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HONITON TOWN COUNCIL

Business Risk Register


2015
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Processes
In line with best practice, the Council has adopted a seven-step process to support the
implementation of risk management and help maintain impetus.

Steps

1 Identifying Risks will be identified during the service delivery planning process
risk and cross-referenced, where possible, to key tasks and to the
achievement of corporate objectives.

2 Analysing risk Risks will be assessed against probability and impact of the
identified risks using the Council’s approved evaluation criteria to
give a risk score.

3 Profiling risk The evaluation exercise will result in a risk score from which
significant risks can be established.

4 Prioritising Risks will be entered in the risk register detailing the inherent risk
action score, existing controls and residual risk score.

5 Determining Further actions required to reduce the threat of the risk occurring or
action minimise its impact will be stated in the risk register. Target dates
and assignment of responsibility will also be stated.

6 Controlling The specified actions will be carried out as stated in the risk register.
risk

7 Monitoring The risk management working group will keep the risk register under
review and progress against further actions identified will be
monitored quarterly. The register will be updated as actions are
achieved and risk scores amended as appropriate. The identification
of risks should be a continual process and risks emerging throughout
the year should be evaluated and, where necessary, added to the
register.
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Risk Management Matrix

Assessment Impact
Community/
Financial Reputation Stakeholder
Customers
(F) (D1) (D2)
(D3)
Minimal
impact or
Negligible

Minimal impact disruption to


Minimal loss of on stakeholder community
1 Under £500
public trust business contained
arrangements within a
community
area
Minor impact
to community
Slight loss of
Minor impact and
trust with no
Minor

on stakeholder community
2 £501 _ £1000 lasting impact.
business dissatisfaction.
Little adverse
arrangements Limited
publicity
service
disruption.
Moderate loss Moderate
of trust that impact to
Moderate

receives Moderate community


significant disruption to and customer
3 £1001 _ £5000
adverse stakeholder’s dissatisfaction.
publicity locally arrangements. Moderate
with no lasting service
impact disruption.
Significant
Significant loss
Significant service
of trust and
disruption to disruption and
Major

receives local
4 £5001 _ £10000 and opposition community
media attention.
from opposition.
Potential for
stakeholders Threat of legal
lasting impact
action.
Major service
Significant loss Major
disruption.
of trust and disruption to
Catastrophic

Significant
receives and strong
community
national media opposition from
5 Over £10000 opposition.
attention with stakeholders
Legal action.
potential for who represent
Long-term
persisting vulnerable
public
impact. clients
memory.
4

Safety (S) Health (H) Environmental (E)


Negligible

First aid case,


with no lost time. Mild health effect for Minimal environmental
1
Negligible safety short period. impact.
impact

Minor injury
Local impact requiring
(worker or third Reversible health
Minor

response, but from which


2 party). effect.
there is a natural
Medical treatment Minor illness.
recovery.
beyond first aid.

Irreversible health
Moderate

effect for example Moderate environmental


Single major loss of hearing. impact, requiring
3
injury, Serious illness from response to aid recovery.
which there is full Reportable to authorities.
recovery.

Multiple major Life shortening health Major environmental


injuries which effect. incident resulting in
Major

4 may result in Health effect causing significant impact


permanent significant irreversible requiring management
disabilities disabilities. by external authorities
Catastrophic

Extreme environmental
incident, resulting in
5 Death Death
irreversible long term or
widespread harm

Assessment Impact
5

Likelihood Ranges
Description Guidance Probability Range
Very remote probability that the event
1 Improbable 1%
would occur
Event may occur only in exceptional
2 Remote 1 – 10%
circumstances
3 Possible Event could occur at some time 11 - 50%
4 Probable Event should occur at some time 51 – 90%
Almost
5 Event will occur in most circumstances 90%
Certain

5 10 15 20 25
Impact

4 8 12 16 20

3 6 9 12 15

2 4 6 8 10

1 2 3 4 5

Likelihood

Red Risk: (20-25) Unacceptable risk. Reduce risk by mitigation. Transfer risk.

Amber Risk (12-16) Reduce risk by mitigation. Regularly review

Yellow Risk (8-10) Tolerate risk. Review control measures

Green Risk. (1-6) Acceptable Risk. Monitor risk.


.D. Risk/Event Cause Consequence/Impact D D D Mitigation Preventative Residual
S H E F L R
1 2 3 Actions Risk

Governance Risk (Overall Inherent Risk)


Inadequate
Financial
Loss of
arrangements.
community/stakeholder
confidence.
Poor
organisational
Adverse Reputation.
structures.
Negative Media
Poor
Attention.
understanding of
The risk is poor or
legal
inadequate
requirements
Poor Audit reports INHERENT RISK
Governance
Loss of service provision.
Poor decision
making
Financial Investigations.
Poor forward
Breach of legislative
and contingency
requirements.
planning.
Legal Actions.
Poor operational
management

Risk Assessment Key

S = Safety H = Health E = Environment D1 = Reputation impact D2 = Stakeholder impact D3 = Community/Customer impact F = Financial Impact L= Likelihood of event occurring R = Risk Rating
.D. Risk/Event Cause Consequence/Impact D D D Mitigation Preventative Residual
S H E F L R
1 2 3 Actions Risk

Financial Risks
Loss of
community/stakeholder
confidence.

Adverse Reputation.
The risk is poor or
Poor financial Negative Media
inadequate financial
procedures. Attention.
INHERENT RISK
management
Poor Audit reports

Loss of service provision.

Financial Investigations

Loss of
community/stakeholder
confidence.
The risk is the
Adverse Reputation. Set appropriate Precept Unexpected
101 precept is not
Poor forward Manage Accurate Budget finance
adequate to meet
planning Negative Media Forward Planning. requirements
council
Attention. (see risk 106)
requirements.
Poor Audit reports

Loss of service provision


The risk is poor Poor Audit reports. Financial Regulations in
Inadequate
102 financial record placed and reviewed
Records
keeping Financial Irregularities annually by Finance

Risk Assessment Key

S = Safety H = Health E = Environment D1 = Reputation impact D2 = Stakeholder impact D3 = Community/Customer impact F = Financial Impact L= Likelihood of event occurring R = Risk Rating
.D. Risk/Event Cause Consequence/Impact D D D Mitigation Preventative Residual
S H E F L R
1 2 3 Actions Risk

8
committee and ratified by
full council.

Financial data recorded All Members of


using Sage by RFO Town Council
to have an
understanding
of the
recording
system.

Details and procedures


The risk is poor Inadequate Poor Audit reports contained in the Financial Review
103
banking methods procedures Regulation. Annually

Expenditure above
The risk is the mis- Loss of financial asset.
104 Fraud £20,000 requires
use of council funds
authorisation by full council
The risk is Income Down turn in
streams fail to meet service
expected budget requirements
requirements. Impact on council See Risk 301
105 Prudent Budgeting
Unrealistic reserves. &302
(Town market) target budget

(Public car park)


Loss of
community/stakeholder
confidence.
The risk is Poor precept
insufficient reserves management. Adverse Reputation. Adequate Insurance
106 are maintained to Prudent budgeting
meet unexpected Poor of forward Negative Media Sensible reserves
expenditure planning Attention.

Poor Audit reports

Risk Assessment Key

S = Safety H = Health E = Environment D1 = Reputation impact D2 = Stakeholder impact D3 = Community/Customer impact F = Financial Impact L= Likelihood of event occurring R = Risk Rating
.D. Risk/Event Cause Consequence/Impact D D D Mitigation Preventative Residual
S H E F L R
1 2 3 Actions Risk

9
Loss of service provision

Errors made by Impact on finances Reconciliation of bank


The risk is loss of Split reserves
bank. accounts conducted
107 council funds held for £85,000
quarterly by finance.
in Bank Accounts FCS
Collapse of bank committee.

Theft Sufficient Insurance to


The risk is the loss Review
108 Addition costs cover repair or
of council Assets Annually
Vandalism replacement of assets
The risk is non- Adverse Reputation.
Poor Financial
109 payment of regular Negative Media Prudent financing
Management
expenditure Attention.
The risk is
additional costs
110 See risk 106
incurred through
legal actions

Risk Assessment Key

S = Safety H = Health E = Environment D1 = Reputation impact D2 = Stakeholder impact D3 = Community/Customer impact F = Financial Impact L= Likelihood of event occurring R = Risk Rating
.D. Risk/Event Cause Consequence/Impact D D D Mitigation Preventative Residual
S H E F L R
1 2 3 Actions Risk

10
Compliance Risks
Loss of
community/stakeholder
confidence.

Adverse Reputation.
The risk is failing to
comply with Poor Negative Media
legislation and Management Attention.
5 5 5 4 5 5 5 5 25 INHERENT RISK
council policies
Legal Action

Fines

Imprisonment

Negative Media
Attention.
Review annually
Lack of council
The risk is failure to Broaden H&S to
knowledge and Legal Action Robust Health & safety
201 meet Health and encompass Car
understanding of Policy
Safety Regulations. Park and other
requirements Fines
HTC owned land
Imprisonment
Negative Media
Attention.
Review annually
Lack of council
The risk is failure to Broaden H&S to
knowledge and Legal Action Robust Health & safety
202 meet Fire encompass Car
understanding of Policy
Regulations Park and other
requirements Finds
HTC owned land
Imprisonment

Risk Assessment Key

S = Safety H = Health E = Environment D1 = Reputation impact D2 = Stakeholder impact D3 = Community/Customer impact F = Financial Impact L= Likelihood of event occurring R = Risk Rating
.D. Risk/Event Cause Consequence/Impact D D D Mitigation Preventative Residual
S H E F L R
1 2 3 Actions Risk

11
Negative Media
Attention.
Review annually
Lack of council
The risk is failure to Broaden H&S to
knowledge and Legal Action Robust Health & safety
203 meet Environmental
understanding of Policy
encompass Car
Regulations Park and other
requirements Fines
HTC owned land
Imprisonment
Loss of
community/stakeholder
confidence

Negative Media
Lack of council Attention. Train Councillors
The risk is failure to
knowledge and Training Policy on Governance &
204 meet Financial
understanding of Legal Action Training Plan Accountability
Regulations
requirements Act
Fines?

Imprisonment

Loss of
community/stakeholder
confidence.
Lack of council
The risk is failure to Induction
knowledge and Adequate Polices upheld
205 meet council Adverse Reputation. Training for all
understanding of Training Plan
policies councillors
requirements
Negative Media
Attention.

Adverse Reputation.
Lack of council
The risk is failure to Negative Media Induction
knowledge and Adequate Polices upheld
206 meet Employment
understanding of
Attention.
Training Plan
Training for all
Regulations councillors
requirements
Legal Action

Risk Assessment Key

S = Safety H = Health E = Environment D1 = Reputation impact D2 = Stakeholder impact D3 = Community/Customer impact F = Financial Impact L= Likelihood of event occurring R = Risk Rating
.D. Risk/Event Cause Consequence/Impact D D D Mitigation Preventative Residual
S H E F L R
1 2 3 Actions Risk

12
Fines

Adverse Reputation.

Negative Media
Lack of council
The risk is failure to Attention.
knowledge and Training Plan
207 comply with Local Trained Clerk and staff
understanding of updated regularly
Government Acts Legal Action
requirements
Fines?

Risk Assessment Key

S = Safety H = Health E = Environment D1 = Reputation impact D2 = Stakeholder impact D3 = Community/Customer impact F = Financial Impact L= Likelihood of event occurring R = Risk Rating
.D. Risk/Event Cause Consequence/Impact D D D Mitigation Preventative Residual
S H E F L R
1 2 3 Actions Risk

13
Operational Risks
Loss of
community/stakeholder
confidence.
The risk is failing to
Poor Adverse Reputation.
deliver services
Management
4 4 4 4 4 16 INHERENT RISK
effectively
Negative Media
Attention.

Down turn in
service
requirements.
Negative Media
Poor Attention.
The risk is the street Management
Loss of Employ Street Market
market fails to Set regular
301 Failure to community/stakeholder Manager
perform to its objectives
recognise the confidence. Market Committee
expected level
changing
Loss of revenue
needs and
expectations
of the
community
Council not quorate
Adverse Reputation
Multi
Negative Media
Resignations
Insufficient Attention. Regularly promoting the
302 Unable to fill
Councillors Loss of work of the council
through election
community/stakeholder
or co-option
confidence.

Risk Assessment Key

S = Safety H = Health E = Environment D1 = Reputation impact D2 = Stakeholder impact D3 = Community/Customer impact F = Financial Impact L= Likelihood of event occurring R = Risk Rating
.D. Risk/Event Cause Consequence/Impact D D D Mitigation Preventative Residual
S H E F L R
1 2 3 Actions Risk

14
Long term
illness. Produce a
The risk is loss of Impact on key council
303 Business
key council staff services
Unexpected Continuity Plan
death
Vandalism Adverse Reputation
The risk is loss of Lack of Negative Media Regular maintenance
304 CCTV coverage Maintenance Attention. Prudent Budgeting
and/or funds Possible legal action
The risk is
deterioration of: Vandalism Adverse Reputation
Footpaths Lack of Negative Media Regular maintenance
305
Flower Beds Maintenance Attention. Prudent Budgeting
Bus Shelters and/or funds Possible legal action
Community Seats
The risk is failure to
Adverse Reputation
maintain community Vandalism
Negative Media Prudent Budgeting
306 events: Lack of funds
Attention. Promotion of events
Hot Pennies Lack of Interest
Charter Day

Risk Assessment Key

S = Safety H = Health E = Environment D1 = Reputation impact D2 = Stakeholder impact D3 = Community/Customer impact F = Financial Impact L= Likelihood of event occurring R = Risk Rating
.D. Risk/Event Cause Consequence/Impact D D D Mitigation Preventative Residual
S H E F L R
1 2 3 Actions Risk

15
Strategic Risks
Loss of
community/stakeholder
confidence.
Poor decision
The risk is failing to making.
Adverse Reputation.
make Strategic 4 4 4 4 4 16 INHERENT RISK
Decisions Poor Horizon
Negative Media
Scanning
Attention.

The risk is failure


401 to deliver key See 101
council objectives.
Use of political
allegiance to See 205 &
402
influence Council 207
polices
Loss of
The risk is failure community/stakeholder
to recognise the confidence. Continuous
No forward Community Engagement
403 changing needs Adverse Reputation. monitoring of
planning Strategy
and expectations Negative Media Strategy
of the community Attention.

The risk is failing to Loss of Life


protect the Loss of Services
Major
community and Adverse Reputation. Review Plan
404 emergency Emergency Plan
environment during Negative Media Annually
situations
emergency Attention.
situations

Risk Assessment Key

S = Safety H = Health E = Environment D1 = Reputation impact D2 = Stakeholder impact D3 = Community/Customer impact F = Financial Impact L= Likelihood of event occurring R = Risk Rating

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