Road Asset Management Plan Risk Management : Appendix H CONTENTS. 1.0 Risk Management Risk Identification Risk Evaluation.

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1 Road Management Plan Management : Appendix H CONTENTS 1.0 Management Identification Evaluation Prioritisation Control Reviewing & Reporting Register. 4 28/09/2012 1

2 Road Management Plan Management : Appendix H 1 Management management is a systematic approach to identifying and dealing with the risks that threaten our plans and projects and impact upon the continuation of service delivery. To this end NLC has developed a risk management framework the purpose of which is to define in a controlled way how risks and opportunities will be handled within North Lanarkshire Council. The framework provides information on roles and responsibilities and processes and procedures. It sets the context in which risks are managed, in terms of how they will be identified, assessed, managed and reviewed. The Council has a four-step framework for identifying, assessing, managing and controlling and reviewing risk (See Figure 8.1). This is a continuous process and can easily be integrated with performance management. The Council has agreed criteria by which to judge the likelihood and impact of risks, effectiveness of control measures and required levels of management of residual risks. Figure 8.1 Four-step risk management framework 2 identification to the Council s business can take a variety of forms; for example, financial risk, risks to project and service delivery, its reputation, partnerships, employees and Councillors and risks from missed opportunities. Those risks could affect the council s performance, its assets, stakeholders, customers or members of the public. They can also affect the Council s viability. management in NLC is undertaken on a hierarchical basis: Corporate, Service, Function and Contract Specific assessments are undertaken. At a Roads Function level risk identification is undertaken by all officers as part of their daily activities, these are then brought together as part of a group brainstorming exercise; the thoughts and ideas from that brainstorming are then grouped into common themes and developed into a risk that expresses how the issue will impact upon achievement of the council s strategic objectives. 28/09/2012 2

3 Road Management Plan Management : Appendix H 3 Evaluation The next step is to assess those risks in terms of the likelihood that they will occur and the impact if they do. The criteria for the levels of likelihood and impact for risks are shown in table 8.1 below. Table 1.3 Matrix Over 5 million Questions raised in Parliament 2million- 5 million OR Reported to national Press 500,000-2 Million OR Reported in Local Paper 100, ,000 OR Unacceptable levels of Complaints Under 3100,000 OR Some complaints from Individuals Important risks might potentially affect 6 Monitor as necessary less important but still could have a serious effect on the services and duties 3 No action necessary 1 Rare once in 20 years Unlikely once in years Key risk may potentially affect 8 Monitor as necessary less important but still could have a serious effect on the services and duties 5 Monitor as necessary ensure being properly managed 2 Possible once in 10 years Immediate action needed serious threat to provision and/or achievement of key 9 Key risks may potentially affect 7 Monitor as necessary less important but still could have a serious effect on the provision of key -4 Likely once in 3 years Certain once a year The risk is then re-assessed for likelihood and impact. The new score is the current risk score that exists after controls have been applied and so the real level of risk. That information is then recorded in the risk register. 4 Prioritisation The risks are then prioritised to enable decisions to be made about the significance of those risks to the Council, and how they will be managed. Table 1.4: Prioritisation Level of Very High 8-9 High 6-7 Medium 4-5 Low 1 3 How the risk should be managed Requires active management - High impact/ High likelihood: risk requires active management to manage down and maintain exposure at an acceptable level Requires active management - High impact/ High likelihood: risk requires active management to manage down and maintain exposure at an acceptable level Good Housekeeping - May require some risk mitigation to reduce likelihood if this can be done cost effectively, but good housekeeping to ensure the impact remains low should be adequate. Re-assess to ensure conditions remain same Review periodically - are unlikely to require mitigating actions but status should be reviewed to ensure conditions have not changed 28/09/2012 3

4 Road Management Plan Management : Appendix H 5 Control Now that the risks and opportunities have been identified and assessed for likelihood and impact, there needs to be agreement on who will own the risk (and/or manage it) and how the risk will be managed, controlled or exploited. When the existing controls and action plans have been identified, the risks are re-assessed for likelihood and impact. This gives a forecasted controlled score of the Profile as a result of the mitigation action plans. That information is then recorded in the risk register. 6 Reviewing & Reporting action reviews are timed to coincide with general business progress meetings and undertaken on a 6 monthly cycle. This review will be programmed to culminate in an annual review of Profiles recorded in all Council s Registers that should be timed to coincide with the substantive revision of Business Plans. The risk management framework (the four steps of risk management) is a continuous cycle designed not only to identify, assess, manage and review risks, but also to support the service business objectives. Reviewing the risk identification process when drawing up the annual business plan enables the risks and opportunities to be linked directly to the business objectives. That way, risks and opportunities are directly linked to the achievement of business objectives which can then be prioritised using that information. 7 Register The risk registers below has been developed by Roads and Transportation to reflect the functions with in the service, which are: Roads & Structures Design Road Strategy & Road Network Operations 28/09/2012 4

5 Road Management Plan Management : Appendix H ID Description Category Initial 1 Health and Safety (practical, operational, regulatory) -reduce accidents -adherence 2 Revenue Income & Expenditure -meeting income targets -insufficient budget -meeting savings targets -energy inflation (20%) 3 Recruitment and Retention -Failure to deliver key services due to staffing levels and failure to recruit -Workforce planning and development Operational/R egulatory Key Controls / Procedures Linked Documents 8 -Training and Experience -Safety culture -Inspections -Contract Documentation -Health and Safety Plans and Files -F10 -Legislation -Response to CDM 2007 (training, client awareness) -Workplace risk assessments -IOSH training timetabled Financial 5 -Staff resources review complete -Mixed Market forces surveys - condition surveys -Best Value review -Inflation/cost of current service provision -Efficiency savings -Good track record -Winter maintenance budget -winter contingencies fund -Unmet cost pressures (e.g. energy) being met within budget Regulatory/ Operational 7 -Reports produced to flag this as a continuing problem. - recent successes in workforce Planning (has met workforce development needs) -Recruit school leavers/trainee Tech -Service Review - Senior staff to become chartered through experience route -CPD -Service Review giving opportunity for workforce development -Encourage sen staff to pursue chartered status -PRD Further Action Required -Health and Safety Officer to review -Procedures document for workplace risk assessments - workplace risk assessments to be circulated to Roads Managers, checked and updated - staff knowledge of CDM to be verified in PRD reviews - Staff development plans underway -Best Value review ongoing -Improve income generation -PRD -Align procedures with Council policies (corporate training, initiatives and sponsorship) for recruitment of skillseekers, modern apprentices and graduates to provide long term sustainable solution. Lead Responsibility Health and Safety Officer Head of Service Further Action Due By Residual Feb 13 5 Head of Service Feb /09/2012 5

6 Road Management Plan Management : Appendix H ID Description Category Initial 4 National Roads Maintenance Review -need to review NRMR And seek ways Service can operate more efficiently (shared services) 5 Street Lighting -Prudential Project, delayed delivery due to legal challenge 6 Parking Charges -delayed delivery due to budget issues -failure to meet income targets -road management issues because of a lack of enforcement 7 Carbon Reduction Commitment Charges Regulatory/ Strategic/ Financial Key Controls / Procedures Linked Documents 7 -Only authority operating LLP for Roads Financial 7 -Committee approval to replace existing stock with energy efficient lamps -Implemented!m of work to reduce risk in housing areas -Legal action against Council was withdrawn Financial/ Reputation 8 Air Quality Financial/ Regulatory 8 -Committee approval of off street parking charging proposals -Scottish Government DPE application to Scottish Ministers -Council has decided not to proceed with parking charges but Strathclyde Police still asking Council to consider decriminalisation. -Temporary disabled bays being installed pending legislation Further Action Required -approach other authorities to establish demand for services (eg street lighting and roads maintenance) -Review NRMR seeking ways to maintain roads more efficiently -Need to determine procurement implications to ascertain feasibility -Procurement of stock over 2 year period -Continue works -reduce electricity costs (Scottish Power) -Update columns inventory -Improve contract documentation -Action plans to be developed -Traffic orders to be produced -Decriminalisation being further considered -Discuss Parking management with SLC Financial 7 -Budgetary planning -Investigate / analyse costs in order to plan budget -Estimate cost pressures for Carbon Reduction Charges in Identified Air Quality Action Plan (led by Protective Services) -Roads actions not funded (require to submit bids) -Windmillhill St improvement to be completed Mar 13 Lead Responsibility Head of Service Further Action Due By Aug 13 (will go beyond this) Residual 6 Feb 13 6 Feb 13 6 Feb 13 4 Feb /09/2012 6

7 Road Management Plan Management : Appendix H ID Description Category Initial 9 Contract Works - delivery Key Controls / Procedures Linked Documents Financial 9 Project deliverability at risk from external pressures (eg Lightways, etc) Further Action Required Lighting contract documentation to be upgraded in accordance with EU guidance to resolve challenges to contracts Lead Responsibility Further Action Due By Residual Feb /09/2012 7