RISK MANAGEMENT POLICY
In achieving the challenging objectives which underpin its vision, The Manchester College
must overcome a number of risks. Many of these risks arise from within the college,
although some are externally generated. It is therefore crucial that in the case of identified
risks that pose a significant threat to the college, an agreed strategy is in place to mitigate
any potential damage that might be caused.
This document aims to outline the approach to Risk Management being taken by The
Manchester College, and forms a key part of the College’s control and corporate governance
arrangements.
1.
Key Principles underlying The Manchester College’s approach to Risk
Management
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The Board of Governors, has responsibility for overseeing Risk Management
within the College.
The Principalship is charged by the Board of Governors with the responsibility for
implementing policies and practices which identify, reduce and manage risks and
for reporting on progress and action taken when appropriate.
A Risk Management Group led by a member of the Principalship, will undertake
detailed risk analysis and in respect of significant risks, the Risk Management
Group have established a Risk Opportunity Register and Action Plans,
appropriately referenced to the college’s vision statement, which ensures that
each identified risk is reduced and managed.
A Risk Champion appointed from within the Risk Management Group will
maintain the Risk Opportunity Register and Action Plans and will produce reports
to the Board of Governors.
All College Managers will be briefed on the content of the Risk Opportunity
Register and Action Plans and on their own responsibilities. Each risk or sub risk
relating to the delivery of the college vision statement will be allocated “a lead risk
owner” and will be annotated as required.
Each risk or sub risk will also be allocated a “risk score” based on the “Probability
of the Risk Occurring” against “the Severity of the Risk”. The total score will be
used to indicate where the Principalship, should focus their priorities for remedial
action. The risk score will also be used to indicate what is at stake to the
achievement of the college vision, if a risk is allowed go unchecked or poorly
managed.
It is anticipated that this approach will help focus attention on the importance of
effective management as Managers will be held responsible for encouraging
good risk management practice within their departments and teams.
As a matter of course, the College will adopt a prudent and conservative
approach to the financial and non-financial implications of risks and for risks
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identified as significant or important, will establish monitoring processes, such
that early warning of adverse developments will be available as a matter of
routine.
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2.
The Risk Opportunity Register and Action Plans will be updated annually
following a complete review and at other times if adverse developments make it
necessary.
Roles and Responsibilities
a) The Audit Committee of the Board of Governors
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Will set the tone and influence the culture of risk management within the College.
Will determine the level of risk which can be regarded as acceptable for the
College as a whole and on relevant individual issues.
Will approve major decisions affecting the College’s risk profile, as advised by the
Principal.
Will monitor the management of significant risks and satisfy itself that less
significant risks are being actively and effectively managed.
Will approve the Annual Review of the Risk Opportunity Register and Action
Plans prepared by the Risk Management Group and any reports on progress
against the Action Plans.
b) The Risk Management Group
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Will have overall responsibility for the administration and implementation of the
risk management process and will meet at least three times per year to record
progress and monitor developments.
Will identify and evaluate the risks faced by the College and produce an annual
report to be presented to the Board of Governors in the first term of the next
academic year.
Will ensure that adequate Action Plans are developed for significant risks,
monitor progress made by management and produce reports on the progress to
the Audit Committee of the Board of Governors.
Will produce a strategy to evidence that a risk management culture is firmly
embedded within the college. This strategy will aim to highlight and maintain to all
staff, an awareness of risk management and the benefits of risk management to
the achievement of college’s vision as staff carry out their day to day duties.
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3.
Will report the findings of any auditors or inspectors in respect of Risk
Management to the Audit Committee of the Board of Governors.
Risk Management as Part of the System of Internal Control
The College’s system of internal control will incorporate risk management and
include a number of elements which together will facilitate the effective and efficient
operation of the College. These elements are:
a) Policies and Procedures
Attached to significant risks are a series of policies that underpin the internal control
process. Where appropriate the policies are supported by written procedures which
will be adopted by all concerned.
The policies are set by the Principalship and approved by the Board of Governors
and together with any procedures which apply, will be communicated by
management to all staff.
b) Reporting
Detailed risk management reports will be presented to management team meetings
when applicable. This information will subsequently be cascaded to staff at team
meetings and reviewed at site meetings. Any decisions that are required to remedy
adverse developments will be taken at these meetings, subject to approval by the
Principalship. The college Intranet will also be used as part of this process to allow
staff to access relevant documents.
c) Business Planning and Budgeting
Programme Planning Documentation (PPD) form the basis of the production of
business plans and budgets for all teams within the College. Progress towards PPD
targets will be monitored regularly and adverse developments reported to the
Principalship.
d) Action Plans for Significant Risks
Risk Opportunity Register and Action Plans compiled by the Risk Management
Group will form the basis for the reduction, management and monitoring of risks
significant to the College. These will be formally appraised annually but monitored
on an ongoing basis.
Heads of Department will use the Risk Opportunity Register and Action Plans as a
basis for identifying management priorities within their departments.
e) Audit Committee
The Audit Committee will receive reports from the Risk Management Group on behalf
of the Board of Governors and advise the Board of Governors on the effectiveness of
the internal control and risk management systems.
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f) Internal and External Audit
Internal auditors will monitor the annual review of risk management and the
effectiveness of internal control systems in relation to it. External auditors will
provide feedback to the Audit Committee on the operation of internal financial
controls reviewed as part of the annual audit.
g) Membership of the Risk Management Group
Core Members are to be members of the Principalship and other key staff as
identified below. There is provision to allow additional key managers to be invited for
specific items identified within the Risk Opportunity Register and Action Plans.
The Risk Management Group
Name
Title/Role
Annette Baker
Anne Bourner
Jack Carney
Paul Carter
Clerk to the Group
Vice Principal-14-19 Learners
Deputy Principal
Vice Principal-Developments
and Partnerships
Vice Principal-Offender Learning
Vice Principal-14-19 Learners
Vice Principal (Finance Director)
Risk Champion
Peter Cox
Teresa Farran
Andrew Harrison
Chris McConnell
Julie Milad
Marina Parha
David Patterson
Peter Wharton
Philip Whelan
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Vice Principal (Support
Services, Information and
Administration)
Vice Principal-Curriculum
Progression
Vice Principal (Post 19 Learners)
Senior Finance Assistant
Director of Property
Telephone Ext or
Number
3615
3338
2229
3579
2244
3301
3376
2224
3906
6883
6218
2415
2445
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