A Practical Case Study Of Risk Management within a Local Strategic Partnership

1. A Practical Case Study Of Risk Management within a Local Strategic Partnership Peter Davidson and Craig Murray

2. Marsh Ltd Introduction Background on the Authority The Project The Process The Outcomes Summary Discussion

3. Marsh Ltd Background on the Authority. A Shire County Population 287,000; 234 psqm (national av 990) 0-4 Years 4.9% (national 5.7%) 5-15 Years 13.5% (national 13.5%) 16-29 Years 14.4% (national 18.0%) 30-44 Years 20.5% (national 22.4%) 45-Retirement 24.3% (national 21.7%) Retirement-74 13.4% (national 10.9%) 74+ 9.0% (national 7.7%) Revenue budget £285M; Capital Budget £63M 24 key Partners; 50 other community groups

4. Marsh Ltd Top Priorities 2006-2011 Developing one stop access to services Developing prevention services for CYP through multi-agency working and by increased extended social and children centre provision Achieving an improved and integrated waste management service through partnership and PFI Developing sustainable rural transport solution by shifting the balance from conventional buses towards community transport Protecting adults at risk by developing support for people with complex learning difficulties and through PFI and community projects

5. Marsh Ltd The Partnership The Vision To improve significantly the quality of life for the people of the County by working together Responsible to Public Service Board – chaired by local Bishop; management group have executive responsibilities 4 Main Areas of Service Children and Young People – County Council; PCT; Youth offending service; career organisations; business sector Safer and Stronger Communities – County Council; District Councils; Partnership Organisation; Police; Voluntary Sector Healthier Communities and Older People – County Council; PCT; Voluntary Organisations Sustainable Communities – County Council; Fire & Rescue; Energy Agency; Housing; District Councils; Business Sector

6. Marsh Ltd Case Study – County CouncilLocal Strategic Partnership Situation The Local Strategic Partnership has developed its’ Local Area Agreement and prior to implementation wished to use risk management as the common thread for all Partner organisations to:- Have a consistent definition of, a shared appetite for and a consistent process of identifying / managing risk To create a single risk register of the Partnership’s significant risks, prioritised for risk improvement planning and a platform for future monitoring of such risks / action plans

7. Marsh Ltd Case Study – County CouncilLocal Strategic Partnership Project Methodology The project activity was subdivided into a number of key stages as follows:

8. Marsh Ltd Case Study – County CouncilLocal Strategic Partnership Timescales of the project Proposal drafted 15th May 2006 Risk Workshop Briefing Note and Questionnaire issued 26th May 2006. Workshops on 12th July 2006. Report and Recommendations issued 24th August 2006 after consultation and agreement with the Client. Presentation to Public Service Board on 4th September 2006.

9. Marsh Ltd Case Study – County CouncilLocal Strategic Partnership Phase 1. Pre-workshop Study Risk Questionnaire These established an up-to-date ‘snapshot’ of the material risk exposures, and led to the production of a risk “long-list” that formed the basis of the risk assessment workshops. The main objectives of the Questionnaire were: - To capture respondents’ perceptions of the particular risks to the delivery of LAA expected outcomes; and To begin to capture details regarding any controls or counter-measures currently in place to manage such risks.

10. Marsh Ltd Case Study – County CouncilLocal Strategic Partnership Phase 1. Pre-workshop Study (contd.) – all participants, representatives of the 4 key Service Groups within the Strategic Partnership were issued with a briefing document to set the risk context for the ensuing workshops The objectives of these workshops were to: 1. To introduce a common and consistent approach to risk management for all delivery groups; 2. In the context of the objectives of the partnership vision and aims, to identify potential risks to the achievement of relevant expected outcomes for respective delivery groups (Note: attention will focus on the 11 LPSA targets included within the 32 expected outcomes); 3. To assess and prioritise risks in terms of potential impact and likelihood; 4. To identify and prioritise key risks; and 5. Begin to develop action-plans to address the risks identified

11. Marsh Ltd Case Study – County CouncilLocal Strategic Partnership Phase 2. Service Group workshops Our consultants facilitated a series of four risk identification and assessment workshops, one for each of the following Service Groups (Blocks):- Healthier Communities and Older People Partnership (7 delegates) Safer and Stronger Communities (6 delegates) Children and Young People (14 delegates) Sustainable Communities (20 delegates)

12. Marsh Ltd Case Study – County CouncilLocal Strategic Partnership Phase 2 (contd.) Workshop Agenda Introduction and Explanation of Objectives. A risk management training/refresher session: on key risk management theory and the methodology being used in the workshops. Risk Identification and assessment of the impact and likelihood. Risk prioritisation. Summing up and the next steps.

13. Marsh Ltd Case Study – County CouncilLocal Strategic Partnership Number of Risks per Service In total 136 Risks were identified

14. Marsh Ltd Case Study – County CouncilLocal Strategic Partnership Top 5 Risks Mainstream budget reductions in NHS and National Treatment Budgets. That District Councils fail to develop planning policies which adequately support the requirements of the LAA Expected uplift funding not provided by the Department of Health/Home Office to support the delivery of the National Drug Strategy (LAA Year 1). Funding cuts made (years 2 and 3). Restructuring – Police, Probation, Local Government or review of Crime and Disorder Act – individually. Withdrawal of local bus services by commercial operators.

15. Marsh Ltd Case Study – County CouncilLocal Strategic Partnership Phase 3 – Analysis & Reporting The potential impact and likelihood of these risks were assessed against meaningful definitions / criteria and captured in a risk register in order to prioritise the outputs for risk improvement planning. Risk improvement planning measures were then applied to the 32 risks deemed to be critical, according to their combined impact and likelihood score. Block leads, in conjunction with target lead officers, were subsequently asked, through the appropriate partnerships, to review the critical risks and amend the delivery plans for these targets detailing how the risks are to be managed / addressed. amend the relevant delivery plans where appropriate. In doing this, priority was given to the LPSA targets on the list.

16. Marsh Ltd Case Study – County CouncilLocal Strategic Partnership Marsh Recommendations Fill in the Gaps Identify the Strategic Risks Prioritise Actions The Risk Register Risk Management Schedule

17. Marsh Ltd Case Study – County CouncilLocal Strategic Partnership Outcome (I) 47 delegates bought-in to the risks to the partnership through active participation in the workshops, All 12 different organisations within the Strategic Partnership were represented, and were able to overcome individual cultural differences in approach to risk tolerance / assessment They jointly identified some 136 risks to the successful implementation of the Local Area Agreement, not risks to themselves nor their own organisations, but to the partnership These findings were then presented to the Public Service Board for sign-off and have been maintained under subsequent review as part of the Strategic Partnerships monitoring and review process

18. Marsh Ltd Case Study – County CouncilLocal Strategic Partnership Outcome (II) The risk management process has given:- the Management Group a better understanding of the risks to successful implementation, the Public Service Board assurance that risks are being managed and external government stakeholders confidence that modernisation reforms can be made to work effectively across the various stakeholder organisations in the County.

19. Marsh Ltd Applying Good Practice in Your Organisation Discussion session What partnerships are your organisations involved in? Who is leading them? How are you involved? What are the particular challenges? How does risk management support these partnerships? How can you become involved? What skills / further support would you find helpful?

20. Marsh Ltd