources projects. Inefficient consultation processes may result in economic impacts as a result of opportunity 23 ‘matters related to the projects. Ensuring that that the new CER is built on modern effective governance, more inclusive engagement, greater Indigenous participation, stronger safety and environmental protection, ‘and more timely project decisions that enhance certainty for industry. ‘A0000899_23-NRCan-RNCan_A-2020.00429-p.00232019-20 Corporate Risk Profile .16(2) s.21(nyay) 6. Cybersect Risk Statement: ability to deliver its mandate may be compromised. Risk Category: Operational ‘Accountabilities: Lead: Corporate Management and Services Sector Secondary: All sectors Responsible Committees: | Government of Canada (GoC) Priorities: Business Transformation Committee; Information Management and ‘Technology Committee; Cyber Security Action Pian Project Management Board roy > Global attacks on government operations have increased in sophistication > Cyber attacks could potentially target interests in natural resources, energy and urity Person Estimated Risk Level IF NRCan does not continue to implement measures to reduce the threat or impact of evolving cyber- attacks on our current information systems, NRCan's Impact Probability Inherent risk rating: 16 Linkages: Departmental Results Framework: > Internal Services Mandate Letter Commitments: > NA » Government Services and Operations Coomera cerry investments. 24 ‘A0000899_24-NRCan-RNCan_A-2020.00429-p.00245.162) 2019-20 Corporate Risk Profile s21(tNay > Management of secret | > FS and sensitive information in the department is threatened by limited differentiation of how these materials are handled. 0 Residual Risk (Risk remaining after risk responses have been applied) 25 ‘A0000899_25-NRCan-RNCan_A-2020.00429-p.00265.1602) s.21(14@) 2019-20 Corporate Risk Profile 7. Hazards and Emergency Management Person) Estimated Risk Level Risk Statement: | IF NRCan falls to deliver on its obligations to | mitigate, respond to, and recover from natural and | human-induced emergency events involving critical | infrastructure, there could be significant impacts on | canadian public health and safety, the environment | and the economy. Impact Risk Description: Probability | Operational Departmental Results Framework: ‘Accountabilitie | > Core Responsibility 1 ~ Natural Resource Science and Risk Mitigation Lead: Corporate Management and Services | Mandate Letter Commitments: Sector aaa Secondary: Land and Minerals Sector, Canadian | Government of Canada (GoC) Priorities: Forest Service, Eneray Sector, SPRS-Canada > Healthy Canadians Centre for Mapping and | > Safety and Security Earth Observation Responsible Committee: Security and Emergency Management and Intelligence Committee (SEMIC) coms renreibrrcg Deu er eed > The vulnerability of ° ‘Address needs of communities and critical critical infrastructure infrastructure through pre-emptive and preventative, or and of communities to responsive measures, where possible, using S&T. natural, technical and human hazards has Current initiatives supporting mitigation increased response: ‘© Using S&T to help anticipate and mode! natural hazards, and to develop techniques using satellite data to better understand, map and monitor natural hazards such as landslides, flooding and wildland fire ‘+ Working with the Canadian Interagency Forest Fire 26 A0000899_26-NRCan-RNCan_A-2020.00429-p.00262019-20 Corporate Risk Profile 3.1602) s20(tNay “There has been an ° cs erosion of public trust in Canada’s safety and security regimes to prevent and respond to incidents Centre providing wildland fire information and strategic advice to practitioners on how to operate the Canadian Wildland Fire Information System and providing operational support. ‘+ Responding to federal requests for assistance through Public Safety Canada and the Department Of National Defense, NRCan’s Emergency Geomatics Service (EGS) using satellite SAR imagery to derive near-real time, broad-view flood extent products during major flooding events. Providing emergency responders at a range of levels and jurisdictions with critical information required for the response phase of the emergency management cycle. Increase communications with all stakeholders. Current ini response: ‘+ Providing access to NRCan’s hazard information, products, and services to Canadians, governments, the private sector, and regulatory bodies. ‘= NRCan will continue to work with Public Safety to implement the recommendations highlighted in the Government Operations Centre (GOC) modernization initiative, ‘+ NRCan will take steps to ensure that internal, ‘emergency management measures are aligned to best practices, well documented, and understood across the organization. /es supporting mitigation eae re ed) a ‘A0000899_27-NRCan-RNCan_A-2020.00429-p.002751602) 2019-20 Corporate Risk Profile sane) 8. Enabling Program Delivery Prrsnrnor ry Pes ey Risk Statement: If NRCan cannot address its ageing assets (real property S&T equipment and IT Infrastructure), attract and retain diverse talent, and be nimble in adapting to new and emerging horizontal priorities and issues, the department's ability to effectively deliver its programs may be hindered. Impact Risk Description: NRCan needs to reinvest to maintain departmental assets (real property S&T equipment and IT Infrastructure). In addition, the demographics of an ageing workforce could lead to skills and knowledge gaps in areas of crucial importance to NRCan‘s mandate such as scientific expertise. Probability Finally, NRCan’s business and core operations model may not allow sufficient flexibility to respond to new and cross-cutting ‘emerging priorities while delivering existing programs. Risk Category: Linkages: Operational Departmental Results Framework: > Internal Services Lead: Corporate Management and Services Sector ‘Seconda Responsible Government of Canada (GoC) Priorities: ‘Committees: S&T Board and Directors General S&T Committee, Real Property Advisory Board (RPAB), Security, Emergency Management, and Intelligence Committee (SEMIC), Information Management and Technology Committee (IMTC) , Project and Architecture Review Board (IMT PARB) cos All sectors » Government Services and Operations reer prey ‘ASSET MAINTENANCE AND RENEWAL a > Address ageing infrastructure in the department. pagooe comers Ot Current initiatives supporting mitigation NRCan's real response: property, IT NRCan has developed the 2019-20 departmental IT. 28 A0000899_28-NRCan-RNCan_A-2020.00429-p.00282019-20 Corporate Risk Profile .16(2) s20(tya) Infrastructure and S&T equipment portfolio are ageing, Plan which will allow senior management to prioritize the renewal of ageing IT. ‘+ The implementation of Sector Delivery Agreements will help ensure that senior management is aware of the scope and costs of existing IT systems. ‘+ NRCan is raising the profile of Science and Technology (S&T) in departmental investment planning. ‘+ NRCan is also developing a Science Strategy to guide efficient leveraging of resources and expertise across sectors. ‘+ Completing investments under the Federal Infrastructure Initiative (FII) to address building maintenance deficiencies within the real property portfolio for capital replacement and renewal of NRCan's facilities, ‘+ Work with other federal organizations under the Federal Science and Technology Initiative (FSTII) on construction of a new, shared, state-of-the-art facility in the National Capital Region (TerraCanada) to replace the Booth Street Complex and proposing regional opportunities under FSTII as well. This will ‘also enable a new science vision for Canada that includes making better use of existing facilities and ‘equipment in addition to new complexes. ‘+ Real Property (RP) is working on a portfolio strategy to identify longer-term direction for the departmental RP assets including mid-term solutions for the Booth Street Complex in advance of the FSTII solution. Funding solutions for implementation and maintenance of the portfolio outside of work under FSTIL, will still need to be identified. ‘ATTRACTING AND RETAINING TALENT Many key NRCan positions are highly specialized. ‘The labour market is very competitive. Demographics are changing, e.9., ‘aging workforce. Persistent difficulties with Phoenix and Public Services and Procurement Canada are often headlined in media, Itis more difficult to attract and retain specialized talent with required skillets, intellectual capital or leadership talent. Strategize how to attract and retain talent at the departmental level. Current initiatives supporting response: ‘+ NRCan is strengthening workforce planning capacity to identify key positions and areas of risk, and establish staffing, classification and succession plans. ‘+The department is engaging in recruitment activities such as innovative staffing mechanisms, improve marketing strategies, and student recruitment to proactively target wider talent pools, ‘+ NRCan is improving the candidate experience, starting from outreach and selection, to onboarding ‘and orientation. ‘+ NRCan is continuing to improve workplace culture through healthy workplace initiatives and training, flexible work arrangements and integration of bi igation 29 A0000899_29-NRCan-RNCan_A-2020.00429-p.0029