POLICY
- Introduction
1.1. Bideford Town Council has adopted this risk management policy in accordance with guidance set
out in Governance and Accountability for Local Councils – a Practitioners’ Guide (England) issued
by the Joint Practitioners Advisory Group (JPAG) and also to give effect to the Health and Safety at
Work Act 1974.
1.2. This document sets out the:
- Town Council’s Risk Management Policy
- Objectives of Risk Management
- Types of Risk
- Roles and responsibilities
- Risk Management process
- Approach to future monitoring
1.3. This policy aims to further develop risk management and raise its profile across the Town
Council by: - Integrating risk management into the culture of the organisation;
- Embedding risk management through the ownership and management of risk as part of
all decision making processes; - Managing risk in accordance with best practice.
- The Policy
2.1. Bideford Town Council recognises that it has a responsibility to manage risks effectively in order
to protect its employees, assets, liabilities and community against potential losses, to minimise
uncertainty in achieving its goals and objectives and to maximise its opportunities.
2.2. The Town Council is aware that some risks can never be eliminated fully and its strategy
provides a structured, systematic and focussed approach to managing risk.
2.3. Risk Management is an integral part of the Town Council’s management processes. - Objectives of Risk Management
3.1. The objectives of risk management are to:
- Identify, evaluate and manage the opportunities and risks to which the Town Council is
exposed, at strategic and operational level; - To protect physical assets, promote employee and public safety and maximise
resources; - Embed risk management into day to day management and working arrangements;
- Enable effective and safe delivery of services to local people and to minimise the risk
of significant failures - Enable the identification of opportunities and risks associated with the Council’s
budget options and business planning to ensure that opportunities and risks are
controlled; - Enable better, more informed decision making at all levels;
- Review, evaluate and implement issues identified from past experience;
- To promote good corporate governance;
3.2.It is the responsibility of all Members and staff to have regard for risk management whilst
carrying out their duties.
3.3.This Strategy will enable risks and opportunities to be identified, evaluated, controlled,
monitored and reported.
3.4.Seek assurances that action(s) are being taken on risk related issues identified by auditors and
inspectors.
- Types of Risk
4.1. In order to manage risk, the Council needs to know what risks it faces.
Identifying risks is therefore the first step in the risk management process.
4.2. The Council will identify the key risks to achieving its priorities and service objectives:
i. financial – loss of money;
ii. security – fraud, theft, embezzlement;
iii. property – damage to property;
iv. legal – breaking the law or being sued;
v. IT – failure of IT systems or misuse; and
vi. reputational – actions taken could harm the authority’s public reputation. - Roles and Responsibilities for Risk Management
5.1. All Members and staff of the Town Council are responsible for risk management.
5.2. All Members:
- Have collective responsibility in understanding the strategic risks which the Town
Council faces. - Ensure that all identified risks have been considered in decision making and
countermeasures and controls are defined. - Agree and publish a clear Risk Management Policy and oversee the effective
management of risks by the Town Clerk. - Monitor the effectiveness of the Town Council’s risk management arrangements by
reviewing any risk management reports to Council.
5.3. Town Clerk: - The lead officer for risk management and owner of the Risk Management Strategy.
- Has the responsibility to understand the strategic and operational risks that the Town
Council faces and to oversee the effective management of these risks by officers. - Lead on the corporate governance agenda which includes risk management and with
the Council’s Chair approve the Annual Governance Statement. - Ensure that risks are fully considered in all strategic decision making and that the Risk
Management Policy helps the Town Council to achieve its objectives and protection of
assets. - Provides advice as to the legality of policy and service delivery and update the Town
Council on the implications of new or revised legislation. - Assess and implement the Council’s insurance requirements.
- Assess the financial implications.
5.4. Staffing, Finance and General Purpose Committee: - Support the Town Clerk in all aspects of risk management.
- Understand the strategic and operational risks that the Town Council faces.
- Ensure that a structured and systematic approach is in place for the identification,
recording and reporting of risks and opportunities. - Ensure that risks are fully considered in all decision making and that the Risk
Management Strategy helps the Town Council to achieve its objectives and protection
of assets. - Assist in embedding a culture of risk management through the Town Council and
encourage appropriate training, including induction and refresher training for staff.
5.5. All Employees: - Understand their accountability for individual risk.
- Understand how they can enable continuous improvement of risk management.
- Understand that risk management and risk awareness are a key part of the
organisations culture. - Report systematically and promptly to the Town Clerk any perceived new risk or
failure of existing control measures. - Record areas of risk which fall directly within their day to day areas of control and
review in line with agreed target dates. - Provide a pro-active role in the reporting and assessing of physical risks in respect of
public, staff and property.
5.6. Role of Internal Audit: - Provide a scrutiny role by carrying out audits to provide independent assurance to
Members, via the Internal Auditor’s annual audit plan and post audit report that the
necessary risk management systems are in place.
- The Risk Management Process
6.1. The process of risk management is straight forward and involves a number of key steps which
are outlined below. - Step 1: Identification of Risks
7.1. The Town Clerk is responsible for identifying and recording any risks. Identification will
be either via a formal process of planned inspections or ad hoc requests or risks being
noted through everyday working situations.
7.2. When changes to working arrangements, new initiatives, events or projects are to be
undertaken the Clerk will seek to identify any risks early in the planning process and prior to
implementation.
7.3. Each risk should be described and set out on a risk assessment form.
7.4. All risks identified must be recorded on the risk register. - Step 2: Evaluation of Risks
8.1. On identification of a risk the Clerk will assign a risk level by reference to the risk matrix.
8.2. The risk matrix considers the likelihood of a risk materialising and the impact it would have.
