Risk Management Performance & Audit Panel 24 January 2006 George 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 Process Risk 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 Quarterly Annually

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: 6078 Teresa Bengey, Head of Audit & Investigations, Ext: 8794