Enterprise Risk Management

Enterprise Risk Management (ERM), through increased transparency and leadership collaboration, 

has the ability to reduce costs and better enable the Department to more effectively manage its 

risks and deliver its mission. Office of Management and Budget (OMB) Circular No. A-123, 

Management’s Responsibility for Enterprise Risk Management and Internal Control[1], requires 

Federal Agencies to implement an Enterprise Risk Management framework. In FY 2017, DOL 

developed its ERM Framework to initiate the establishment and integration of ERM elements across 

the Department to meet the requirements set forth by OMB. The EMRC allows DOL to mature its 

ERM process and establishes an updated framework for the Department’s approach for 2021 and 

beyond.

The governance structure is as follows: The Enterprise Risk Management Council (ERMC) -The 

Deputy Secretary, Chief Financial Officer, and Assistant Secretary for Administration and 

Management co-chair the ERMC.

The ERMC serves as the DOL’s enterprise oversight body for the development of coordinated 

Department-wide positions on risk, risk management, risk mitigation, and execution in 

conformance with any guidance on risk governance issued by the Congress or the Office of 

Management and Budget. The ERMC is responsible for implementing an ERM framework and 

strategy for the Department and coordinates an annual risk assessment to provide an integrated, 

enterprise-wide view of risk, risk tolerances and risk mitigation efforts. Each component agency of 

DOL has identified an individual to be a member of the ERMC; in most cases this individual is a 

career member of the Senior Executive Service. Members of the ERMC work closely with Senior 

DOL officials to recommend and promote best practices in risk management and ensure that all 

such analyses are thorough, accurate, and authoritative. ERMC designees provide executive-level 

management, leadership, direction and oversight to DOL by identifying and advising on mitigation 

efforts regarding the most significant risks facing DOL. Within their respective agencies, ERMC 

members coordinate with designated personnel to act as the agency’s main point of contact for

communication to facilitate risk management activities, policies, practices and standards, and 

disseminate relevant information to agency and Departmental management and staff. These 

individuals also coordinate the implementation of the Department’s ERM program within their 

respective agencies and are active participant in cross-agency initiatives and project-focused 

working groups. This includes coordination of risk identification and assessment from all major 

programs and divisions within their agency. 

To date, ERM has played a critical role, and is included in official guidance on Departmental 

processes including, but not limited to; Budget Formulation, Strategic Planning, Annual Operating 

Plan, Performance Management. The Department will continue to integrate ERM practices 

throughout its agencies and programs to build a risk aware culture enabling sound strategic 

decision making. 

The Office of the Inspector General (OIG) Office of Audit has included Enterprise Risk Management 

as part of their FY 2021 Audit Workplan.

 [1] https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/memoranda/2016/m-16-17.pdf