Risk Management and Assessment Policy and Procedure

Transcription

1 Risk Management and Assessment Plicy and Prcedure Versin 1 Name f respnsible (ratifying) cmmittee The Cmmittee f Management: Funtingtn and District Village Hall Trust Date ratified 4/6/2015 Dcument Manager (jb title) Secretary: Funtingtn and District Village Hall Trust Date issued 4/6/2015 Review date Electrnic lcatin Related Prcedural Dcuments May 2018 (unless requirements change) Funtingtn District Cmmunity Centre website H&S plicy, Cde f Cnduct, Prtecting Children and Vulnerable Adults Plicy In the case f hard cpies f this plicy the cntent can nly be assured t be accurate n the date f issue marked n the dcument. Fr assurance that the mst up t date plicy is being used, staff shuld refer t the versin held n the Funtingtn District Cmmunity Centre website Versin 1 Issue Date 4/6/2015 Page 1 f 10

2 1. Intrductin Funtingtn and District Village Hall Trust (the Trust) is an unincrprated assciatin and is a registered charity: number Identifying and managing the pssible and prbable risks that the Trust may face ver time is a key part f effective gvernance. By managing risk effectively, the Trust can ensure that: Significant risks are knwn and mnitred, enabling the Cmmittee f Management (the Cmmittee) t make infrmed decisins and take timely actin; The Trust makes the mst f pprtunities and develps them with the cnfidence that any risks will be managed; Frward and strategic planning are imprved; and The value and safety f the services it prvides t the cmmunity are enhanced 2. Purpse This plicy explains the Trust s underlying apprach t risk management and describes the key aspects f the risk management prcess. 3. Scpe This plicy applies t all areas and activities f the Trust. 4. Respnsibilities The Cmmittee has verall respnsibility fr: prviding supprt and leadership fr the risk management prcess; reviewing the effectiveness f internal cntrls, including financial and rganisatinal; and reviewing the Trust risk register n a regular basis, t ensure that the Cmmittee receives adequate and apprpriate infrmatin and assurances relating t risks against the Trust s bjectives. All staff and vlunteers have a duty as part f their invlvement with the Trust t d everything they can t ensure that the plicy wrks in practice. 5. Prcess The management f risk is underpinned by the fllwing key cmpnents: The Risk Management Cycle Risk Identificatin Risk Assessment Risk Treatment Risk Review/Risk Register Review f Effectiveness Risk Management Cycle Risk Identificatin: a risk can be identified thrugh a variety f external and internal surces and can be practive r reactive. Fr example, By simply walking arund the building and lking afresh at what culd reasnably be expected t cause harm e.g. new equipment Versin 1 Issue Date 4/6/2015 Page 2 f 10

3 Risk assessments Cnsultatin with staff, vlunteers and users Cmplaints Audit Prgress against aims and bjectives Any mandatry r statutry requirements Risk Assessment A risk assessment is n mre than a careful examinatin f what culd cause harm t visitrs, cntractrs and thers, r affect the Trust s reputatin. This will enable the Cmmittee t weigh up whether there are enugh precautins (cntrls) in place, r mre shuld be dne t ensure that n ne gets hurt and/r the Trust s reputatin is nt affected. The purpse f a risk assessment is t prvide a systematic and methdical tl fr identifying risks assciated with legal, mral and financial duties, remving them where pssible, r therwise adpting all the cntrl measures and precautins that are reasnable in the circumstances. Althugh the Trust has a standard risk assessment template, there are n fixed rules abut hw the assessment shuld be carried ut: it will depend n the nature f the undertaking and the type and extent f the hazards and risks. Hwever, the prcess shuld be practical, systematic and cver risks that can be reasnably freseeable. Fr small undertakings with few r simple hazards, a suitable risk assessment can be a straightfrward prcess based n persnal judgment, experience and knwledge. In larger r mre cmplex cases, specialist knwledge may be required. Whatever the type f risk assessment, it shuld be suitable and sufficiently detailed t determine whether adequate cntrl has been achieved. Cnsider wh r what is at risk. D nt frget: Yung wrkers, lne wrkers, new and expectant mthers etc; Cleaners, visitrs, cntractrs, maintenance wrkers, vlunteers; and The Trust s reputatin r financial psitin. Once a risk has been identified a risk assessment (Appendix A) shuld be cmpleted and the fllwing recrded: The cnsequence(s) n a scale f 1 5, shuld the risk becme a reality The likelihd f the risk ccurring, n a scale f 1 5 The current cntrl measures. This will determine what mre will need t be dne t reduce r eliminate the risk. Once the risk assessment has been undertaken an actin plan t address the identified prblems must be cmpleted. Further guidance n assessing and recrding risks is at: Appendix B: Guidance fr assessing risks Appendix C: Guidance n terminlgy used in cmpletin f risk assessment and actin plan Appendix D: Ptential risks, their impact and pssible cntrls: NB: these are examples nly and shuld nt be cnsidered as actual risks affecting the Trust. Risk Treatment An actin plan is agreed and implemented t manage and cntrl the risk, using the fllwing appraches. Versin 1 Issue Date 4/6/2015 Page 3 f 10

4 Avidance: undertaking the activity in a different way t prevent the risk ccurring; Reductin: taking actin t reduce the risk; Transfer: mvement f the risk t anther individual / rganisatin; and Acceptance: all f the abve ptins are nt pssible and a cntingency plan is develped. When creating the actin plan, first ask whether all the things the law requires have been dne. Then, whether generally accepted standards are in place. Hwever, dn t stp there, because the law als states that whatever is reasnably practicable shuld be dne. The real aim is t eliminate risks altgether. Hwever, it is recgnised that in sme instances this is nt pssible and in such situatins it is essential that risks are reduced t the lwest level by adding t yur cntrls as necessary. In drawing up the actin plan, it must be realistic. S 1) Can the risk/hazard be remved altgether? 2) If nt, what cntrls need t be in place s that the cnsequence (utcme), shuld the risk be realised and the likelihd (chance) f the risk ccurring can be eliminated r reduced as far as is reasnably practicable? 3) When are the additinal cntrls likely t becme effective (target date)? 4) What assurance will be available as t whether the cntrls are wrking? 5) What is the predicted (residual) risk rating likely t be, nce all the cntrls are in place? 6) Wh will mnitr implementatin f the actin plan? Risk Review/Risk Register Whilst sme risks, r aspects f risks, can be addressed immediately, there are ccasins when time is required t implement slutins. A Trust risk register has been develped t prvide an nging lg f thse risks which require further actin and t mnitr implementatin f the actin plans necessary fr mitigatin. All risks n the risk register are mnitred by the Cmmittee. As a minimum, the Cmmittee reviews the register and the assciated actin plans n a quarterly basis. 6. Acceptable Risk The Trust acknwledges that sme f its activities may, unless prperly cntrlled, create rganisatinal risks and/r risks t visitrs, wrkers and thers. The Trust will, therefre, make all effrts t eliminate risk r ensure that risks are cntained and cntrlled s that they are as lw as pssible. Hwever, it is nt always pssible t reduce an identified risk cmpletely and it may be necessary t make judgments abut achieving the crrect balance between benefit and risk. A balance needs t be struck between the practicalities and/r cst f managing the risk and the benefits t be gained. A decisin must therefre be made regarding the level at which a risk wuld be deemed acceptable t tlerate. A risk is cnsidered acceptable when there are adequate measures in place and the risk has been managed as far as cnsidered t be reasnably practicable. Where a risk has been reduced t the pint where the practicalities and/r cst f further cntrls t reduce the risk utweigh the benefit they may prvide, it may nt be cnsidered reasnably practicable t implement further cntrls. Hwever, where risk cntrls are available it is the duty f the Trust t demnstrate that the cst f implementatin utweighs the benefit r, that alternative crrective measures have been implemented, Risks requiring a cst benefit analysis will be discussed by the Cmmittee fr a decisin n acceptability and recrding f that decisin making prcess. Versin 1 Issue Date 4/6/2015 Page 4 f 10

5 7. Organisatinal Learning a) The Cmmittee will mnitr the risks n the risk register: as a minimum the risk register and assciated actin plans will be reviewed quarterly. b) Any required actins will be fed int the planning and management f services, as part f the Trust s self-evaluatin. Versin 1 Issue Date 4/6/2015 Page 5 f 10

6 Appendix A RISK ASSESSMENT AND ACTION PLAN (This infrmatin will be transferred t the Trust Risk Register t ensure a cmprehensive lg f risks and assciated actin plans is maintained) FUNTINGTON AND DISTRICT VILLAGE HALL TRUST TYPE (may be mre than ne type) E Envirnmental / External factrs Financial Gvernance Health and Safety Operatinal Other Risk scres are calculated by Cnsequence (C) x Likelihd (L) using the 5 x 5 matrix ID TYPE / SOURCE DATE OPENED RISK DESCRIPTION IMPACT ACTIVE CONTROLS ALREADY IN PLACE INITIAL RISK RATING (C X L) CURRENT RISK RATING (C X L) PREDICTED RESIDUAL RISK RATING (C x L) ACTION PLAN TO ACHIEVE PREDICTED (RESIDUAL) RISK RATING ASSURANCE MECHANISM / MONITORING Review Date On target Final target date fr mitigatin f risk RAG rated fr prgress Minr bstacle t achieving target Inability t achieve predicted target Review Date Target Date RESPONSIBLE LEAD Versin 1 Issue Date 4/6/2015 Page 1 f 10

7 Appendix B GUIDANCE FOR ASSESSING THE RISKS The risk matrix belw is simple t use and designed t assist yu in assessing risk in a cnsistent and systematic way: just fllw each step f the prcess Step 1: If the risk ccurred what are the likely cnsequences (C) t persn(s) r the Trust? Use the table belw t grade the cnsequence. Step 2: Lk at what is being assessed and ask the questin: What is the likelihd (L) f harm t persns r the Trust, given the current cntrls/precautins in place? Use the table belw t grade the likelihd. LIKELIHOOD DESCRIPTOR DESCRIPTION 1 Rare Nt expected t happen again except nly in exceptinal circumstances e.g. nce a decade, r a prbability f <1% 2 Unlikely May re ccur infrequently, but it is a pssibility e.g. nce a year r a prbability f 1-5% 3 Pssible May re ccur e.g. nce a mnth, r a prbability f 6-20% 4 Likely Will prbably re ccur e.g. weekly r a prbability f 21-50% 5 Highly likely Likely t re ccur n many ccasins, is a cnstant threat e.g. at least nce a day r prbability f >50%. Mre likely t ccur than nt. Step 3: T btain the risk rating, multiply the cnsequence x the likelihd CONSEQUENCE LIKELIHOOD 1 Insignificant 2 Minr 3 Mderate 4 Majr 5 Extreme 1 Rare Nt expected t ccur 2 Unlikely Occurs infrequently 3 Pssible Once r twice a year 4 Likely Hazard will ccur but is nt persistent. There are n issues f custm and practice. 5 Certain Cnstant threat is custm and practice 1 LOW 2 LOW 3 LOW LOW LOW SIGNIFICANT Lw (1 3) High Risk (8 12) Mderate Risk (4 6) Extreme Risk (15 25) Step 4: Risk Level and Actin Required. Versin 1 Issue Date 4/6/2015 Page 1 f 10

8 Scre Risk Preventative Measures t be Taken r Planned 1-3 Lw Risk manage by rutine prcedure. Implement any actin that will eliminate r cntrl the risk. 4-6 Mderate Risk An actin plan must be devised, agreed and implemented t reduce r eliminate the risk High Risk An actin plan must be devised, agreed and implemented t reduce, cntrl r eliminate the risk Extreme Risk Immediate actin required. An actin plan must be cmmenced immediately t reduce, cntrl r eliminate the risk APPENDIX C Versin 1 Issue Date 4/6/2015 Page 2 f 10

9 GUIDANCE ON TERMINOLOGY USED IN COMPLETION OF RISK ASSESSMENT AND ACTION PLAN SECTION COMMENTS ID Type Date Risk Descriptin Cnsequence Likelihd Active Cntrls Initial Risk Rating Current Risk Rating Actin Plan Mnitring/ Assurance Predicted Residual Risk Target Date Respnsible Lead An ID which allws the risk t be uniquely identified: this will inserted nce the risk is placed n the register. This is utlined n the tp f the risk assessment frm. The date the risk was first placed nt the Register. A statement that prvides a brief, unambiguus and wrkable descriptin, which enables the risk t be clearly understd, analysed and cntrlled. This is the cnsequence shuld the risk be realized. This is the chance f the risk being realized. Details f any actual cntrls already in place i.e. factrs that are exerting material influence ver the risk s likelihd and impact: the risk rating. An effective cntrl is ne that is prperly designed and delivers the intended bjective / mitigates the risk. The rating determined by likelihd x cnsequence using the 5 x 5 matrix. Cnsequence: the impact shuld the risk ccur - this scre shuld take int accunt the existing cntrls. Likelihd: the likelihd f the risk happening - this scre shuld take int accunt the existing cntrls. This will initially be the same as the initial risk rating. As time prgresses, the current risk rating shuld decrease (if yur cntrls are apprpriate and effective) and mve clser t the predicted residual risk rating. Further actin(s) required t be taken in rder t eliminate, mitigate r cntrl the risk. Hw the cntrls in place will be mnitred t ensure they are effective in managing the risk. Plus Evidence that shws risks are being reasnably managed. The risk rating after the further actins have been implemented: expressed as the prduct f the likelihd x the cnsequence. Realistic date by which yu cnsider the prpsed actins will be cmpleted. The title f the persn wh: Understands the risk and mnitrs it thrugh its lifetime Ensures the apprpriate cntrls are enacted Reprts n the risk whenever required t d s APPENDIX D Versin 1 Issue Date 4/6/2015 Page 3 f 10

10 EXAMPLES OF POTENTIAL RISKS, THEIR IMPACT AND POSSIBLE CONTROLS POTENTIAL RISK DESCRIPTION POTENTIAL IMPACT CONTROLS Envirnmental / External Factrs Public perceptin Adverse Publicity Gvernment Plicy Financial Risks Cash flw sensitivities Fraud r errr GOVERNANCE RISKS The Trust lacks directin, strategy and frward planning Management Cmmittee lacks relevant skills r cmmitment Cnflict f interests Impact n vluntary incme Ability t access grants Lss f reputatin Lss f users Impact n mrale Impact f general legislatin r regulatin f activities undertaken Inability t meet cmmitments Impact n peratinal activities Financial lss Reputatinal risk Regulatry actin Impact n funding The Trust drifts with n clear bjectives Issues are addressed piecemeal with n strategic reference Financial management difficulties Lss f reputatin Pr decisin making Cmmittee cannt perate effectively as a strategic bdy Trust unable t pursue its wn interests and agenda Decisins may nt be based n relevant cnsideratins Impact n reputatin HEALTH AND SAFETY RISKS Pr cleaning f facility Slips, trips falls Impact n reputatin Cmmunicate with supprters Ensure gd quality reprting n Trust activities Implement public relatins prcedures Implement cmplaints prcedures Agree a crisis management strategy including cnsistency f key messages Agree a nminated spkespersn Mnitr prpsed legal and regulatry changes Identify majr sensitivities Ensure adequate cash flw prjectins Review financial cntrls Set authrisatin limits Agree whistleblwing and fraud plicy Review security f assets Create a strategic plan, which sets ut key aims, bjectives and plicies Mnitr financial and peratinal perfrmance Review and agree skills required Review and agree recruitment prcess Agree prtcl fr disclsure f ptential cnflicts f interest Implement prcedures fr standing dwn n certain decisins Review current cleaning practices and frequency Review cleaning cmpetencies OPERATIONAL RISKS User dissatisfactin Capacity and use f resurces Security f assets OTHER RISKS Anything that des nt fit int abve categries!! Cmplaints Lss f reputatin Under-utilised building Equipment bslescence Lss r damage Theft f assets Implement rbust cmplaints prcedure Benchmark services Implement cmplaints review prcedures Agree repair and maintenance Implement public relatins prcedures Cmmunicate with supprters Review security arrangements Create asset register and inspectin prgramme Versin 1 Issue Date 4/6/2015 Page 4 f 10