Review of the Corporate Risks University Council 24 November 2008

Overview Annual Review of the ‘mission-critical’ corporate risks Assessment of internal and external impacts on the achievement of the University’s objectives Voting process to determine the University’s exposure to the risks

The University’s Risk Hierarchy Corporate Risks  Strategic level risks linked to the achievement of the University’s objectives and performance measures.  Managed by UEB (delegated to the Risk Review Group). Operating Risks  Key strategic and operational risks relating to the operations of the University and cross-faculty support functions and services.  Managed by the Registrar Faculty Risks  Key strategic and operational risks for each of the 5 Faculties.  Managed by the Faculty PVC Academic Department Risks  Risks relating to the operations of each academic department.  Linked to objectives of the department and managed by the Head of Department. Professional Service Departmental Risks  Risks relating to the operations of each professional service department.  Linked to objectives of the department and managed by the Director of the Department.

Internal Impacts New structures University financial position Staff Internal processes

External Impacts Current economic climate Changing HE landscape and Government priorities National pay issues External relationships and partnerships

The Review Process Agreement of ‘mission critical’ risks Initial vote on inherent risk exposure (the combined likelihood and impact) - an assessment of how severe the risk would be if the University was not doing anything to mitigate the risk. Consideration of controls - activities currently underway that would help the University to lessen the impact or likelihood of each risk. Further vote on residual risk exposure – an assessment of where the University currently regards itself to be in relation to the risk. This is used to determine the proportionality of any further actions needed.

Risk Exposure ImpactVery HighVH/LVH/MVH/HVH/VH HighH/LH/MH/HH/VH MediumM/LM/M M/HM/VH LowL/LL/M L/HL/VH LowMedHighVery High Likelihood

Corporate Risks (1) Inherent ExposureResidual Exposure Risk DescriptionLikelihood/ Impact Likelihood/ Impact Failure to ensure that the appropriate procedures and environment are in place to support the identification and development of leaders across the University (academic and professional services). VH HM Insufficient selectivity in research excellence and a reluctance to deal with underperformance in weaker research areas may impact on the positioning of the University and lead to resource constraints. HVHHM Failure to nurture high performing staff at all levels of the University, including: recruiting, retaining and nurturing talent, prevents the University from achieving its goal of becoming world-leading. HHHM

Corporate Risks (2) Inherent ExposureResidual Exposure Risk DescriptionLikelihood/ Impact Likelihood/ Impact Failure to facilitate effective communication between all staff across the University prevents the ongoing development and implementation of the University's strategy. HVHMM Loss of student demand due to: failure to innovate in portfolio development through recognising market, student and employer needs; failure to maintain quality and student satisfaction; increasing private sector and international competition; and global economic uncertainty. HVHMM Failure to diversify income streams and respond with flexibility to changes in the funding regime (fees cap, RAE, fEC, capital funding framework, REF and alumni relations/fundraising) prevents the University from improving its financial position. HHMM

Corporate Risks (3) Inherent ExposureResidual Exposure Risk DescriptionLikelihood/ Impact Likelihood/ Impact Failure to develop a critical mass of corporate and strategic partnerships and to move towards a pipeline of future arrangements for research, knowledge exchange and collaborative provision at regional, national and international levels. HHMM National pay issues or local changes result in national or local level industrial action. HHMM Failure to develop and articulate a cohesive University strategy for its total portfolio of activities and across the whole University could prevent the University from delivering on its vision and ambitions. HHMM

Corporate Risks (4) Inherent ExposureResidual Exposure Risk DescriptionLikelihood/ Impact Likelihood/ Impact Failure to manage within expenditure caps for revenue budgets prevents the University from improving its financial position or leads to further deterioration. MHMM Failure to implement a fit-for-purpose University management structure and manage the transition to the new structure, impacts on the University's ability to meets its objectives. MHMM

Next Steps Revised format of the corporate risk register for reports to Council Mitigating and contingent actions identified Monitoring and management of the risks every quarter by Risk Review Group RRG reports to UEB, Council and Audit Committee