Landmarks College Risk Register

Transcription

1 CONTENTS 1. The Risk Management Process 2. Strategic Risks 3. Financial Risks 4. Operational Risks 5. Personnel Risks 6. Summary of Risk Page 1 of 12

2 RISK MANAGEMENT PROCEDURE 1. Purpose This procedure outlines the process by which is established, maintained and reviewed. 2. Definitions For the purpose of this procedure: RISK is taken to mean the chance that an event will occur which may impact on Landmarks objectives. RISK ASSESSMENT means the process used to determine risk management priorities. RISK MANAGEMENT is the implementation of management strategies to identify, manage and monitor risks. RISK REGISTER is the register/document which records details of all the risks identified, their grading/score in terms of impact and likelihood, monitoring processes and further action to be taken to enhance the risk management. IMPACT is a score given to the potential consequences the risk would have on Landmarks College LIKELIHOOD is the score given to the probability or frequency of the risk occurring. 3. Responsibilities The Board of Trustees is responsible for overseeing risk management across the organisation. The Principal/Chief Executive is responsible for ensuring that a Risk Register is established, implemented and maintained. Further the Principal will review existing risks, identifying emerging areas of risk, review current controls and monitoring processes and identify further action to be taken to further reduce the potential impact and/or likelihood. Page 2 of 12

3 4. Developing the Risk Register The Risk Register aims to identify the strategic and operational risks to the charity from the perspective of all stakeholders both internal and external. The Risk Register has been divided into four key areas: Strategic Financial Operational Personnel Each area is then broken down into more specific risks which are individually assessed. For each risk the Risk Register records: A description of the potential consequences to Landmarks College if the risk was realised. An impact and likelihood score of between 1 and 5. Impact Scores Likelihood Scores 1. Insignificant Almost impossible. 2. Minor Very unlikely 3. Significant Unlikely 4. Major Likely 5. Catastrophic Very likely The total score recorded for each area reflects the potential impact and likelihood if no controls were in place. The current controls in place. The impact, likelihood and net scores which Landmarks College considers to be the present risk with the existing controls in place. This also identifies strategic and organisational priorities. The monitoring processes in place. Page 3 of 12

4 Identified Senior Managers who have the lead operational management responsibilities to ensure that the risk management processes are adequately controlled and monitored. Further Action provides information on planned activities to be taken to further reduce the potential impact and/or likelihood of the risk. These identified actions and resource requirements (if any) are reflected within the organisation s Strategic and Development Plan and Annual Budgets. For each category and specific area of risk the net impact and likelihood scores are plotted onto a matrix. 5. Reviewing the Risk Register The Risk Register is reviewed as part of the Strategic Planning and reviewing processes and is reported to the Board through the Management Committee Minutes, Board Papers and Board Presentations. This draft Risk Register is formally presented to the Board of Trustees annually each December for approval. This revised document clearly identifies in red new areas of risk controls or monitoring processes. It also highlights new actions to be taken to further minimise the likelihood or impact of risks. Page 4 of 12

5 IMPACT SCORE LIKELIHOOD TOTAL SCORE IMPACT SCORE LIKELIHOOD NET SCORE RESPONSIBILITY STRATEGIC CODE AREA OF RISK POTENTIAL CONSEQUENCES CURRENT CONTROLS MONITORING PROCESS FURTHER ACTION S1 S2 Uncertain political/gover nment agenda Changing legislation, government policy, and impact on local commission strategies and funding. Change or loss of funding streams Local Authorities. Unable to longer term plan General Election, government change and change to funding Reduction in service students. Services no longer financially viable. Inability to meet reserves policy. Staff redundancies. Loss of reputation. Increasing complex service users/students. Shift in funding from statutory authorities to Keeping well informed of changing national agendas. Financial strength/ Reserves Diversification activities to generate new income stream. Achieving best value through LA contract negotiation. Monitor the election and manifesto commitments Link with the local authority and establish if any funding risks are known Keeping up to date on new and emerging agendas. Well represented at relevant forums relating to strategic/government changes Improving relationships with funding authorities. Responding to consultation documents. Financial stability. Staff training. Page 5 of Trustees and Principal Meetings. Regular Finance Meeting with monthly reports. Monitoring of government activities through available public information. Regular review of NATSPEC information Participate in lobbying with NATSPEC and other ISCs Monitoring changes and trends through professional publications and government papers. Representation at courses, conferences, Local Authority, Providers Forums, Local Implementation Networks. Management Committee. Reviewing competitors activities. External audits and inspections P Fund raising/gift aid Trading companies generate income. Increase training activity. Increase representation at national events/forums. Organisational efficiency savings. Staff contract review/time limited contracts. P Continue to diversify the charity s activities. Staff training. Enhanced marketing and publicity/raisings profile. Updating policies and procedures to reflect changes. Improved marketing to Personal Budget holders. New day provision in new local authority area. Increase in internship supported employment models. Develop diversification plans

6 S3 Increasing competition from other providers. Personal Budgets holders Merger of the EFA and SFA to the ESFA in 2018 will present funding changes Loss of contracts Reduction in students Loss of income. Financial viability of college Loss of reputation. Staff redundancies Competitive pricing and emphasising uniqueness. Raising college profile Responding to government agenda s. Increasingly diversifying business activities. Improved relationship with funding authorities. Good outcomes for students. Monitoring competitor s activities. Achieving good/excellent inspection outcomes Partnership working/networking Detailed 3 year Strategic Plan. Attending local and regional events/forum. Reviewing financial performance against competitors. P Further promoting the college and its uniqueness. Responding to Local Authorities Personalisation Agenda and commissioning strategies. Maintain high profile with LA s. Competitive and transparent pricing policy. Improved transition planning. Increase variety in curriculum. Develop internship model further Investigate Free School provision with Rotherham Council Investigate feasibility of entering into Partnership / Merger opportunities S4 Breach of Health and Safety Legislation. Loss of reputation Criminal prosecution resulting in fines. Custodial sentence. Restrictions imposed by regulatory bodies. Closure of college services. Illness, injury or death. Increased costs. Reduced income Trustee s Professional Indemnity Insurance. Adequate insurance cover. Qualified Health and Safety Advisor, ISOH Registered. Health and Safety Committee. Staff training relevant to roles and responsibilities. Detailed comprehensive Health and Safety Policy and procedures. External audits/inspections. Internal routine in-house Subscriptions to professional publications. Membership of Health and Safety groups and forums. Health and Safety Committee. Internal audits and inspections. P formal site inspections by the Health and Safety Advisor. Risk Assessment training. Improved performance measurement of staff with defined H & S responsibilities. Independent audits and inspections Formal Board reporting through meetings. Page 6 of 12

7 S5 Developing new business activities. No guaranteed return on investment. Lack of knowledge and skills with existing staff. Further changes to Government Policy. Limited demand. Impact on existing services. Not keeping up to date with competitors activities. audits and inspections processes.????accreditation. Achieving H&S training targets and established rolling programme of r training Business Plans/forecast Strategic Plan. Analysis of Local Authority needs. Investment Strategy. Keeping up to date on commissioning plans/strategies. Risk assessments and management. Identifying and responding to actual demand Board of Trustees Principal. Reviewing commissioning strategies for individual Local Authorities and LSC. Monthly management accounts and cash flow forecasts. Student reviews Surveys P Feasibility studies for college Fundraising/grant applications Explore trading opportunities and further develop external links. Planned transition opportunities Page 7 of 12

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9 IMPACT SCORE LIKELIHOOD TOTAL SCORE IMPACT SCORE LIKELIHOOD NET SCORE RESPONSIBILITY FINANCIAL CODE AREA OF RISK POTENTIAL CONSEQUENCES CURRENT CONTROLS MONITORING PROCESS FURTHER ACTION F1 F2 Global recession/ and government spending cutbacks Expenditure exceeds income. Loss of monies. Restricted borrowing. Reduced asset portfolio. Reduced or no fee increases from funding Authorities. Reduction in choice of suppliers/contrac tors. Reduced resources Insufficient funds Staff redundancies Reduction in reserves/ cash flow Loss of reputation Unexpected or abnormal expenditure costs Detailed monthly financial reviews. Budget and cash flow management. Good Asset management. Outsourced services reviewed annually Monthly management accounts. Detailed monthly accounts reviewed by the Principal and reported to the Board of Trustees. Internal financial controls. Achieving value for money through contract negotiations. Effective budget and cash flow management Monthly cost analysis of major expenditure. Keeping up to date on current financial affairs. Capital expenditure forecast Monitoring performance against financial KPI s quarterly. Cash flow forecasting weekly and monthly. Variance analysis of all major costs Monthly College Finance Meetings P Fundraising/grant applications to financially support strategic developments. Efficiency saving reviews New business and charitable income Credit control policy Consider purchasing a farm v s renting in 2 years time P Improved monthly reporting. Review Salaries / Pay rates. Generate new sources of income through trading, fund raising and new business activities. Fee reviews. Target efficiency savings to maintain quality. Page 9 of 12

10 F3 Retaining existing contracts or not being awarded new contracts. No expansion in activities/reducti on in services. Financial viability of existing services. Loss of existing and/or future income. Loss of reputation Delivering against contractual requirements. OFSTED/LA inspections. Improved marketing, publicity and networking. Staff training College self assessment procedures. Keeping up to date with changing government policies and commissioning and procurement practices. Review of competitors activities P Becoming preferred providers in a range of Local Authority areas. Develop services funded through personal budgets. Ongoing fee reviews Developing services in response to Personal Budget Holder s need Page 10 of 12

11 IMPACT SCORE LIKELIHOOD TOTAL SCORE IMPACT SCORE LIKELIHOOD NET SCORE RESPONSIBILITY OPERATIONAL CODE AREA OF RISK POTENTIAL CONSEQUENCES CURRENT CONTROLS MONITORING PROCESS FURTHER ACTION O1 Severe injury or death resulting from: Behavio ur incident Suicide Loss of reputation Police investigation Reduced referrals Litigation Staff turnover Behaviour training, guidelines, risk assessments, management plans. Health assessments, referral process, clinical reviews, reporting protocols, Staff training Incident reporting process Intensive staffing P Enhanced assessment documentation Principal training in dealing with the media O2 a b Properties Fit for purpose: a. Colle ge b. farm college closed temporarily or permanently. Loss of income. Loss of reputation Well resourced maintenance. Good internal reporting. Annual self assessment and regular internal inspections in the College Robust budget setting and reporting procedures Compliance with Insurance requirements Health and Safety monitoring and reporting procedures. Self assessment. Internal inspections and audits. Independent annual inspections by insurers. OFSTED P Annual internal inspection. access reports updated for all sites and revised reports produced on reasonable adjustments. Sustainability strategy Improved energy efficiency Page 11 of 12

12 O3 Loss of Technology and communicati ons. Loss of data. Loss of network communications. Loss of business continuity Daily backup of data, stored off site. Security systems. Onsite technical support. Internet and social network policies. Replacement cycle and and upgrades Daily notification of backup. Internal fault reporting. P Enhancing security. Staff/training/handbook. Planned programme of upgrades Databridge O4 Critical incidents/em ergencies e.g. flood, severe weather, structural hazards, terrorism, etc. Closure of services, temporary or permanent. Financial loss. Disruption to services. Risks to staff and service users. Negative media reports Health and Safety Policies, Procedures and staff training. 24 hour maintenance support. Annual service contracts. Planned and budgeted maintenance programme Internal monitoring procedures by competent staff. Internal and external Health and Safety audits. Annual internal buildings audits. Local Authority Procurement Team monitoring. OFSTED notifications P Staff training. Ongoing review and updating of policies and procedures and plans. External Health and Safety Audits. Critical Incident Plans on different sites. Page 12 of 12