MPA – risk management strategy update

Report: 12
Date: 15 June 2009
By: Chief Executive and Treasurer

Summary

This report outlines progress in ensuring effective risk management is in place in the Authority and the MPS. In particular, it presents the Authority’s top ten strategic risks and supporting corporate risk register for consideration and identifies progress in ensuring that key risks are properly identified, assessed and managed.

A. Recommendation

That members note the action taken on the MPA risk management implementation plan, including the identification of the Authority’s key strategic risks and the development of the Authority’s corporate risk register.

B. Supporting information

1. At the March 2009 meeting of Corporate Governance Committee it was agreed there would be regular updates on progress made in implementing the Authority’s risk management strategy.

MPA Corporate Risk Register and Top Ten Strategic Risks

2. Attached at Appendix 1 and 2 are the top 10 MPA strategic risks, together with the supporting detailed risk register. The risk register has been developed and continually reviewed by the MPA Senior Management Team in consultation with the MPA Business Management Team (MPA business unit heads). The Authority’s Business Management Group has also reviewed and endorsed the top ten strategic risks and the corporate risk register.

Implementation of the MPA Risk Management Framework

3. There are five key strands of work which were identified as part of the MPA risk management implementation plan:

(a) Strategic Planning and Performance – increase the embedding of risk assessment and management in the MPA planning and budget cycle and performance management framework.(Target date April 2009)

The MPA Assistant Chief Executive has led on the development of the MPA business plan and performance management framework ensuring that key strategic risks are identified within the business and budget planning cycle. Business unit work plans supporting the delivery of the strategic business plan, Met Forward, have been developed to assist in driving and monitoring performance. The identification, assessment and management of risk continues to be developed as a key part of the performance management framework.

The MPA Planning and Performance Unit will continue to assess on an annual basis the Authority’s strategic objectives and ensure that risks and opportunities are properly evaluated and documented. Emerging risks are identified and discussed on a regular basis by the MPA Business Management Group, MPA Senior Management Team and the MPA Business Management Team. Appropriate mitigation and action is agreed as part of this internal review process.

(b) Training and awareness – communicating the Authority’s approach and responsibilities in relation to risk management throughout the organisation. Increase the profile of risk management ensuring it is considered as part of all key meetings and business processes. (Target date October 2009)

Risk training has taken place for the MPA SMT and the Business Management Team. Linda Duncan, Corporate Governance co-opted member, has also recently provided further training for the Treasurer, Assistant Chief Executive and the Deputy Director of Internal Audit which will be cascaded throughout the organisation.

Steps have also been taken to raise risk management awareness throughout the MPA. This has included; publishing a risk management article in the MPA’s internal communications magazine ‘PIVOT’ identifying the new ways of addressing and reporting risk, business unit heads identifying and evaluating key risks with their teams in drawing up and monitoring their work plans and including risk management as an agenda item for all key internal meetings.

(c) Business Continuity – ensuring effective risk management is built into the MPA business continuity planning process. (Target date April 2009)

The assessment and management of risk is a key factor in the development and review of the Authority’s business continuity plan. It is included as an agenda item for the consideration of the MPA Business Continuity Board and was discussed at the recent meeting of the board in April.

(d) MPA and MPS relationship – the MPA and MPS approach to risk management will be continually developed to ensure respective responsibilities and processes are implemented effectively. (Target date – ongoing).

The MPA and MPS risk management strategies have clarified respective roles around risk management and the framework supporting the implementation of the strategies continues to develop. Since the last meeting of this Committee the invitation to have a seat at the MPS Service Improvement Board has been taken up by the Chief Executive. The inclusion of the Authority on this Board has been useful in ensuring effective understanding of responsibilities around risk management. Meetings between the MPS Director of Business Performance and the Assistant Chief Executive, Treasurer, and Deputy Director of Internal Audit also provide a useful forum for challenge and discussion.

MPA officers reviewed the MPS corporate risk register, agreed by Service Improvement Board and the MPS Management Board, with a view to seeking assurance that risks have been properly identified and assessed and that appropriate mitigation is in place. The feedback provided by MPA Officers to members of Service Improvement Board as a result of this review is currently being considered.

(e) Partnership arrangements – ensure effective risk management is built into arrangements. (Target date ongoing).

The majority of new initiatives will be captured by the development of the Business Plan and all such submissions will undergo risk/opportunity consideration. However, the assessment and review of partnership arrangements in particular is an area of ongoing development both in the MPA and MPS.

Audit Review

3. Internal Audit has conducted system reviews on the corporate risk assessment process and is presently engaged in a follow up on this piece of work.

4. External Audit will be reporting on the effectiveness of risk assessment and management as part of the review of Police Use of Resources process which is currently underway. It is expected that the published findings will be available in the autumn of 2009.

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 will be reported to Finance and Resources Committee as part of the 2010/11 and future years budget submission.

E. Background papers

• None

F. Contact details

Report author: Ken Hunt, Treasurer

For information contact:

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

Send an e-mail linking to this page

Feedback