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Risk assessment of SDF proposal
Name of project: A new university for the arts in Cornwall
Gross risk to HEFCE H/M/L Justification and comments
Overall gross risk H There are quite significant risks for UCF and, more particularly, DCA if the merger were not to proceed, there are important potential gains for them academically and for the Cornish economy if the merger proceeds successfully.
Net risk to HEFCE
Reputation
H/M/L
M/H
2 Institution’s own risks M/H
Justification and comments
There is a real reputational risk to
HEFCE if the funding cannot be found to enable the project to go ahead. The only other option currently being considered is managed closure which could lead to some public embarrassment and costs for HEFCE. Questions would also be asked of MPs and Board members.
If the project is funded, the Regional
Team have confidence in the abilities of the institutions to complete the project. UCF/DCA have a good track record of delivering projects on time and to budget. The Regional Team has been closely involved in the development of this project and believe that if any issues should arise that we would be made aware immediately.
There are significant risks to the two institutions if the project fails. Some steps have been put in place by way of
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3 Institutional sustainability M/H mitigation.
Both DCA and UCF have small management teams which are already quite stretched. Pre-merger funding of
£1.28m has been agreed to support work leading up to the merger. This work includes project management to support the senior management teams.
Furthermore, DCA and UCF have shown an appetite and aptitude to working collaboratively. There has already been a large amount of integration at management and academic level.
UCF is leading the project and has prepared a comprehensive risk assessment for the merger. It has substantial experience of managing significant projects so it is expected that the project will be well managed. DCA is small and so the project will be a rather greater challenge, although, so far, it has managed well. The greatest risk, however, is that sufficient funding will not become available and, to a fair extent, this is out of the hands of the two institutions, although HEFCE is able to exercise some influence.
If the merger is successful, DCA and UCF as an entity should be sustainable and the risk to HEFCE would be reasonably low.
On the other hand, if the merger were not to proceed, DCA would almost certainly fail, as there is no feasible alternative to merger with UCF available at present, and this would be likely to involve HEFCE in further activity and cost in winding up DCA’s activity. In the same circumstance UCF might be weakened to a degree but not hugely.
In the interim period, there is a risk to
DCA’s sustainability in terms of staff and student retention. There are currently also some questions about the management arrangements at DCA in the interim.
Weakness in this area could threaten
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4 Strategic risk M
5 Overall impact of funding M
6 Other (by exception) M
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DCA’s sustainability and ability to maintain the current size and composition of students and staff within the College.
As demonstrated in the previous categories, if this project were to fail it would have a big impact on the two
Colleges. Although this is a large project for the two institutions, its size means that the impact on HEFCE’s strategic aims is considered to be low.
As outlined in section 1, there are some political risks for HEFCE but these shouldn’t impact directly on HEFCE policy.
If the project is fully funded, there should be minimal risk to HEFCE. Falmouth has significant experience of delivering large
–scale building projects on time and budget. Both institutions have a good track record of institutional management
– the problems at Dartington are not related to the institution’s management but to factors outside their control e.g. ownership of assets by the Dartington
Hall Trust.
The real impact of HEFCE’s funding will be to encourage other organisations to complete the funding package. There is a risk that if HEFCE were not to invest in this project, this would send a signal to other funders about the viability of the project. Essentially, the project would fail.
The EU funding package necessitates national government match funding,
HEFCE funding constitutes part of this package.
The overriding risks to this project are those surrounding EU convergence and
RDA funding. If this source of funding cannot be confirmed at the right rate and

Overall net risk M/H within the right timescale, the project will fail. This will have an immediate effect on both institutions leading most probably to the closure of Dartington College of Arts.
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