Risk management

Risk can be defined as the possibility of something happening, or not happening, that would have an impact on an organisation’s ability to meet its strategic or operational objectives.

The council understands the importance of effective risk management and has a risk management strategy and annual risk management process.

The advantages of effective risk management are:

• helping to meet strategic objectives and corporate priorities
• enabling better decision making
• facilitating effective control of public funds
• promoting better corporate governance
• generating better value for money.

As part of the annual service planning cycle, managers review risks as part of a standard methodology commonly used in the public sector. The council’s management team regularly reviews strategic risks. Both of these activities include the development of risk mitigation actions designed to reduce the likelihood and/or consequences of adverse events occurring. By understanding risks, the council can be more confident about undertaking ventures which produce larger gains, such as jointly providing services with other councils.

The council’s approach to risk management is overseen by the Audit and Corporate Governance Committee, by means of internal audits of risk management, and by the Audit Commission’s annual use of resources assessment.

The risk management process, and progress made in reducing risks to which the council is exposed, is described in more detail in the quick links to the right.