1. -To insert a Zurich picture click on the "camera"-icon in the Zurich CI toolbar and follow the instructions. -To insert a picture from your personal files, click on the "Insert Picture from File" icon here on the right. Please make sure that this picture follows the Zurich core elements available on the "book"-icon in the Zurich CI toolbar. -To keep this neutral background, just leave it as it is. Note: this message will not be displayed in the presentation mode. CONFIDENTIAL Risk Management 13 October 2015 Alan Ross Glasgow Caledonian University Zurich Risk Engineering

2. © Zurich Insurance Company CONFIDENTIAL 2 © Zurich  Introduce you to the principles of effective risk management  Discuss the benefits of risk management  Prepare a mini Risk Register for –Your school or department –A project you are involved in  Provide an overview of Risk management in GCU Purpose of the session

3. © Zurich Insurance Company CONFIDENTIAL 3 © Zurich Why do we bother with risk management?

4. © Zurich Insurance Company CONFIDENTIAL Why do we bother? 01/02/2016 4 Push Factors Reasons we have to: - Auditors & inspectors Corporate governance / good management practice Stakeholders & partners Pull Factors Reasons we like to: - Feel more confident about achieving aims & objectives Look forward to predict & avoid problems Proactive approach rather than reactive; or knee jerk Protect and enhance your reputation Feel better about taking risks Ensure risks taken are within the University's ‘appetite for risk’

5. © Zurich Insurance Company CONFIDENTIAL 5 © Zurich  Ensures risks and uncertainties are considered early in the project management process  Provides increased confidence in investment and management decisions  Allows appropriate contingency plans or exit strategies to be put in place - without the delay of figuring out what to do  Risks and responses can be documented as an historic record for future reference; helps learn lessons for the future  Enables more effective communication between partners and stakeholders about risk Benefits of Project Risk Management

6. © Zurich Insurance Company CONFIDENTIAL 6 © Zurich Risk management is the identification, assessment, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives, whether positive or negative) followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.ISO 31000 A definition

7. © Zurich Insurance Company CONFIDENTIAL 7 © Zurich How do we do risk management ?

8. © Zurich Insurance Company CONFIDENTIAL GCU Risk Management Framework 8

9. © Zurich Insurance Company CONFIDENTIAL Risk Management Process 9 Manage Evaluate Identify Risks Monitor & Review

10. © Zurich Insurance Company CONFIDENTIAL 10 © Zurich Your turn – risk identification In your view what are the most significant risks to your project? –What might stop you delivering your aims & objectives? –Where have problems occurred in the past? –Are there lessons we can learn from others? –What can we not afford to go wrong? –What could prevent us from delivering? –What could impact on the quality of the ‘end product’? –What assumptions have we made that could turn out differently? Think about each risk in terms of its cause(s) & possible consequences

11. © Zurich Insurance Company CONFIDENTIAL Case Study Heart of Campus  Major capital project for campus renovation - approx £25m over 5 years.  Step change in attractiveness of University to potential students  Increased opportunity for income  If successful will help the sustainability of the University in the medium to long term 11

12. © Zurich Insurance Company CONFIDENTIAL Risk Management Process 12 Manage Evaluate Identify Risks Monitor & Review

13. © Zurich Insurance Company CONFIDENTIAL Evaluation / Prioritisation 13 2/1/2016

14. © Zurich Insurance Company CONFIDENTIAL Risk Management Process 14 Manage Evaluate Identify Risks Monitor & Review

15. © Zurich Insurance Company CONFIDENTIAL 15 © Zurich Risk Control / Management What are our options for managing a risk? Broadly there are 4 options: 1. Tolerate the risk 2. Transfer the risk (critical when working with 3 rd parties) 3. Terminate the risk 4. Treat the risk

16. © Zurich Insurance Company CONFIDENTIAL 16 © Zurich Risk Control / Management Options:  Early warning indicators, can be formal or informal  Strategies and policies  Quality assurance process  Checking and control procedures  Managerial and supervisory controls  Monitoring key indicators  Staff skills, training & qualifications  Planning, budgeting & reporting  Internal & external reviews  Contractual arrangements  Vetting of partners & suppliers  Internal & external communications  Physical controls  Back up & recovery arrangements / contingencies or exit strategies  Project management governance arrangements

17. © Zurich Insurance Company CONFIDENTIAL Risk Management Process 17 Manage Evaluate Identify Risks Monitor & Review

18. © Zurich Insurance Company CONFIDENTIAL 18 © Zurich Risk Monitoring Discussion Key questions to answer? Reporting – Internal & External  Who must see the risk register, when, and how often?  Who should we share the risk information with, and how often? Updating  How often should we review risk information? –Monthly, quarterly etc

19. © Zurich Insurance Company CONFIDENTIAL 19 © Zurich Risk Appetite – Overview Definition “the amount or type of risk the University is prepared to tolerate in order to achieve its strategic aims and objectives”

20. © Zurich Insurance Company CONFIDENTIAL 20 © Zurich Risk Appetite – Overview Why?  Underpins the decision making process  Gives an indication of the risks which are acceptable to the University  Helps ensure the response to risk is appropriate  It’s about balancing risk and costs with benefits

21. © Zurich Insurance Company CONFIDENTIAL 21 © Zurich Risk Appetite – Key Points  Little appetite for risks to University’s mission  Open to risks related to global engagement & enterprise & innovation  Significant risk exposure should only be accepted when benefits are also significant  If exposure exceeds appetite then this should be discussed with whoever signs off your project

22. © Zurich Insurance Company CONFIDENTIAL 22 © Zurich Risk Appetite – Key Points Even if the financial limits are within an individual’s delegated authority, where the activity will result in a level of risk exposure greater than the University’s risk appetite in that area, then delegated authority must be escalated to Executive Board

23. © Zurich Insurance Company CONFIDENTIAL GCU Risk Management

24. © Zurich Insurance Company CONFIDENTIAL 24 © Zurich Questions ?

25. © Zurich Insurance Company CONFIDENTIAL Risks you face?  Political situation (UK and abroad)  Over reliance on 1 or 2 income streams, e.g. 1 or 2 key customers, or students from a particular country  Economic situation  Academic reputation  Change management  Major events or field trips  Data protection / management of information  Skill sets & other workforce risks  Recruitment & retention of staff  Funding cuts or changes Compliance with regulations, law or internal policies & procedures, e.g. UK Visas & Immigration Loss of IT or other important infrastructure Contractual, supplier or partnership risks Change in government policies Health & safety Student / customer satisfaction Competition with other institutions Major projects Compliance 01/02/2016 25