New Business Risk Appraisal by jbl89207


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									Appendix 1                                           Corporate Risk Register

                                                                                                                         Gross                                                                                  Net                                                                   Target
Risk No

                                                                                                                      (no controls)                                                                     (existing controls)                                                      (actions complete)
                                  Strap Line                              Detail of Risk                        Likely   Impact   Gross                      Current Controls                          Likely   Impact   Net                       Actions                      Likely   Impact   Net

                                                                                                                  L         I     Lx I                                                                   L        I      Lx I                                                     L        I      Lx I

                                                                                                                                           • TC Programme office management                                                 • Preparation of Outline Business Case 2
          James Crawford

                                                                                                                                           • Agreed investment to managing the change within the TC                         • TC - Change Academy - developing skills
                                                                                                                                           budget                                                                           • TC - ICT investment
                                                                                                                                           • TC service reviews to prioritise items for inclusion                           • TC - Benefits realisation and process to
                                                     Failure to manage change leading to inefficient use                                   • Corporate planning process                                                     capture
                                Managing                                                                                                   • Use of risk management                                                      16 • Corp services restruct- Clarity on roles
 1                                                   of resources, a failure to realise benefits resulting in     4        4          16                                                                 4        4                                                               3        4      12
                                 Change              breakdown in service delivery                                                         • BPR process approach                                                           responsibilities and working arrangements
                                                                                                                                           • Use of Prince2 methodology for project management

                                                                                                                                           • TC - Outline Business Case provides change projects                            • Lobbying of central govt.
                                                                                                                                           • Waste minimisation programme                                                   • Seek early diversion of waste from landfill
          Harold Collins

                                                     Failure to provide diversion of waste from landfill                                   • Measures to increase recycling at HWRC's and in                                through procurement of waste treatment
                                                     in the medium term (2009-13) before new waste                                         partnership with District Councils                                               contract
                                                                                                                                           • Renewal of Waste Contracts                                                     • Review business case for investment in trade
                                Waste                treatment plant becomes operational leading to                                        • Monitoring of LATS . (These would then be deleted from
 2                                                   breach of landfill allowance trading scheme targets
                                                                                                                  4        4          16                                                                 4        4      16 waste recycling with District Councils.               3        4      12
                              Management                                                                                                   the Actions column
                                                     resulting in multi million pound costs of buying                                      • Additional measures to reduce waste volumes
                                                     permits or paying fines.

                                                                                                                                           • European & Funding Unit Policy Development role -                                  • Use of Resources action plan
                                                                                                                                           exploiting funding                                                                   • Lobbying of central govt
                                                                                                                                           • Good GONW links                                                                    • Partnership working - collective resources
          Paul Heath

                                                                                                                                           • Explicit process for allocating resources                                          • New Local Area Agreement
                                                     Failure to optimise new initiatives leading to no                                     • Policy Managers remit                                                              • Transforming Cheshire process
                              Optimise new           exploitation of assets or new ways of working                                         • Budget Monitoring in year                                                          • Mobile flexible working
 3                                                   resulting in no service improvement or cost
                                                                                                                  3        4          12   • ICT strategy and application                                2        3       6     • Performance Clinics                             1        3       3
                               Initiatives                                                                                                 • Ongoing review and bid development process in place for                            • Enabled manager initiative
                                                     reductions                                                                            IT resources
                                                                                                                                           • Corporate Asset Management Plan 2006-11
                                                                                                                                           • Partnership guidance and training
                                                                                                                                           • Corporate plan process
                                                                                                                                           • Corporate plan - establishing priorities
                                                                                                                                           • Project Management core skills training                                        • Performance management process being
          Elizabeth Squires

                                                                                                                                           • Previous middle management and supervisory training                            developed
                                                                                                                                           • Performance Management Process being developed                                 • TC - Change Academy to equip staff with skills
                                                                                                                                           • Absence Management                                                             • Organisational development process
                                                     Lack of staff capacity both in terms of numbers and                                   • Continued investment in development training to                                • TC - Resourcing of skills training
                                                     skills leading to loss of morale, increased sickness,                                    improve staff succession                                                      • Enabled manager initiative - training and
 4                            Staff Capacity         resulting in failure to meet the changing agenda and
                                                                                                                  4        4          16
                                                                                                                                           • Monitoring of staff turnover by Board and Members
                                                                                                                                                                                                         4        4      16
                                                                                                                                                                                                                            technical solutions
                                                                                                                                                                                                                                                                                  3        3       9

                                                     loss of resilience                                                                    • Flexible deployment of staff
                                                                                                                                           • Use of agency and consultancy staff
                                                                                                                                           • IIP
                                                                                                                                           • Reduced uncertainty re single status•
                                                                                                                                           • Procurement - central contracts for agency workers

                              cdc9077a-f9b6-4416-8f76-87cfcd958943.xls                                                                                                                                                                                                         4/18/2011
                                                                                                                                                     • Information produced by Research & Intelligence                       • Action plan from scrutiny review
                                                                                                                                                     • Scrutiny Review process                                                - Lobbying central gov to give greater
                                                                                                                                                     • Scrutiny Review of planning for demographic change and                emphasis demographic change
      Alistair Jeffs

                                                                                                                                                     resulting action plan                                                    - Raise public awareness
                                                                                                                                                     • - Transforming Learning Communities Initiative for                     - Encourage partners and stakeholders to give
                                                                              Failure to plan for future demographic changes                         reduced pupil numbers                                                   greater priority to older people•
                                                       Demographic            leading to lack of planning to determine future shape                  • - Extra Care Housing - for increasing numbers of older                 - Priorities and resource allocation changed to
5                                                                             of services resulting in resources inappropriately
                                                                                                                                        4   4   16
                                                                                                                                                                                                                  3   4   12
                                                                                                                                                                                                                             reflect demographic change
                                                                                                                                                                                                                                                                                    2       4   8
                                                         Change                                                                                                                                                               - Spend money more smartly
                                                                              deployed and service delivery not meeting needs
                                                                                                                                                                                                                              - Promote employment & training opportunities
                                                                                                                                                                                                                             for older workforce
                                                                                                                                                                                                                              - Proactive and flexible approach to
                                                                                                                                                                                                                             employment of older people in CCC

                                                                              Failure to manage the impact of equal pay                              Single status process gives defence to claims                            * undetake an equal pay audit, and analyse any
      Elizabeth Squires

                                                                                                                                                                                                                              areas of occupational pay segragation . If this
                                                                              challenges leading to inability to have a robust
                                                                                                                                                                                                                              identifies any potential vulnerability, take action
                                                                              defence resulting in significant expenditure                                                                                                    to address issue. (note - this action depends on
                                                                              liabilities                                                                                                                                     the outcome of LGR as to the timing, as if we
                                                         Equal Pay                                                                                                                                                            become two unitaries it does not make sense to
6                                                                                                                                       3   4   12                                                                2   3   6   do the audit before 1 April 2009.)                    1       3   3

                                                                                                                                                     • Audit of current arrangements identified:                             • Critical activities identified and agreed
                                                                                                                                                      - Built in resilience - competence of managers                         • Work in progress to complete plans for critical
      Alistair Jeffs Alistair Jeffs Bill Tunnicliffe

                                                                                                                                                      - Built in resilience - size of organisation                           activities
                                                                              Inability to respond to an emergency situation                          - Arrangements exist for some incidents but not                        • Increase awareness and training
                                                                              leading to excessive demand on limited services                        documented                                                              • New data centre agreement to reduce impact
                                                         Business                                                                                    • Emergency Planning Unit - established procedures etc. to           12 • Sunguard contract to replace some servers if
7                                                                             resulting in the suffering of vulnerable members of the   3   4   12
                                                                                                                                                     deal with emergency
                                                                                                                                                                                                                  3   4
                                                                                                                                                                                                                             an incident occurs
                                                                                                                                                                                                                                                                                    2       2   4
                                                         Continuity           community and loss of reputation and standing of                       • Pandemic flu - work started re corporate arrangements                 •
                                                                              organisation                                                           • Business continuity officer in post
                                                                                                                                                     • Agreed strategy to put BC framework in place
                                                                                                                                                     • Increased awareness of BC
                                                                                                                                                     • Seek to influence central govt through lobbying                        • New Local Area Agreement
                                                                                                                                                     • Good relationships with Government Departments                         • Community engagement
                                                       Mismatch local         Failure to manage the mismatch between local and                       • Partnership Guidance in place                                          • Comprehensive Area Assessment
                                                                              national political agenda leading to potential                         •
8                                                        & national           disputes with Central Government resulting in a
                                                                                                                                        4   4   16                                                                3   3   9                                                         2       3   6

                                                          agenda              potential loss of funding, reputation and standing

                                                                                                                                                     • Previous MTS process has established a process of                      • Transforming Cheshire projects and better
                                                                                                                                                     prioritisation and scrutiny with Members                                 links with resource allocation
                                                                                                                                                     • Corporate Plan Vision for 2010.                                        • Tightening of corporate plan and priorities
                                                                              Lack of focus and clarity on the Council's priorities                  • Corporate plan process                                                 • New LAA
                                                         Council's                                                                                   • Service Reviews by PWC to look for areas of                            • Performance clinics
9                                                                             leading to mixed messages on resource allocation          4   4   16                                                                3   3   9                                                         2       3   6
                                                         Priorities           resulting in lack of progress in key areas.
                                                                                                                                                     • Excelcis forces the golden thread to link corporate to
                                                                                                                                                     service objectives
                                                                                                                                                     • White paper on local government giving a clearer view
                                                                                                                                                     from central gov
                                                                                                                                                     • Senior management training programme                                   • Analysis of good competencies
                                                                                                                                                     • Middle management training programme                                   • Change Academy. Local govt leadership

                                                                              Lack of effective leadership throughout the

                                                                                                                                                     • Heads of Service meetings                                              • Idea Leadership Academy
                                                                              organisation leading to lack of focus, unnecessary
                                                          Effective                                                                                  • Appraisal process - linking to service plans                           • Local Government Act changes roles of
10                                                                            bureaucracy and delays to decision making resulting       4   4   16   • Senior Management Conferences                              3   3   9   Members to local leaders                              2       3   6
                                                         leadership           in opportunities not grasped and resources not                         • Accredited Member training & development programme
                                                                              effectively employed.                                                  • Workforce Development Plan

                                                       cdc9077a-f9b6-4416-8f76-87cfcd958943.xls                                                                                                                                                                                 4/18/2011
                                                                                                                        • Managed Audit of financial systems                                        • Corporate Governance Training - Govern-it
     Bill Tunnicliffe
                                                                                                                        • Existing control reports in production                                    game
                                                                                                                        • Partaking in National Fraud Initiative every other year                   • Financial training and awareness
                                               Lack of compliance with policies and                                     • Internal Audit support to fraud investigations                            • Financial management processes
                                               recommended best practice leading to a lack of                           • Governance Group                                                          • Corporate Governance safeguarding
11                      Compliance             internal controls resulting in fraud, irregularity, waste
                                                                                                           4   4   16
                                                                                                                        • Statutory Officers Group
                                                                                                                                                                                       3   3   9
                                                                                                                                                                                                    resources strategy and training
                                                                                                                                                                                                                                                       2        3   6

                                               and inefficiency and lower level of service for users.                   • Governance Committee                                                      • Better use of data Cultural change required
                                                                                                                        • Appointment of investigations officer                                     • Enabled manager training
                                                                                                                                                                                                    • TC - cultural change to increase compliance

                                                                                                                        • Existing financial procedures and rules                                   • Partnerships guidance training - including
                                                                                                                        • Finance training (but this isn't mandatory)                               shared risk assessments
                                                                                                                        • Contracts and Procurement Team advice & guidance                          • Performance management arrangements
                                                                                                                        • Financial Risk Assessment as part of the                                  helps focus on effectiveness partnerships
     Lisa Green

                                                                                                                          pre-qualification process and the tender evaluation                       • Compacts
                                               Breakdown in partnership arrangements (including
                                                                                                                        • Partnership Guidance - Contingency plan & exit strategy                   • Local Gov Act includes new processes to
                                               the LAA and suppliers) leading to services not
                         Managing                                                                                       for whole life of contract                                                  scrutinise partners (capacity to carry out?)
12                                             delivered necessitating alternative arrangements to be      3   4   12   • Audit of key partnerships - individual reports and general   3   4   12                                                      2        4   8
                        Partnerships           put in place resulting in staff capacity and skills                      corporate messages
                                               issues and failure in service delivery                                   • Partnership Accountant appointed and Guidance
                                                                                                                        • LAA applying the discipline of Excelcis
                                                                                                                        • Partnership guidance - including contingency planning
                                                                                                                        and exit strategy
                                                                                                                        • Comprehensive and effective constitution                                  • Corporate governance training
     Gerry Budd

                                                                                                                        • Promoting and sustaining highest ethical standards
                                               Failure of the political process due to breakdown                        • Clarity of relationships, roles and responsibilities of
                         Breakdown                                                                                        Members and Officers (Member /Officer Protocol)
                                               of relationships between Members and officers
13                        political            leading to poor decision making resulting in a failure
                                                                                                           4   4   16   • Promoting and sustaining an environment of trust and         2   3   6                                                       2        3   6
                                                                                                                          respect between Members and Officers
                          process              to meet objectives and deliver services

                                                                                                                        • Robust procedures / constitutional arrangements                           • Encourage services seek legal advice at the
     Gerry Budd

                                                                                                                        • Timely receipt of appropriate legal and financial advice                  outset of
                                               Failure to effectively defend challenges to the                          • Effective service planning                                                 policy decisions.
                           Legal               Authority's actions leading to high costs, increased                     • Effective staff appraisal and development processes to                    • Improved Risk Management
14                      challenge to           stress and low staff morale, resulting high aversion        4   4   16     ensure pro-active and well informed supervisors and          2   4   8                                                       1        4   4
                                               to risk and a reduction in quality of services and                         managers
                         decisions                                                                                      • Governance arrangements
                                                                                                                        • Development of LAA and working effectively with
                                                                                                                        • Engagement with the Cheshire Partnerships Framework
                                                                                                                        • Citizen's Panel (Cheshire Voice)                                          • Partnership engagement strategy to support
                                                                                                                        • Community development involvement in Neighbourhood                        Local Area Agreement
                                                                                                                                                                                                    • Corporate consultation & engagement strategy
     Lisa Green

                                               Failure to gain effective community participation in                     • Older Peoples Network
                                               planning, design and delivery of services leading                        • Youth reference group (through Connexions)                                .TC - implementation and development of CRM
15                                             to unrealistic expectations, complaints, tensions and       4   4   16   • Parish Council liaison, Parish Plans and the                 3   4   12                                                      3        3   9
                        Engagement             conflict resulting in services not targeting need and                       development of "Quality Parishes"
                                                                                                                        • Third sector strategy
                                               resources not used effectively utilised.
                                                                                                                        • Research and Intelligence Unit
                                                                                                                          Locality Boards

                                                                                                                                                                                                  • TC - implement information management
                                                                                                                        • Research & Intelligence produce information and                         workstream & governance
                                                                                                                        statistical data for planning                                             • Development of Business Intelligence (inc
     Lisa Green

                                                                                                                        • Controls to restrict access to Data Centre and network                  performance management reporting)
                                               Failure to access accurate or appropriate                                  equipment                                                               • Data sharing with partners
                         Information           information leading to decisions based on                                • Investment in information management systems and user                   • Implementing plans to move data centre
16                                             inappropriate data resulting in ineffective use of
                                                                                                           4   4   16   education                                                      4   3   12 • Collaboration (Sharepoint)                         2        3   6
                           Access                                                                                       • Risk assessments of existing systems and networks                       • Better archiving of documents
                                               resources and failure of service delivery                                  on-going
                                                                                                                        • Information Management Team appointed
                                                                                                                        • Plans to move data centre agreed
                                                                                                                        • Performance management data from Excelcis being
                        cdc9077a-f9b6-4416-8f76-87cfcd958943.xls                                                                                                                                                                                    4/18/2011
                                                                                                                                                          • Clear policies and procedures
                                                                                  Failure of service delivery leading to death or                         • Staff training
                                                                                  serious injury of a person for whom the Authority is                    • Health & Safety policies and quality assessment process
     Jeremy Taylor Bill TunnicliffeBill Tunnicliffe RMG

                                                          Death / serious                                                                                 • Register of high risk properties
17                                                                                responsible resulting in personal tragedy, a loss of       4   4   16                                                               2   3   6                                                      1        3   3
                                                              injury              reputation, financial implications or other sanctions                     for lone workers etc..
                                                                                  which may contribute to further service delivery failure
                                                                                                                                                          • Forward planning in MTS / TC programme                               • CFO review (risk based budgeting, enabled
                                                                                                                                                          • Budget monitoring in year                                            manager and reporting changes)
                                                                                  Lack of financial management leading to poor                            • Financial Awareness training                                         • Enabled manager training
                                                            Financial                                                                                     • Updated Financeial Procedure rules                                12 • On-going financial training
18                                                                                decision making and failure to optimise funding            4   4   16
                                                                                                                                                          • Financial Management Guide for Managers
                                                                                                                                                                                                                      3   4
                                                                                                                                                                                                                                 • Shared service production unit
                                                                                                                                                                                                                                                                                     3        3   9
                                                           Management             resulting in shortfalls and service failure                             • Governance arrangements                                              •
                                                                                                                                                          • Internal Audit                                                       •
                                                                                                                                                          • Policy statement s151 officer budget report                          • Maximise external funding
                                                                                                                                                          • Regular monitoring of financial health indicators (CPA               • Review of charging policies
                                                                                  Lower reserves and contingencies combined with                          Use of Res)                                                            • Improve reports to Members on all reserves
                                                             Financial                                                                                    • Treasury management strategies                                       • Better information from monitoring high risk
                                                                                  a tighter funding regeme leading to loss of flexibility
19                                                                                and ability to invest in services resulting in unplanned
                                                                                                                                             4   4   16   • Use of external consultants to monitor econimic           3   4   12 budgets                                             2        3   6
                                                             Flexibility                                                                                  conditions and financial markets                                       • Regular monitoring of balance sheet not just
                                                                                  service reductions                                                      • Pensions fund investment strategy                                    revenue account

                                                                                  To be updated on receipt of a decision in
20                                                               LGR              November
                                                                                                                                             4   4   16                                                               4   4   16                                                                  0

                                                           cdc9077a-f9b6-4416-8f76-87cfcd958943.xls                                                                                                                                                                               4/18/2011

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