Key Risks

The following are the key risks and response strategies associated with achieving CanNor's results on the Core Responsibility of Economic Development in the Territories:

1. Limited Economic Diversification: A high degree of reliance on the public service and resource development sector has resulting in limited diversification and an increased vulnerability to the cyclical changes in commodity prices.
   • CanNor will make investments to leverage other regional economic advantages (e.g. tourism, fisheries, arts and culture) in order to help mitigate the cyclical nature of the resource sector and expand the private sector. In addition, CanNor will be implementing a Pan-Territorial Growth Strategy to advance inclusive economic growth based on the unique strengths and opportunities of the region.
2. Infrastructure Deficit: Higher capital and operating costs compared to southern Canada resulting from a core infrastructure deficit, including connectivity, constrain opportunities for northern economic development and impact the effectiveness of CanNor's programming.
   • CanNor will continue working with partners to inform and advocate with respect to federal infrastructure priorities. The Agency will make investments in a range of economic infrastructure projects in order to increase community readiness.
3. Labour Market: Competition within the limited labour pool in the North carries risks for recruitment and retention, which impacts the ability of businesses to grow and diversify.
   • CanNor is making investments that support skills development in the North, in order to help strengthen and increase the labour force availability for the private and public sectors.