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Role of Corporate Finance Management

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									Risk Management
Corporate Risk Register- Appendix 1



Date Last Updated     22-Sep-06

Updated By            Christiane Jenkins


                                                                 Risk Rating (without controls)                                                                  Risk Rating (with controls)
Risk                  Type of   Risk Description (including      Likelihoo Impact                                                        Risk Owner            Likelihoo Impact
     Risk                                                                              Overall Controls in Place                                                                      Overall
 No.                  Risk      Implications)                     d (1- 4)   (1 - 4)                                                        (Name &             d (1- 4)   (1 - 4)
                                                                                          0                                                                                              0
                                Inability to demonstrate value                                    The ALG has a range of controls in
                                for money (external and                                           place. The ALG regularly reports to
                                internal) resulting in loss of                                    Leaders Committee on local
                                borough financial support. In                                     government finance issues, to ensure
                                addition, income targets may                                      that lines taken reflect the majority
                                not be achieved, not all                                          view, with a range of work being
                                funding may be received and                                       undertaken so that all boroughs can
                                collected and reduced                                             benefit. The London Centre of
                                funding from Europe may be                                        Excellence Business Plan is being
                                available.                                                        closely monitored, along with the EOD
                                                                                                  trading account. A potential loss of
                                                                                                  Idea/EO grant funding is being
                                                                                                  considered in conjunction with the LGA
                                                                                                  with a direct funding body under       Frank Smith,
ALG Loss of borough
                          3                                          2         2          4       discussion. TEP have negotiated a      Director of Finance       1          1          1
 1 support
                                                                                                  three year deal with TfL to manage the and Administration
                                                                                                  costs of the Freedom Pass scheme,
                                                                                                  with other service delivery elements
                                                                                                  such as Consumer Direct managed
                                                                                                  through performance clauses in
                                                                                                  contracts. The risk of boroughs
                                                                                                  withdrawing from the Housing Borough
                                                                                                  Subscription is managed through
                                                                                                  meetings with funding bodies and
                                                                                                  reviews of borough projects. Poor
                                                                                                  financial settlements for boroughs on
                                                                                                  housing revenue finance would create a
                                                                                                  lack of support from boroughs. Unpaid
                                                                                                  invoices are chased by the Corporation
                                                                                                  of London after 21,35 and 49 days
Risk Management
Corporate Risk Register- Appendix 1



Date Last Updated       22-Sep-06

Updated By              Christiane Jenkins


                                                                Risk Rating (without controls)                                                                      Risk Rating (with controls)
Risk                    Type of   Risk Description (including Likelihoo Impact                                                             Risk Owner             Likelihoo Impact
     Risk                                                                             Overall Controls in Place                                                                          Overall
 No.                    Risk      Implications)                   d (1- 4) (1 - 4)                                                            (Name &              d (1- 4)   (1 - 4)
                                  Inability to meet statutory and                                The organisation has a number of
                                  best practice requirements                                     controls in place to address its statutory
                                  around business continuity,                                    responsibilities. Financial controls
                                  non compliance with external                                   include the use of the final accounts
                                  auditor recommendations,                                       timetable produced by Corporation of
                                  lack of a corporate                                            London and weekly reconciliations
                                  governance framework,                                          undertaken during closure period.
                                  freedom of information act                                     There is a weekly Finance Team
                                  and information management                                     meeting with the Director to ensure
                                  issues                                                         deadlines met. Robust budget
                                                                                                 monitoring is be achieved through an
                                                                                                 agreed indicator for reporting monthly
                                                                                                 salaries forecasts to management team
    Meeting statutory                                                                            and detailed quarterly budget              Frank Smith,
ALG
    and best practice       3                                      2          4          8       monitoring reports to EOs and funding      Director of Finance       1          2          2
 2
    requirements                                                                                 stream committees. A partial business and Administration
                                                                                                 continuity plan in place and IT disaster
                                                                                                 recovery is managed through a
                                                                                                 duplicate off site server which allows
                                                                                                 partial immediate restoration. Effective
                                                                                                 relationship management has secured
                                                                                                 a positive relationship with the external
                                                                                                 auditors. A Freedom of Information Act
                                                                                                 principal officer is in place with regular
                                                                                                 monitoring to committee on FOI
                                                                                                 requests processed. IN addition, a lead
                                                                                                 officer for corporate governance has
                                                                                                 been identified with an action plan to
                                                                                                 address areas for improvement based
                                                                                                 on best practice principles under
Risk Management
Corporate Risk Register- Appendix 1



Date Last Updated     22-Sep-06

Updated By            Christiane Jenkins


                                                                Risk Rating (without controls)                                                               Risk Rating (with controls)
Risk                  Type of   Risk Description (including     Likelihoo Impact                                                        Risk Owner         Likelihoo Impact
     Risk                                                                             Overall Controls in Place                                                                   Overall
 No.                  Risk      Implications)                    d (1- 4)   (1 - 4)                                                        (Name &          d (1- 4)   (1 - 4)
                                Changes in role, corporate                                       The proposed changes to London
                                priorities, membership and                                       governance arrangements along with
                                organisation structure of ALG                                    the forthcoming local elections will
                                following elections; changes                                     require changes to the priorities and
                                in GLA powers and remit,                                         structure of the organisation. The ALG
                                restructuring of local                                           is managing this risk through early
                                government                                                       engagement with the Government
                                                                                                 Consultation Paper, enabling early
                                                                                                 consideration of implications for ALG
                                                                                                 role and structure. The current
                                                                                                 fundamental review process will deliver
                                                                                                 a flexible organisation structure,
                                                                                                 capable of responding to the future
    Structural and                                                                               direction of members and role of ALG in
ALG                                                                                                                                      Martin Pilgrim,
    organisational      1,6,7                                       2         2          4       London governance arrangements.                               2          1          2
 3                                                                                                                                       Chief Executive
    change                                                                                       The ALG's engagement with Capital
                                                                                                 Ambition is being secured through
                                                                                                 contact between the Chief Executive
                                                                                                 and the Mayor and GLA. Any potential
                                                                                                 loss of a leading role for boroughs in
                                                                                                 the successor body to the London
                                                                                                 Housing Board is minimised through
                                                                                                 lobbying of political contacts and
                                                                                                 completing work to strengthen the
                                                                                                 strategic housing role. Changes to the
                                                                                                 introduction of the new commissioning
                                                                                                 process and priorities for services may
                                                                                                 be contentious following the election
                                                                                                 and will be managed through early
                                                                                                 meetings with members. Any delays in
Risk Management
Corporate Risk Register- Appendix 1



Date Last Updated     22-Sep-06

Updated By            Christiane Jenkins


                                                                Risk Rating (without controls)                                                                       Risk Rating (with controls)
Risk                  Type of   Risk Description (including     Likelihoo Impact                                                             Risk Owner            Likelihoo Impact
     Risk                                                                             Overall Controls in Place                                                                           Overall
 No.                  Risk      Implications)                    d (1- 4)   (1 - 4)                                                             (Name &             d (1- 4)   (1 - 4)
                                Inability to support revised                                     New demands placed on the
                                demands on organisation                                          organisation as a result of any changes
                                following the outcome of the                                     in priorities will be managed through the
                                ALG fundamental review                                           performance management process.
                                including reduced ability to                                     Objectives in the Business plan have
                                co-ordinate and provide input                                    been aligned with outcome measures
                                into government reviews and                                      and cascaded into staff objectives and
                                proposed legislation,                                            appraisal. Risk registers are being
                                increased staff turnover and                                     established and a review mechanism is
                                recruitment.                                                     in place. The organisation will ensure it
                                                                                                 can support members on ad- hoc
                                                                                                 requests through 'horizon scanning'
                                                                                                 activity to identify significant issues.
                                                                                                                                             Christiane Jenkins,
                                                                                                 Human resources targets on absence,
ALG                                                                                                                                          Director of
    Capacity              8                                         2         4          8       recruitment and retention will be                                     1          2          2
 4                                                                                                                                           Corporate Strategy
                                                                                                 monitored to ensure that staffing levels
                                                                                                                                             and Performance
                                                                                                 are meeting budgeted totals. To ensure
                                                                                                 that ALG members are given an
                                                                                                 opportunity to input into government
                                                                                                 legislation, policy and consultation
                                                                                                 papers, a tracking system will be
                                                                                                 introduced to identify opportunities and
                                                                                                 ensure that Members have been given
                                                                                                 an opportunity to comment through
                                                                                                 committee papers and informal
                                                                                                 consultation. Monitoring of responses to
                                                                                                 Government will be undertaken to
                                                                                                 ensure that Members views have been
                                                                                                 circulated within appropriate
                                                                                                 timescales. Other directorate will
Risk Management
Corporate Risk Register- Appendix 1



Date Last Updated     22-Sep-06

Updated By            Christiane Jenkins


                                                                Risk Rating (without controls)                                                                    Risk Rating (with controls)
Risk                  Type of    Risk Description (including    Likelihoo Impact                                                           Risk Owner           Likelihoo Impact
     Risk                                                                             Overall Controls in Place                                                                        Overall
 No.                  Risk       Implications)                   d (1- 4)   (1 - 4)                                                           (Name &            d (1- 4)   (1 - 4)
                                 Reputation management                                           The controls in place are concentrated
                                 issues, resulting in                                            around the Business Plan includes
                                 insufficient coverage of ALG                                    which publicises the priority areas for
                                 concerns at the local,                                          the ALG and is supported through a
                                 regional and national levels                                    wide range of publicity and
                                 and ineffective lobbying.                                       communication channels including the
                                                                                                 development of a stakeholder relations
                                                                                                 strategy and database. Outcome
                                                                                                 measures include the development of
                                                                                                 partnerships and completion of specific
                                                                                                 monitoring activities including
                                                                                                 presentation of cases to Government       Ceri Edwards,
ALG                                                                                              on identified issues. Lobbying success    Director of
    Reputation         1,2,6,8                                      2         2          4                                                                          1          1          1
 5                                                                                               is monitored through perceived            Communications
                                                                                                 relevance of ALG to boroughs as           and Public Affairs
                                                                                                 monitored by attendance at forums and
                                                                                                 meetings and feedback from
                                                                                                 stakeholder groups. Effectiveness of
                                                                                                 lobbying is determined by achievement
                                                                                                 of available funding, number of
                                                                                                 representations produced, number of
                                                                                                 meetings with Ministers and attendance
                                                                                                 of officials at meetings.
Risk Management
Corporate Risk Register- Appendix 1



Date Last Updated     22-Sep-06

Updated By            Christiane Jenkins


                                                                 Risk Rating (without controls)                                                                      Risk Rating (with controls)
Risk                  Type of   Risk Description (including      Likelihoo Impact                                                            Risk Owner            Likelihoo Impact
     Risk                                                                              Overall Controls in Place                                                                          Overall
 No.                  Risk      Implications)                     d (1- 4)   (1 - 4)                                                            (Name &             d (1- 4)   (1 - 4)
                                ALG policies not compliant                                        An Equalities Impact Assessment
                                with equalities legislation -                                     process has been introduced and
                                Risk of discriminating against                                    applied to all new ALG policies to
                                service users from                                                ensure that processes are compliant
                                disadvantaged groups. Risk                                        with legislation. Monitoring of
                                of prosecution and damaged                                        demographic information around direct
                                ALG reputation for failure to                                     service users will be undertaken to
                                comply with current                                               manage potential challenges to ALG
                                legislation on gender, race                                       policy. All staff have received equality
                                and disability and expected                                       and diversity training. The Business       Christiane Jenkins,
ALG                             legislation on faith, sexual                                      Plan includes a corporate equalities       Director of
    Non-compliance      1,6,7                                        2         2          4                                                                            1          2          2
 6                              orientation and age.                                              work programme and all reports must        Corporate Strategy
                                                                                                  include an Equalities Implications         and Performance
                                                                                                  paragraph. Equality Impact
                                                                                                  Assessments must be carried out on all
                                                                                                  new and revised policies and functions.
                                                                                                  Monitoring of ALG key performance
                                                                                                  indicators around equality and diversity
                                                                                                  completed on a regular basis.
                                          Types of Risk
No   Risk                                                          Definition
 1   Compliance    Risk of failing to comply with the ALG’s statutory requirements.
 2   External      Risks from changing public or government attitudes.
 3   Financial     Risks arising from spending, fraud or impropriety, or insufficient resources.
                   Risks associated with the delivery of services to the public and boroughs – arising, for example,
4    Operational
                   from recruitment difficulties, diversion of staff to other duties, or IT failures.
5    Project       Risks of specific projects missing deadlines or failing to meet stakeholder expectations.
6    Reputation    Risks from damage to the organisation’s credibility and reputation.
                   Risks to our stakeholders that need to be taken into account in our planning and service provision
7    London
                   – for example, terrorism risks.
                   Risks arising from policy decisions or major decisions affecting organisational priorities; risks
8    Strategic
                   arising from senior-level decisions on priorities.
                                                                      Risk Rating
                                           Very High
                                                            4           8             12             16
                                              (4)


                                            High (3)        3           6              9             12


                              Likelihood
                                           Medium (2)       2           4              6             8



                                            Low (1)         1           2              3             4


                                                                                                Very High
                                                        Low (1)   Medium (2)       High (3)
                                                                                                   (4)

                                                                     Impact
                                                                    Definitions
Likelihood                                                        Impact
Low: Rare (the risk may occur in exceptional circumstances)       Low : minimal financial losses; service delivery unaffected; no legal implications; unlikely
                                                                  to affect the Boroughs or Londoners; unlikely to damage reputation.

Medium: Possible (the risk may occur in the next 18 months)       Medium : medium financial losses; reprioritising of services required; no legal concerns
                                                                  raised; minor impact on the Boroughs or Londoners; short-term reputation damage.

High: Likely (the risk is likely to occur more than once in the   High : major financial loss; need to renegotiate business plan priorities; changes to some
next 12 months)                                                   organisational practices due to legislative amendments; significant impact on the Boroughs
                                                                  or Londoners; longer-term damage to reputation.
Very High: Almost certain (the risk is likely to occur within 6   Very High : huge financial loss; key deadlines missed or priorities unmet; legal
months or at a frequent intervals)                                implications (e.g. potential legal challenge, with substantial implications for the ALG);
                                                                  major impact on Boroughs or Londoners; loss of stakeholder public confidence.
Risk Management
Risk Management
Risk Monitoring Update



Division                                                                         Period

Director                                                                         Reviewed By



 1a   Have any of the risks detailed in your register occurred during the last
      monitoring period? If yes, provide details.
 1b        Have any of the controls been implemented to manage risks which
           occurred?
 1c        How effective were the controls?

 1d        Do any further controls need to be introduced?

 1e        What are the implications on the division and ALG (financial,
           reputation and operationally)
 2    Have any new risks been added?

 3    Have any risks been removed? If so, briefly explain why.

 4    Have any existing risks changed status? If so, briefly explain why.
                            Risk Reporting
       Responsible
Risk                 Type   Implications     Controls Implemented to control   Comment
         Officer

								
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