everyone is a risk manager risk & opportunity management

Everyone is a risk manager

Risk & Opportunity Management


Risk ManagementComponents

C. Maintenance of Corporate Risk

Register

G. Decision Making

RISK & OPPORTUNITY MANAGEMENT

STRATEGY

F. Partnership Risk Management

D. Reporting on Risk Management (Assurance)

E. Project Risk Management

B. Service Risk Registers

A. Risk Management Training & Guidance


Delivering Council Priorities

Team/Project Risk Register




Service Risk Register


Corporate Risk Register

Strategic Directors

Group

CabinetCorporate

Audit Committe

TEAM RISK MANAGEMENT

SERVICE RISK MANAGEMENT

CORPORATE RISK

MANAGEMENT

TEAM MANAGEMENT

SERVICE PLANNING

CORPORATE PLANNING


Page 1

The Risk & Opportunity Management Framework(Risk Register Perspective)

Individual Staff Objectives

(PDR Process)

Risk Assess Ability to Meet Team Objectives

Team Risk Register

Include Significant Team Risks Within Service Risk Register Identify Impact on Meeting

Service Objectives


Include Significant Service Risks Within Corporate Risk

Register along with Risks that Can Only be Managed by the

Council as a Whole.


Step 1

Team Objectives

Step 2

Service Plan Objectives

Step 3

Corporate Objectives

Operational Strategic


Team Risk Registers

Page 2



(PDR Process)


Team Risk Register

· Day to Day risks regarding teams roles

· Focus on detail

· Strong link to performance management

· Reflects objectives given to staff (PDR)


Service Objectives




Council as a Whole.


Step 1

Team Objectives

Step 2


Step 3




Service Risk Registers

Page 3



(PDR Process)


Team Risk Register

· Recommended Best Practice


· Focus on detail




Service Objectives


· Higher Level Risks related to delivery of Service Plan and Corporate Priorities

· Register is more strategically orientated

· Escalation of Risks

· Risk scores may change to reflect the perspective of the Service (DD)

· Reviewed at Management Team meetings

· Quarterly review by Risk Management Team



Council as a Whole.


Step 1

Team Objectives

Step 2


Step 3





Page 4



(PDR Process)


Team Risk Register


· Focus on detail




Service Objectives


· Higher Level Risks related to delivery of Service Plan and Corporate Priorities

· Register is more strategically orientated

· Escalation of Risks

· Risk scores may change to reflect the perspective of the Service (DD)

· Reviewed at Management Team meetings

· Quarterly review by Risk Management Team



Council as a Whole.


· Risks that have a Corporate Impact in terms of delivering Corporate Priorities

· Risks that are not necessarily owned by one service area

· Major Financial or Reputational Impact

· Managed by SDG

· Quarterly review by Risk Management Team with assistance from SD/DD’s

Step 1

Team Objectives

Step 2


Step 3




The Risk Register Template This is the first time we have fundamentally reviewed the risk register template based on feedback from users :


Key Changes – The Template

· A revised weighted 5×5 risk matrix with simpler likelihood & impact definitions that produces easier to understand scores

· The use of dropdown menus to make input easier as well as contextual help and where appropriate, data validation

· Improved presentation of the register including a ‘Top 10’


Key Changes – The Risk Assessment Methodology· It uses current mitigated risk

assessment (i.e. assessing the likelihood and impact of the defined risk based on actions implemented to date (completed or on-target).

· Pre / post mitigation risk assessment is not assessed / recorded.


Likelihood & Impact

Scale Likelihood Scale Impact

Negligible1

Not Expected to Happen (<1%)

Negligible1

Negligible impact on Service/Project Delivery

Low2

Could Happen (2 – 20%)

Small2

Small impact on Service/Project Delivery

Medium3

Quite Often Occurs(21% - 49%)

Medium3

Medium impact on Service/Project Delivery which may result in not meeting

objectives

HighMore Than Even Chance

(50% - 95%)High

4

Severe threat to Service/Project Delivery which may result in not meeting

objectives

Very HighCritical- almost certain

(96%-100%)Critical

5Disastrous with Objectives not being Met


Impact

Impact Cost Time Quality

Negligible Variations manageable by virement against internal budget headings

Slight slippage against internal targets

Slight reduction in quality/scope with no overall impact on usability/standards

Low Requires some additional funding from Service

Slight slippage against key milestones or published targets

Failure to include certain 'nice to have' elements or 'bells and whistles' promised to stakeholders

Medium Requires significant additional funding from Service/Council

Delay affects key stakeholders and causes loss of confidence in the project

Significant elements of scope or functionality will be unavailable

High Requires significant reallocation of Council funds (or borrowing) to meet objectives

Failure to meet key deadlines in relation to the financial year or strategic plan

Failure to meet the needs of a large proportion of stakeholders

Critical Increases threaten viability of Service

Delay jeopardises viability of Service

Service outcomes effectively unusable


Key Changes – Action Planning

· It allows improved action planning that, whilst removing the detailed plans from the register, ensures there are robust monitoring arrangements in place.


Key Changes – Reporting

· Improved presentation of the register including a ‘Top 10’ Risk report and the ability to tailor presentation by hiding columns

· The introduction of risk categorisation and risk score tracking allowing us to examine risk trends in more detail

· The introduction of graphical reporting that can be used to report on the contents of the register


Key Changes– The Future


Questions?

everyone is a risk manager risk & opportunity management

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