Risk Management Performance & Audit Panel 24 January 2006 George Hook, Interim Risk Coordination Manager.

Risk Management

Performance & Audit Panel24 January 2006George Hook, Interim Risk Coordination Manager

What do we mean by ‘risk’?

‘Risk arises as much from failing to capture business opportunities when pursuing strategic and operational objectives as it does from a threat that something bad will happen’

• Traditional view of risk was negative

• Risk = Uncertainty

What is Risk Management?

• We all manage risk intuitively keeping uncertainty within acceptable levels

• Corporate need for that to be a visible, evidenced process

• Should be part of the ‘joined-up’ governance framework

Towards a balanced view of risk

Negative

Traditional view

All about threats

Risk averse

Positive

Developing view

About opportunities

Risk enabling

Why is risk management important to Ealing?

• Achievement of objectives – on time and budget

• Sound management practice• Identify opportunities• CPA

The Risk Model

• Strategic (‘corporate’) risks

• Operational (‘service’) risks

Risk Management ProcessRisk Identification

What could happen?How could it happen?

Risk Assessment

Likelihood? Impact?

Risk Mitigation & Management

Accept? Avoid?Reduce? Transfer?

Risk Profiling

Prioritisation

Risk Monitoring & Review

Ongoing process

Reporting

QuarterlyAnnually

Risk Registers

• Used to document the risk management process

• Strategic Risk register

• Operational Risk register

Risk Register layout

• Description of the risk• Category (strategic/operational)• Risk owner• Likelihood/Impact/overall gross risk score• Likelihood/Impact/overall residual risk score • Target risk score• Risk action plan – who will do what by when• Date – risk identified/reviewed/next review

Responsibilities for Risk Management

• Members• Corporate Board• Corporate Leadership Team• Risk Coordination Manager• Corporate Risk Management Forum• All of us

Benefits of Risk Management

• Increased understanding and ownership of risk

• Consistent, shared view• Fewer surprises – issues highlighted

quicker• Improved decision-making• Visibility and evidence

Key contacts/ Further information: George Hook, Risk Coordination Manager, Ext: 6078Teresa Bengey, Head of Audit & Investigations, Ext: 8794