APPENDIX A
Risk Assessment June 2013
Risk Management: Scenario
Risk No. |
Risk Type: |
Vulnerability: |
Risk: |
Consequences: |
1.
|
Strategic |
§ Ability to fulfill the objects of the Charity. |
§ Failure to fulfill objects. |
§ Intervention by the Charity Commission. § Forfeiture of lease to Cobtree Charity Trust Limited. |
2.
|
Governance |
§ Appropriateness of decisions. |
§ Conflict of interest with role of local authority. |
§ Intervention by the Charity Commission. § Forfeiture of lease to Cobtree Charity Trust Limited. |
3.
|
Operational |
§ Contractor(s) performance of services. |
§ Contractor defaults on the contract. § Inadequate staff resources. § Major breach of safety regulations/site not safe to allow public access. § Reduced income from golf course. |
§ Reduced visitor numbers. § Claims for compensation. § Long term damage to course. § Inability to maintain levels of service. |
4.
|
Financial |
§ Level of financial resources to maintain services. |
§ Reduced income from investments. § Adequacy of monitoring procedures. § Inability to pay back reserves. |
§ Reduced investment in buildings and infrastructure. § Reduced endowment fund.
|
5.
|
External |
§ Public perception of service provision. § Climatic conditions. |
§ Poor or inappropriate publicity. § Extreme conditions leading to loss of play. |
§ Reduced visitor numbers and revenue. § Increased vandalism and miss-use of facilities. |
6.
|
Legal |
§ Compliance with requirements of the Charity Commission. § Compliance with requirements of the lease. |
§
Conflict of interest with role of local
authority. § Failure to comply with requirements of lease. |
§ Intervention by the Charity Commission. § Forfeiture of lease to Cobtree Charity Trust Limited. § Claims for compensation. |
Risk Management – Risk Profile Assessment
The risks have been mapped against a typical appetite for risk. The Assessment has been prepared in the context of the Charity’s key objectives; with the risks, at this stage, having not been mitigated.
The vertical axis shows the likelihood of an occurrence:
A = very high; B = high; C = Significant; D = low; E = very Low and F = almost impossible
The horizontal axis shows impact of an occurrence:
I = catastrophic; II = critical; III = marginal and IV = negligible
L I K EL I H O O D |
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B |
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C |
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D |
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E |
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F |
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IV |
III |
II |
I |
IMPACT
Risk Management: Action Plan
Risk No. |
Description: |
Current Risk Score |
Target Risk Score |
1.
|
Failure to fulfill the objects of the Charity. |
E.I |
F.IV |
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
§ Requirement to consider objects when preparing reports for Committee.
|
§ Do not provide an audit trail. |
§ Specific reference to charitable objects in all reports. |
§
Cobtree Officer/ |
§ Reference included in all reports. |
§ Each meeting of the Committee. |
§ Committee meeting dates. |
Risk Management: Action Plan
Risk No. |
Description: |
Current Risk Score |
Target Risk Score |
2.
|
Conflict of interest with the role of the local authority. |
D.II |
F.III |
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
§ Specific Committee to consider Cobtree issues in detail.
|
§ Gives clear focus to Cobtree issues. |
§ Reinforce separation whenever possible. |
§
Cobtree Officer/ |
§ Separation acknowledged and reinforced. |
§ Annually. |
§ June/July. |
§ Memorandum prepared and distributed to all Members and Senior Officers.
|
§
Reminds all Members and Officers to bear in
mind special circumstances applying to Cobtree. |
§ Reinforce separation whenever possible. |
§
Cobtree Officer/ |
§ Separation acknowledged and reinforced. |
§ Annually. |
§ June/July. |
Risk Management: Action Plan
Risk No. |
Description: |
Current Risk Score |
Target Risk Score |
3a.
|
Contractor defaults on the contract. |
D.II |
E.III |
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
§ Regular review meetings to develop partnership working and early identification of problems.
|
§ Ensures sensitivity to, and understanding of, operating environment. § Ensure controls relate to all contracts, not just the golf course |
§ Continue with regular meetings. § Begin meetings with other contractors where necessary § Identify appropriate action to be taken in the course of a contractor defaulting. |
§
Contract monitoring Officer/ § Cobtree Officer to identify contractors or areas requiring additional monitoring and appropriate actions |
§ Contractor performing to contract specification profitably. |
§ Quarterly. |
§ January, April, July and October. |
Risk Management: Action Plan
Risk No. |
Description: |
Current Risk Score |
Target Risk Score |
3b
|
Inadequate staff resources provided by contractor. |
D.II |
E.III |
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
§ Regular review meetings to develop positive working relationship and early identification of problems.
|
§ Ensures sensitivity to, and understanding of, operating environment. |
§ Continue with regular meetings. |
§
Contract monitoring Officer/ § Cobtree Officer |
§ Contractors staffing levels to required standard to meet customer expectations. § Ensuring management plan objectives are met. |
§ Quarterly. |
§ January, April, July and October. |
Risk Management: Action Plan
Risk No. |
Description: |
Current Risk Score |
Target Risk Score |
3c.
|
Major breach in safety regulations site or area not safe to allow public access. |
D.II |
F.II |
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
§ Regular meetings to monitor contractor performance.
|
§
Safety concerns discussed during partnership
meetings. |
§
Reinforce safety concerns at partnership
meetings. |
§
Contract Monitoring Officers/ Partnership
Board. |
§ No breaches in safety occur. |
§ Quarterly. |
§ January, April, July and October. |
|
§
Individual risk assessments for all
activities. |
§ Regular review of risk assessments. |
§ Contractor/ Contract Monitoring Officers. |
§ Risks managed appropriately. |
§ Annually. |
§ March. |
§ Visual inspection by contract operatives as they carry out their duties. § Written weekly and monthly inspection of play equipment § Annual external insurance inspection for play equipment
|
§ Relies on contractor staff. § All equipment to meet BS standards and be independently inspected by Rospa inspector prior to use. |
§ Regular inspections by monitoring staff. § Operational concerns to be dealt with immediately by Parks Department § Incidents monitored and recorded. |
§ Cobtree officer/ Council Officers. |
§ No unsafe situations arise. |
§ Quarterly. |
§ January, April, July and October. |
Risk Management: Action Plan
Risk No. |
Description: |
Current Risk Score |
Target Risk Score |
3d.
|
Contractor receiving reduced income from Golf Course. |
D.II |
E.III |
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
§ Receive regular income reports from contractor.
|
§
Relies on contractor information. |
§ Regular income reports to meetings of the Partnership Board. |
§ Contract Monitoring Officer/ Partnership Board. |
§ Income maintained at projected levels. |
§ Quarterly. |
§ On-going. |
Risk No. |
Description: |
Current Risk Score |
Target Risk Score |
3e.
|
Contractor failing to renew Golf Course contract with minimal notice or offering reduced income to CMET. |
C.II |
E.III |
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
§ Undertake regular meetings with contractor.
|
§
Relies on contractor information. |
§ Regular information on contract renewal to be taken to meetings of the Partnership Board. § Planning for reduced finances to be included in future financial planning. |
§ Parks and Leisure Manager/Cobtree Officer. § Senior accountant. |
§ Contract renewed or sufficient notice given to enable re-tender. § Financial planning to ensure reduced income will not have a significant effect on the charity. § Maximization of other income to mitigate against risk. |
§ Quarterly. |
§ On-going. |
Risk No. |
Description: |
Current Risk Score |
Target Risk Score |
3f.
|
Continuum Museum of Kent Life ceases to operate on behalf of Museum of Kent Life Trust and Kent County Council. |
B.II |
D.III |
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
§ Ongoing Liaison with KCC and Continuum MKL.
|
§ Relies on third parties to provide and negotiate on a service. §
Collapse of existing leases will result in
return of the land asset to CMET with no operator. |
§ Ongoing discussions. § Plan way forward should discussions fail. |
§ Assistant Director of Planning Change and the Environment. § Parks and Leisure Manager. § Cobtree Officer § Senior Solicitor and Senior accountant |
§ Any change of operator is managed in such a way as to not put the charity at risk. |
§ Quarterly. |
§ Quarterly. |
Risk Management: Action Plan
Risk No. |
Description: |
Current Risk Score |
Target Risk Score |
4a.
|
Reduced income from investments. |
E.III |
F.IV |
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
§ Investments with Chari-Fund.
|
§ Low risk option. |
§ Monitor performance of Fund. |
§ Corporate Finance Officer. |
§ Good return on investments. |
§ Annually. |
§ March. |
Risk Management: Action Plan
Risk No. |
Description: |
Current Risk Score |
Target Risk Score |
4b.
|
Adequacy of monitoring procedures. |
C.II |
E.IV |
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
§ Regular monitoring of service standards and audit of customer survey responses.
|
§ Service standards maintained as per the contract. |
§ Balance monitoring effort to level of risk. |
§
Contract monitoring Officer/ |
§ Required customer satisfaction scores. |
§ Quarterly. |
§ On-going. |
Risk Management: Action Plan
Risk No. |
Description: |
Current Risk Score |
Target Risk Score |
4c.
|
Tenants defaulting on rental payments |
E.III |
F.IV |
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
§ Legally binding lease agreement permitting legal action to be taken if arrears accrue.
|
§ Fully drafted lease |
§ Monitor rental income receipts. |
§ Corporate Finance and Property and procurement Officers. |
§ Rent paid up to date |
§ Quarterly. |
§ Jan 1st, April 1st, July 1st,October 1st |
Risk Management: Action Plan
Risk No. |
Description: |
Current Risk Score |
Target Risk Score |
5a.
|
Poor or inappropriate publicity. |
D.III |
F.IV |
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
§ Newsletters are checked by the Cobtree Officer and the Communications team before going out. § Newspaper articles are monitored by the communications team.
|
§ Publicity is managed where necessary. |
§ Regular reporting of any known incidents or unwanted activities.
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§ Contractor operatives/ contract monitoring officer/ Cobtree Officer. |
§ No negative reports in the press or media. § Dealing with incidents as quickly as possible. |
§ When required. |
§ On-going. |
Risk Management: Action Plan
Risk No. |
Description: |
Current Risk Score |
Target Risk Score |
5b.
|
Extreme climatic conditions. |
B.II |
D.III |
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
§
Golf course closure procedure. |
§
Minimises unnecessary wear and tear of greens
and tees. |
§ On-going review in response to anticipated threat. |
§ Contractor/ Contract Monitoring Officer. |
§ Minimal impact on course playability. |
§ On-going. |
§ On-going. |
§ Enhanced maintenance operations.
|
§
Minimizes unnecessary wear and tear of greens
and tees and park. |
§ On-going review in response to anticipated threat. |
§ Contractor/ Contract Monitoring Officer. |
§ Minimal impact on course playability and park usage. |
§ On-going. |
§ On-going. |
Risk Management: Action Plan
Risk No. |
Description: |
Current Risk Score |
Target Risk Score |
6a.
|
Conflict of interest with role of local authority. |
C.II |
F.IV |
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
§ Separate Committee to consider items in detail. |
§
Ensures a clear focus on Charity issues.
|
§
Need to reinforce to both Members and Officers
the clear distinction between local authority and Charity issues. |
§ Cobtree Officer/Senior Solicitor/ Committee Members. |
§ No blurring between the respective roles of the Council acting as local authority and as Charity. |
§ On-going. |
On-going. |
§
Appointment of Cobtree Officer. |
§ Provides clear separation of officer roles. |
§ Reinforce independency of role. |
§ Committee. |
§ No blurring between the respective roles of the Council acting as local authority and as Charity. |
§ Annually |
December. |
Risk Management: Action Plan
Risk No. |
Description: |
Current Risk Score |
Target Risk Score |
6b.
|
Failure to comply with the requirements of the lease. |
E.II |
F.IV |
Controls already in place |
Adequacy of controls |
Required action |
Responsibility |
Critical success factors |
Review period |
Key dates |
§ Lease requirements included as appropriate in reports.
|
§ Gives focus to property matters. |
§ Review of Asset Management Plan. |
§ Cobtree Officer § Contract monitoring officer § Property section. |
§ Compliance with requirements of lease. |
§ Annual. |
§ July. |