An underlying principle of the risk management program is that each ministry is responsible for developing and implementing its own risk management plan. This includes risk management-related matters. Under Section 6 of the FAA, Ministers are responsible for the administration of their ministry's financial affairs under the general direction of the Minister of Finance and Corporate Relations and the Treasury Board. As such, every ministry, under the direction and management of the Executive Financial Officer, is responsible for developing and implementing a comprehensive risk management plan for its programs and operations. The policy of the government is to self-insure its losses wherever practicable.
Insurance is purchased only in exceptional cases.
The Risk Management Branch purchases all insurance coverage on behalf of ministries, and recovers its costs from these ministries. In addition to the responsibilities of the Risk Management Branch, other agencies and organizations may have, directly or indirectly, corporate risk management assignments in their respective areas of responsibility. If necessary, ministries should contact Risk Management Branch to seek advice on which may be the appropriate organization to provide assistance. General Risk Management is a systematic process of identifying and treating risks of loss to maximize the net benefit and minimize the cost to government. Incidents, claims and losses are a fact of life.