Corporate risk management – MPA assurance process

Report: 8a
Date: 23 March 2009
By: Chief Executive and Treasurer

Summary

This report outlines how the Authority discharges its responsibility for ensuring effective risk management is in place in the Service. In particular, it covers the oversight role of the MPA Corporate Governance Committee and senior officers within the Service and Authority in ensuring key corporate risks are properly identified, assessed and managed.

A. Recommendation

That members note the report.

B. Supporting information

1. At the last Committee meeting, following the approval of the MPA and MPS risk management strategies, it was agreed that a report on the MPA oversight of risk assessment and management in the MPS be brought to this meeting. A more explicit statement on the nature and frequency of review was requested.

2. The MPA Corporate Governance Committee has a key role in the strategic oversight and review of risk management activity within the Service, receiving reports on behalf of the Authority for consideration and action. The Committee approves the corporate risk management strategy and framework and is responsible for ensuring appropriate systems are in place for assessing and managing key risks to the Authority and Service.

3. The Authority is required to make a statement regarding the effectiveness of the risk assessment and management arrangements in drawing up the Annual Governance Statement. The AGS is included in the Authority’s Statement of Accounts each year. The Director of Internal Audit makes an annual assessment of internal controls, including risk, which informs the Annual Governance Statement and the Director’s Annual Report. Corporate Governance Committee review the Annual Governance Statement and the Director of Internal Audit’s Annual Report on behalf of the Authority. It is responsible for monitoring progress on any areas for improvement identified, including any that may relate to risk management. This is a quarterly review of progress on agreed actions within the AGS.

4. Internal Audit also conducts system reviews on the corporate risk assessment process which are reported to Corporate Governance Committee. External Audit report annually on the effectiveness of risk assessment and management as part of the review of Police Use of Resources.

5. The MPS Service Improvement Board has the lead in supporting Management Board in overseeing the management of corporate risk. The SIB, chaired by the Director of Resources, first met in September 2008 and is responsible for reviewing the corporate risk register at least every two months.

6. The Authority is not represented on SIB, however, arrangements have now been made for an MPA review of the MPS corporate risk register following the appropriate SIB meeting. The review will be conducted by the Treasurer, Assistant Chief Executive and Deputy Director of Internal Audit, to seek assurance that risks have been properly identified and assessed and that appropriate mitigation is in place. The Authority and Service risk registers will also be aligned as part of this process. Any significant issues arising from the review will be fed back to SIB members for action to be taken before reporting back to the MPA SMT and Corporate Governance Committee as appropriate. This will give the opportunity to review and challenge the MPS corporate risk register and the mitigation proposed for these risks. The outcome of these reviews will be reported to Corporate Governance Committee on a half yearly basis.

7. The Chief Executive and Treasurer will also inform the MPA Business Management Group of emerging/changing risks that are considered of such significance that to delay notification to Corporate Governance Committee would be critical to the organisation. Risks can then be promptly evaluated and appropriate action agreed.

8. SIB reviewed the MPS corporate risk register at its last meeting in February and a copy has been provided to the MPA. The corporate risk register is presently being reviewed by senior managers in the MPA prior to reporting to the Committee in June. MPA officers will feedback comments for review and consideration by SIB as soon as possible and prior to the June meeting.

9. In discharging its monitoring role the MPA Corporate Governance Committee will receive;

• Quarterly reports from the Authority and Service on the progress made in implementing the approved risk management strategy and framework.
• At least half yearly, a report by the Chief Executive and the Treasurer of the Authority and Service assessment of key corporate risks (this process will commence at the June 2009 meeting of this committee).
• Quarterly progress reports from the Treasurer on any issues arising from the Annual Governance Statement.
• Quarterly update reports from the Director of Internal Audit highlighting progress in implementing any audit recommendations for risk management.
• Quarterly updates from the MPS on Corporate Governance issues

C. Race and equality impact

None specific to this report

D. Financial implications

An assessment is made of financial risks undertaken as part of the annual budget submission cycle and is reported to Finance and Resources Committee as part of the budget submission.

E. Background papers

None

F. Contact details

Report author: Ken Hunt, Treasurer, MPA.

For information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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