Risks—Canada’s National Shipbuilding Strategy: 2018 annual report

Navigation for Canada’s National Shipbuilding Strategy: 2018 annual report

The Government of Canada has developed a formal and robust risk management plan for the National Shipbuilding Strategy. The plan is informed by international best practices, and helps to predict, identify and manage the key risks facing the strategy. Risks are managed at the project, program (combat, non-combat, and small vessels and sustainment) and over-arching strategy levels. Risks are also considered by the appropriate governance committees and are escalated as necessary from the working level up to senior executives and the shipyards.

In addition to the challenges referenced earlier in the report, the strategy faces the following key risks:

Timely analysis and decision making

The National Shipbuilding Strategy is a large and complex endeavour involving multiple projects, shipyards, departments and agencies. To prevent costly delays or impede achievement of greater efficiencies, it is important that information makes its way to decision makers in a timely manner. To mitigate this, a robust senior-level governance structure, including the 2 main shipyards, is in place. These committees meet monthly to ensure the timely advancement of the strategy.

Human resources capacity

Ensuring sufficient human resources capacity exists to sustain Canada’s industrial base is a risk common to all sectors. For the marine sector, and more specifically shipbuilding, there is a risk of insufficient human resources capacity needed to manage and execute complex, specialized shipbuilding projects. This risk includes project management and cost-estimating capacity within government and experienced, skilled resources, such as tradespeople and specialists at the shipyards. This risk is being mitigated by hiring more procurement officers, training government analysts on estimating cost, continuing to support training and apprenticeship programs, seeking out innovative recruitment approaches, and ensuring succession planning is in place.

Communications

The National Shipbuilding Strategy is an ever-evolving portfolio of work. While it can sometimes be difficult to clearly communicate aspects of the strategy to both internal and external audiences, it is nevertheless vital to its success.

To mitigate the risk of ineffective internal communications, the Government of Canada has co-located project teams from implicated departments and implemented ongoing and robust governance that includes representation from the 2 main shipyards. This helps ensure ongoing, consistent communications with government departments and key strategic partners.

With respect to external communications, the Government of Canada keeps the public informed by publishing annual reports and providing information about the strategy, including status of projects, on the Public Services and Procurement Canada website. Announcements and media technical briefings are held when major project milestones are achieved, and the government continues to seek opportunities to provide Canadians with timely information about the strategy.

Navigation for Canada’s National Shipbuilding Strategy: 2018 annual report

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