HSC Business Services Organisation Board. Risk & Assurance Profile: Board Assurance Framework

Transcription

1 Paper BSO 53/ rd September 2010 HSC Business Services Organisation Board Risk & Assurance Profile: Board Assurance Framework Purpose of this report The purpose of this paper is to present the Draft Corporate Risk & Assurance Profile for the BSO. The Corporate Risk Register has been combined with the Board Assurance Framework to develop a Risk & Assurance Profile for the BSO. This will reduce duplication but more importantly will provide high level risk identification in regard to corporate objectives, highlighting gaps in control and/or gaps in assurance processes and provide details of necessary action. 2. Background The BSO is required to have a framework for assurance that provides a simple but comprehensive method for effectively managing the risks to meeting it objectives. The framework should also provide a structure for acquiring and examining the evidence to support the Statement on Internal Control. 3. Recommendation It is recommended that the Board Consider, comment and agree the Risk & Assurance Profile for

2 Introduction The Board need to be confident that the systems, policies and people they have put in place are operating in a way that is effective, is focused on key risks and is driving the delivery of objectives. The Corporate Risk & Assurance Profile provides high level risk identification in regard to corporate objectives, highlighting gaps in control and/or gaps in assurance processes and the details of necessary action. Thereby enabling Board members to debate and map the connections between BSO Objectives, risk and the range and effectiveness of existing controls and assurance reporting. This Corporate Risk & Assurance Profile for 2010/11 sets out the sources of assurance that is available to provide this confidence. 2

3 Corporate Objective No 1 To Demonstrate competitiveness through the delivery of High Quality, Productive and Value for Money Services. 1. Levels of savings for HSC wide are so great that services to customers are negatively affected and/or we fail to Breakeven (s) CX / DoF 2. Inability to prove quality, productivity and VFM and show that we are competitive (s) DoCCP Current Risk Score High Budgetary Process Breakeven Budget with specified savings programme High Processes to measure Quality Standards. SLA S KPI s Framework /Scorecard Monthly report to Customers Budgetary Monitoring (I) SMT Accountability to CX (I) External Audit (E) Budgetary Control Process (I) Accredited Bodies ISO / Lexcel (E) Monthly reports to Customers (I) Scorecard monitoring (i) CSR Period Absence of formally agreed SLA s Demonstrating Competitiveness via Accredited Awards- scope not across whole of BSO and Audit of Performance management No External Benchmarks Correspond with Dept and explore better understanding of BSO Savings SMT to develop Savings Action Plan Develop SLA s for all Customers Create Reform & Modernisation Board Engagement & Consultation Implementation of Savings Plan Explore where ISO 9000 could be applied Performance Management Process to be part of Internal Audit programme for 2010/11 Identify suitable Benchmarks / Benchmark Partners July rd Aug 10 Dec Mar 11 April 11 CX & D o F SMT D o CCP CX/ CX / Board 2012 Relevant Directors July 10 Internal Audit Nov 10 / D o CCP Benchmark Legal Services Mar 11 D o LS/ D o CCP 3

4 Corporate Objective No 1 To Demonstrate competitiveness through the delivery of High Quality, Productive and Value for Money Services 3. Staff Resources High level of new staff in certain services (FPS & CFPS) could have a short term impact on the quality of service delivery. Dir of Opps Current Risk Score High Training & Development Plan for roll out of services FPS and CFPS. SLA s KPI s / Monthly Report Reports to Dir of OPPS Report to Dir (I) Monthly Reports to Customers (I) Quarterly Scorecard (I) Detailed Change Management Plan Reporting to SMT / Board Engage with FPS & CF&PS AD s to report current work programmes into consolidated plan Develop Reporting Process D o OPPS AD FPS AD CF&PS D o CCP 4

5 Corporate Objective No 2 To anticipate and influence policy and standards and comply with legislation. Risk Current Risk Score Description 4. BSO will face the risk of legal challenge on Major High Value Regional Contracts Dir of Opps High Process Qualified Personnel COPE Accreditation / ISO 9000 (E) Litigation Expertise SMT approval for DLS to appoint Litigation Expertise Litigation Expert to review PaLs work processes to ensure robustness Mar 11 D o LS/ AD PaLs Litigation Expert AD PaLs 5. BSO is not involved enough in the policy and standards (PaLs & FPS) setting process and is therefore unable to influence. Dir of Opps Medium Knowledge of the extent of representation on influential groups Develop Template and issue to Directors for completion Register of Representation to be created Oct 10 Dec 10 D o CCP/ AD CCP/ AD CCP/ 6. Fail to implement robust information governance process Dir of HRCS Medium Policy & Procedures Information Governance / Records Mgt CA Standard Audit Control CA Standard Assessment (I)&(E) Mid Year Assurance Statement / SIC (I) GAC Report (I) Board Reporting Consolidate work of Information Governance Group into Project Plan and report to SMT/Board Develop Reporting Process for SMT/Board Oct 10 Nov 10 Dir HRCS Admin Mgr Dir HRCS Admin Mgr 5

6 Corporate Objective No 3 To invest in appropriate systems and technology to modernise services for the benefits of customers and staff Current Risk Score Revision Risk 7 below was previously described as Lack of financial resources to enable investment in technology 7. Failure to harness opportunity of implementing new systems for business growth DoF Low Capital Defined Limit BSO Capital Bidding Process Board Delegated SMT Approval Process (I) Systems fail to deliver to their required specification Dir of Opps Medium Primary Contracts Policies & Procedures Internal Audit (E) External Audit (E) Absence of Systems Approach to Change Control / Absence of Systems Approach to Design Implementation of INFRA in relevant areas Implement Documented Process in line with ISO process Dec10 Dec 10 AD FPS AD FPS 6

7 Corporate Objective No 4 In line with DHSSPS Policy, procure new systems and deliver cost effective shared services which are funded by customers and deliver benefits. 9. Lack of Resources to deliver the Original Outline Business Case (OBC) Outcomes for Finance, HR and Systems Replacement. 10. OBC for Shared Services can not deliver specified outcomes. Current Risk Score High High DFP Approved OBC CPD process in place with CPD Advisors Market Tested Report on Valuation Monthly Reporting Programme Risk Register and Report. Project Structure in place Feasibility Study (2007) on Shared Services Project Structure Dept Review Strategic Outline Case (2009/10) DFP/Dept Assurance Project Board (I) Reporting (I) Project Board (I) Reporting (I) DFP/Dept OCB Reviewed (E) SS Design Group (E) SS Quality Assurance Group (E) Board Reporting Understanding of Flow of Monies for managing project and capital procurement Weakness in the engagement process with Senior HSC Officers Develop mechanism for Board Reporting Programme Director to meet with Capital Branch to ensure that reserved monies is released as required. Engagement with Senior HSC Officers re design of Shared Services Develop Blue Print for Shared Services Develop Key Milestone Plan Expertise to develop competitive dialogue 6 th Aug 10 SS Project Mgr SS Project Mgr 7

8 Corporate Objective No 4 In line with DHSSPS Policy, procure new systems and deliver cost effective shared services which are funded by customers and deliver benefits. 11. Inability to procure replacement systems for Finance, HR and in line with agreed timeframe. Current Risk Score High DFP Approved OBC CPD process in place with CPD Advisors Market Tested Report on Valuation Monthly Reporting Programme Risk Register and Report. Project Structure in place Project Board (I) Reporting (I) DFP/Dept OCB Reviewed (E) SS Design Group (E) SS Quality Assurance Group (E) DLA Piper (E) OCG Report (E) Clear & Defined procurement Strategy & Plan Redefine Strategy & Plan Engagement with CPD Invitation to participate in dialogue Develop high level blueprint for Shared Services to link into 12. No funds are made available for FPS Business Systems Replacement High Strategic Outline Case Bid to Dept Project Structures Project Board (I) Reporting (I) DFP/Dept OCB Reviewed (E) SS Design Group (E) SS Quality Assurance Group (E) DLA Piper (E) OCG Report (E) Connectivity to Programme understanding how FPS fits with wider programme Discuss with relevant parties future planning of FPS project. Develop & get approval for Statement of Capability. FPAS Project Mgr 8

9 Corporate Objective No 4 In line with DHSSPS Policy, procure new systems and deliver cost effective shared services which are funded by customers and deliver benefits. 13. Customers not engaged in change process. Current Risk Score High Communication / Engagement Strategy Project Board (I) Reporting (I) Little evidence of live and widespread process Develop scope of Customer Engagement Action Plan. Coordinate network of BSTP Leads Oct 10 SS Project Mgr SS Project Mgr 14. Failure to get decision on location of Shared Services High Draft SOC Consultation Process Project Board (I) Reporting (I) Consultative Document Develop Consultative Document on Shared Services OCT 10 SS Project Mgr 9

10 Corporate Objective No 5 To achieve, through sound planning and SLA s, an agreed balance between cost, quality and satisfaction to meet customer demands and ensure financial stability. 15. Bowel Screening does not deliver to the agreed expectations. Current Risk Score High Project Plan Project Board Meetings Service Review Meetings (E) PHA Quarc Review (E) Reporting to SMT /Board Report to be developed & presented to SMT with Exception Reporting to Board Oct 10 Dir of Opps Dir of Opps Activity Reports against 2 Year Call Schedule for participating Trusts 10

11 Corporate Objective No 6 To have an appropriately skilled, healthy, productive and engaged workforce. Current Risk Score Risk Deletion - Risk No 16 below Fail to implement Staff Appraisal process 16. Fail to HR Mthly/Quarterly implement Staff Report (I) Appraisal process. Dir of HRCS Low Corporate Appraisal Process Training Indicators in Corporate & Directorate Scorecard BSO current skill mix does not meet future business needs. Dir of HRCS Medium Job Description/ Personal Specification Staff Survey Outcome of Staff Survey (E) Workforce Strategy Develop Workforce Strategy Oct 10 AD HRWD 18. Demands placed on services within the BSO, therefore impact on staff, cannot be met by current capacity, systems and structures High SLA s SLA s Monitoring Absenteeism Staff Survey Staff Turnover HR Report (I) Legal Services to be reviewed. Programme of work being developed D o LS D o F Dir of Legal Services Dir of Finance 11

12 Corporate Objective No 6 To have an appropriately skilled, healthy, productive and engaged workforce. New Risk No 19 Current Risk Score 19. Staff not fully engaged in Corporate Direction which could have a detrimental effect on Service Delivery, Performance and Change Medium Corporate Appraisal Process Management Structures SDP Staff Survey (E) Absenteeism Reports (I) Promotion of Corporate Direction Promotion of Corporate Direction via Staff Engagement Sessions Develop Action Plan from outcome of BSO Survey Nov Mar 11 Nov 11 CX Dir o HRCS CX 12

13 The Risk Profile as currently scored is as follows BSO Corporate Risk Score Profile Total Impact Catastrophic 5 Major 4 Moderate 3 Minor 2 Insignificant ,10,11 5,6,8, ,2,3,12, 13,14, Rare Unlikely Possible Likely 7 Almost Certain SCORE = LIKELIHOOD X TOTAL IMPACT LIKELIHOOD *Risk Classification / Numbers LOW MEDIUM HIGH EXTREME 2 Risks 5 Risks 12 Risks 0 * in accordance with AS/NZS 4360:2004 guidance 13