Risk Management Strategy

Report: 6
Date: 08 July 2004
By: Treasurer and Commissioner

Summary

The report seeks adoption by the Authority of a strategy to provide an overarching framework for risk management in the MPA and MPS.

A. Recommendations

That the Authority adopts the risk management strategy set out at Appendix 1.B. Supporting information

B. Supporting Information

Background

1. In July 2000, the Authority’s Finance, Planning and Best Value Committee agreed on the recommendation of the MPA Treasurer that there should be a strategic review of risk management in the MPS. Willis were eventually appointed to carry out that review which took place during 2001. Willis’s final report was considered by an ad hoc group of MPA members in February 2002. The group endorsed the recommendation that, as a first step, a Director of Risk Management should be appointed in the MPS.

2. Following the appointment of Nick Chown to that post appropriate risk management processes have been put in place within the MPS. These comprise:

• Corporate management focus through the Corporate Risk Management Group headed by the Director of Risk Management within the Deputy Commissioner’s Command.
• Strategic oversight by the MPS Corporate Governance Strategic Committee chaired by DAC Richard Bryan and reporting to the MPS Management Board.
• Corporate risk profile with Management Board ownership.
• A rolling programme of risk management activity.

3. Risk management is a key element of governance for the MPA. The Authority is required, under the Accounts and Audit Regulations 2003 to have ‘a sound system of internal control which facilitates the effective exercise of (its) functions and which includes arrangements for the management of risk’. A statement of internal control has to be published with the Authority’s annual accounts commencing with 2003/04.

4. At its meeting on 27 May 2004 the Authority agreed that the MPA’s responsibility for risk management should be delegated to a new Corporate Governance Committee which would also subsume the responsibilities of the former Audit Panel and the Health and Safety Sub- Committee.

5. The MPA senior management team is developing a risk profile for the Authority’s own direct activities under the proposed corporate strategy.

Risk management strategy

6. The Authority needs to adopt an overarching risk management strategy to provide a framework within which the work of both the MPA and the MPS fits. The strategy attached at Appendix 1 has been approved by the MPS Management Board. It has also been considered and endorsed in draft by the Authority’s Finance Committee.

7. The strategy sets out the objectives, responsibilities, processes and support mechanisms for risk management. Underneath the strategy will sit processes for identification and evaluation of risks and programmes of activity to manage or mitigate risk.

8. The MPA’s Corporate Governance Committee will be responsible for ensuring that risk management processes and programmes operate effectively in accordance with the strategy.

C. Equality and diversity implications

Risk management will support the effective delivery of equality and diversity objectives and policies.

D. Financial implications

Risk management will facilitate the achievement of improved cost effectiveness and the reduction of financial losses. Limited investment in specialist staff will be managed through the budget process.

E. Background papers

MPA Finance Committee report 22/04/04.

F. Contact details

Report author: Peter Martin, Treasurer MPA; Nick Chown, Director of Risk Management MPS

For more information contact:

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

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