Ordinance on Risk Management - Subject Matter

1. This regulation establishes the framework conditions for effective and proactive risk management in the administration of the Canton of Basel-Landschaft.

2. It serves as the binding foundation for the design, implementation, monitoring (controlling), and improvement of risk management.

3. It governs the terminology, objectives and measures, scope, principles, and organization of risk management.

4. Further provisions for the implementation and operation of risk management in accordance with this regulation are set out in guidelines, which are prepared and updated as necessary by the Department of Finance and Church Affairs.

1. "Risks" are events or developments that, upon their occurrence, may influence the achievement of the strategic, financial, or operational objectives of the Canton of Basel-Landschaft.

2. "Risk management" is the systematic identification, analysis, evaluation, monitoring, and handling of risks.

1. The risk management is intended to achieve the following objectives

a. The purpose of risk management is to minimize the risk of wrongful decisions, personal and property damage, asset losses, and negative deviations from strategic, operational, and financial objectives.

b. Risk management should allow for the early identification and assessment of both threat and opportunity aspects of risks, in order to make appropriate decisions and implement suitable measures based on these assessments.

c. Risk management should ensure that the government council is promptly informed about significant risks, adverse developments, and deviations from objectives, enabling them to undertake appropriate risk mitigation measures.

2. The objectives outlined in paragraph 1 should be achieved through

a. the timely reporting of risks to the respective supervising authority;

b. the timely planning and implementation of necessary measures by the responsible level, including the preparation of checklists and action plans by this level in case of an event;

c. adequate reporting;

d. clear assignment of responsibilities;

e. promoting employees' risk awareness through information and the creation of transparency.

1. Risk management is a management tool and constitutes an important part of management responsibility at all management levels.

2. The identification, analysis, evaluation, management, and monitoring of risks, as well as the corresponding reporting, follow a unified methodology that is oriented towards common standards.

3. Risks must be reported promptly to the respective supervisory authority.

4. Measures for risk avoidance or mitigation are to be decided and implemented appropriately by the responsible management level.

5. Risk management must be periodically reviewed and further developed.

6. The processes of risk management should be integrated into existing processes and systems as far as possible and reasonable.

7. To enhance efficiency and effectiveness, risk management utilizes interfaces to cross-directorate processes.

1. The Government Council holds the ultimate responsibility for the risks of the cantonal administration and the cantonal authorities.

2. It establishes the framework conditions for risk management and supervises its implementation.

1. The Planning and Strategy Committee reviews the major risks reported by the directorates for completeness and plausibility.

2. It ensures the interface with strategic planning as well as the assessment and handling of cross-directorate risks.

1. Each directorate implements the risk management according to the guidelines.

2. It appoints a responsible person for risk management.

3. The directorates inform the government council annually about the risks in their areas with a report, which is coordinated by the Financial and Church Directorate and prepared for the government council.

4. In an extraordinary risk situation, the directorate informs the government council immediately and directly.

5. It ensures that risk management is perceived as part of leadership responsibility at the level of the service units.

6. It ensures the necessary interfaces of risk management with the processes specific to the directorate.

1. The individuals responsible for risk management ensure the implementation and operation of risk management according to the guidelines within the respective directorate.

2. They report annually to the responsible directorate about the risks in their area.

3. In an extraordinary risk situation, the individuals responsible for risk management promptly and directly inform the responsible directorate.

1. The department and office management are responsible for the internal implementation of risk management and its operation in accordance with the directives of the directorate and the guidelines.

2. The office management informs the risk management officers of the directorate annually via the department management about the risks in their area.

3. In an extraordinary risk situation, the directorate shall be informed immediately and directly by the department and office management.

1. The Financial and Church Directorate coordinates the annual risk reporting to the Executive Council.

2. The annual risk reporting is submitted by the Financial and Church Directorate to the Planning and Strategy Committee for the attention of the Executive Council.

3. The Financial and Church Directorate supports the uniform implementation and continuous development and improvement of risk management as well as the necessary interfaces to cross-directorate processes.

4. It is responsible, in collaboration with the risk management officers of the directorates, for drafting and updating guidelines for the implementation and operation of risk management.

5. It is responsible for quality assurance and the necessary knowledge transfer within the framework of risk management.

6. It ensures that the risk management officers possess the required expertise and necessary competence.

1. This Regulation shall enter into force on February 1, 2014.