Calgary Council Receives Risk Appetite and Tolerance Update

Summary#

Calgary City Council approved receiving the Risk Appetite and Tolerance Update for information and the Corporate Record. This was not approval of a new program or set of rules: City staff say their existing, multi-year work will continue, with clearer risk measures planned for 2026.

  • The Audit Committee recommended that Council receive the report and presentation; Council adopted that recommendation on its consent agenda, 15 to 0.
  • City staff say the City has used a five-level scale for risk discussions since 2020. They are working in phases to develop clearer ranges and measures for Principal Corporate Risks and link risk levels to actions and escalation.
  • The report describes risk appetite as the level of risk the City is willing to accept to achieve results, and risk tolerance as the amount it can assume without material impact on results.

What it means for you#

  • Calgarians: The decision does not directly change City services, eligibility for services, or residents’ rights. City staff say the work is intended to help the City monitor risks that may affect services.
  • City Council and staff: The report says both share responsibility for setting and using clear risk limits. The Council motion itself only received the update; it did not set new limits or require a new public process.

Money#

City staff report no anticipated financial impact.

  • The report gives no cost estimate or staffing details for the continuing work.

What is unclear#

  • The supplied material does not give the proposed ranges or measures for Principal Corporate Risks, or list which risks they cover.
  • It does not set out a timeline for wider organizational integration, or explain how the planned measures will affect specific decisions and accountability.
  • No publicly available information is provided about how the City will assess whether the work improves consistency.

Case for#

  • City staff say clearer risk limits could help link risk information to decisions, including when to maintain course, monitor closely, or reduce risk.
  • Staff report that risk concepts are considered but not consistently formalized or documented. A shared approach could make risk discussions more consistent across the organization.
  • Staff say clearer measures could support earlier responses to risks affecting services, climate and the environment, or economic pressures.

Case against#

  • The report itself identifies a concern with the current approach: risk limits are not consistently formalized or documented. Until the planned measures are clear, it is uncertain how much they will change decisions.
  • The supplied material does not explain what specific actions or accountability requirements will follow from the measures, or how the City will judge their results.
  • City staff report no anticipated financial impact, but provide no cost estimate or staffing details for the ongoing work.

Votes

Calgary City Council, item 7.20 (Risk Appetite and Tolerance Update, AC2026-0365): That the Consent Agenda be adopted as follows: 7.20 Risk Appetite and Tolerance Update, AC2026-0365

For (100%)

Audit Committee, item 7.2 (Risk Appetite and Tolerance Update, AC2026-0365): That with respect to Report AC2026-0365, the following be approved: That the Audit Committee recommend that Council receive this report and presentation for information and the Corporate Record.

For (100%)