Risk Management Policy

SADC Risk Management Policy

1. BACKGROUND

         “If a council doesn’t have effective risk management then it doesn’t have effective management. That is because risk management is about making the right decisions and about achieving objectives once those decisions have been made. In short, risk management can ensure best value is achieved” – SOLACE.

1.1 The Council fully recognises that there are risks involved in all of its day-to-day activities and the delivery of services and that it has a clear duty to ensure that all risks are managed effectively.

1.2 Managers within local government recognise that the management of risk is a daily task however, organisations require an overall policy to ensure that a risk management framework and culture is embedded throughout the organisation.

1.3 The Council has several examples of existing risk management including the Constitution, an established Risk Management Group, the annual service planning process, the Business Continuity Plan, the annual Internal Audit Plan, the Whistle blowing policy and insurance arrangements.

1.4 Risk Management also plays a key part in the Statement of Internal Control which forms part of the statutory annual Statement of Accounts and which represents the outcome of an annual review of the effectiveness of the system of internal controls.

1.5 Despite the examples of good practice referred to at 1.3 and 1.4 above, the Council does not have an overall policy that outlines the way in which, through a systematic approach, risk will be identified, recorded, evaluated and managed.

2. PURPOSE OF THE POLICY

2.1 The purpose of this document is to specify a Risk Management Policy for the Council for embedding a risk management framework and culture throughout the whole organisation.

3. OBJECTIVES OF THE POLICY

3.1 The objectives of the Risk Management Policy are to: -

i. Embed a risk management framework into the culture of the Council;
ii. Ensure that statutory obligations are complied with;
iii. Preserve and enhance existing and future service delivery through a systematic approach to the management of risks so as to increase the likelihood of the Council’s objectives being achieved;
iv. Safeguard the interests of members, staff, service users, tenants, partners and all other persons to whom the Council has a duty of care.
v. Protect the Council’s assets;
vi. Safeguard, enhance and promote the reputation of the Council;
vii. Maintain and improve the effective control of public funds in order to avoid financial loss;
viii. Minimise the possibility of any organisational failure.

3.2 The policy of the Council is to adopt best practice in the systematic management of risk.