RISK MANAGEMENT POLICY STATEMENT
Definition of Risk Management
Risk is the threat that an event or action will adversely affect an organisation’s ability to achieve its objectives and to successfully execute its strategies. Risk management is the process by which risks are identified, evaluated and controlled. It is a key element of the framework of governance together with community focus, structures and processes, standards of conduct and service delivery arrangements.
POLICY STATEMENT
Heath and Reach Parish Council recognises that it has a responsibility to manage risks effectively in order to protect its employees, assets, liabilities and community against potential losses, to minimise uncertainty in achieving its goals and objectives and to maximise the opportunities to achieve its vision.
The Council is aware that some risks can never be eliminated fully, and it has in place a strategy that provides a structured, systematic and focussed approach to managing risk.
Risk management is an integral part of the Council’s management processes.
OBJECTIVES
The objectives of the Council’s risk management strategy are to: –
1. Integrate risk management into the culture of the council
2 Manage risk in accordance with best practice
3. Anticipate and respond to changing social, environmental and legislative
requirements
4. Prevent loss, disruption, damage and injury and reduce the cost of risk, thereby maximising resources
5. To inform policy and operational decisions by identifying risks and their likely impact
6. Raise awareness of the need for risk management.
These objectives will be achieved by:
1. Establishing clear roles, responsibilities and reporting lines within the council for risk management
2. Providing opportunities for shared learning on risk management across the
council
3. Providing risk management training and awareness sessions
4. Incorporating risk management considerations into the Council’s management processes
5. Effective communication with, and the active involvement of, employees
6. Monitoring arrangements on an on-going basis.
Responsibility for Risk Management
The Council recognises that it is the responsibility of all Councillors and employees to have regard for risk in carrying out their duties. If uncontrolled, risk can result in a drain on resources that could better be directed to front line service provision, and to the meeting of the Council’s objectives and community needs.
Adopted May 2012
Reviewed March 2021
Next review March 2022
Management of Risk
| MANAGEMENT | ||||||
| Subject | Risks identified | H/M/L | Management/Control of Risk | Review/Assess/Revise | Last Reviewed | Next Review Date |
| Business Continuity | Council not being able to continue its business due to an unexpected or tragic circumstance. | L | All files and recent records are kept at the clerk’s home. All electronic records are Cloud hosted by Microsoft 365. In the event of the Clerk being indisposed the Chairman to contact the Webmaster for advice. | Review when necessary. Ensure procedures below are undertaken. | March 2021 | March 2024 |
| Meeting location | Adequacy Health and Safety | M | Meetings are held at the Heath Village Barn. All the premises and facilities are considered to be adequate for the Clerk, Councillors and any public who attend from a health and safety and comfort aspect. The hall is not DDA compliant. | Existing Procedure adequate. Meeting are held using Zoom until May '21 at least. | May 2020 | May 2021 |
| Council Records | Loss through theft, fire, damage | L | Papers, both (a) current and (b) archived, are held in a (a) filing cabinet at the clerk’s home & (b) secure storage. | Provision is considered to be adequate. | March 2021 | March 2024 |
| Council Records - electronic | Loss through damage, fire, corruption of computer | M | The Parish Council’s electronic records are stored on MS Cloud servers. Back- ups of the files are automatically taken daily and monthly and kept in a secure location. Access is via a secure login. | Existing procedure adequate. | March 2021 | March 2024 |
| FINANCE | ||||||
| Precept | Adequacy of precept | M | An annual budget is developed by Council and adopted. Sound budgeting is part of the annual precept and budgeting process. The Parish Council receives regular budget updates and a detailed budget in the late autumn. The precept is an agenda item at the November/January meeting. | Existing procedure adequate. | January 2021 | January 2022 |
| Insurance | Adequacy Cost Compliance Fidelity Guarantee | L L L M | Insurance is reviewed every three years of all insurance arrangements in place. Employers Liability, Public Liability and Fidelity Guarantee are a statutory requirement. | Existing procedure adequate. Review provision and compliance annually | May 2020 | May 2023 |
| Banking | Inadequate checks | L | The Council has Financial Regulations which set out the requirements for banking, cheques and reconciliation of accounts. | Existing procedures adequate. | Mary 2020 | May 2021 |
| Cash | Loss through theft or dishonesty | L | The Council has no petty cash or float. Any cash transactions are made by the clerk, are fully receipted and then paid by cheque on receipt of an invoice. | Existing procedures adequate. | May 2020 | May 2021 |
| Financial controls and records | Inadequate checks | L | Monthly reconciliations prepared by RFO and reviewed by the Parish Council. Two signatures on cheques and stubs. Payments made by Direct Credit are approved at the Full Parish Council Meeting and valid at the next meeting. Internal and external audit. Any financial obligation must be resolved and clearly minuted before any commitment. All payments must be resolved and clearly minuted. Any s137 payment must be recorded at time of approval | Existing procedures adequate. | May 2020 | May 2021 |
| Freedom of Information Act | Policy Provision | L M | The Council has a model publication scheme for Local Councils in place. The clerk is aware that if a substantial request arrives then this may require many hours of additional work. The Council is able to request a fee if the work will take over 15 hours. However the request can be resubmitted, broken down into sections, thus negating the payment of a fee. | Monitor and report any impacts made under Freedom of Information Act | March 2021 | March 2024 |
| Election Costs | Risk of election cost | M | Risk is higher in an election year. There are no measures, which can be adopted to minimize the risk of having a contested election. A contingency fund has been established to meet the costs. | Include in financial statement when setting precept. | January 2021 | January 2022 |
| VAT | Re-claiming | L | The Council has financial regulations which set out the requirements. | Existing procedures adequate. | March 2021 | March 2022 |
| Annual return | Not submitted within time limits. | L | Annual return is completed and signed by the Council, submitted to the Internal Auditor for completion and signing, then checked and sent on to the External Auditor within time limit. | Existing procedures adequate. | May 2020 | May 2021 |
| ASSETS | ||||||
| Listed in asset register | Accidental damage or vandalism. | L | An asset register is kept up to date and insurance is held at the appropriate level. Regular checks should be made on equipment by members of the Parish Council. | Existing procedures adequate. | March 2021 | May 2022 |
| LIABILITIES | ||||||
| Legal Powers and legal liability | Illegal activity or payments. Working Parties taking decisions. | M L | All activity and payments made within the powers of the Parish Council (not ultra vires) and to be resolved and clearly minuted. Clerk to clarify legal position on proposals and to seek advice if necessary. Ensure they have clear terms of reference. | Existing procedures adequate. Monitor. | March 2021 | May 2022 |
| Minutes/ Agendas/ Statutory Documents | Accuracy and legality Non compliance with statutory requirements. Proper document control. | L | Minutes and agendas are produced in the prescribed method and adhere to legal requirements. Minutes are approved and signed at next meeting. Minutes and agendas are displayed according to legal requirements Business conducted at Council meetings should be managed by the Chairman Standing Orders are updated and reviewed annually. Document retention policy updated and based on NALC recommendations and implemented annually. | Existing procedures adequate. | March 2021 | May 2022 |
| Public Liability | Risk to third party, property or individuals. | M | Insurance is in place. Risk assessments of any individual events undertaken. | Existing procedures adequate. | March 2021 | May 2022 |
| EMPLOYEES, CONTRACTORS AND VOLUNTEERS | ||||||
| Clerk | Loss of clerk. Fraud. Actions undertaken. Clerk’s Salary and PAYE. | M L L M | A contingency fund should be established to enable training for the Cilca qualification in the event of the clerk resigning. The requirements of Fidelity Guarantee insurance must be adhered to. Clerk as RFO to make monthly payments to HMRC and report at next meeting. | Consider when setting next precept. Monitor working Conditions. Existing procedures adequate. | November 2021 | January 2022 |
| Employer Liability | Non compliance with employment law. | L | Undertake adequate training and seek advice from BATPC. Review Clerk’s contract annually. | Existing procedures adequate. | April 2021 | April 2022 |
| Contractors | Non-compliance with terms of contract | L | Review contracts tri-annually | Existing procedures adequate | April 2021 | April 2024 |
| Volunteers | Risk to volunteers undertaking work on behalf of the Parish Council. | M | Ensure that volunteers are covered by the Parish Council’s insurance policy. Risk assessments to be carried out for any new activity. | Existing procedure adequate | April 2021 | April 2024 |
| MEMBERS RESPONSIBILITIES | ||||||
| Members Interests | Conflict of interest. Register of members Interests. | M L | Councillors have a duty to declare any interest at the start of the meeting. Register of Members Interests form to be reviewed at least on an annual basis | Existing procedures adequate | April 2020 | May 2021 |