1 Marsh Risk Profiling User Guide for all Schools and Departments

2 Marsh Introduction This document details the process for completing the Risk Management Templates to assist in determining your School / Department risks. This forma part of the annual planning arrangements that has been re-defined in order to build greater co-operation between the strategy committee, schools and departments. This has been done through the development of a more formalised and inclusive planning structure. The process should ultimately: build greater school / department commitment to the planning process through greater communication build greater school / department understanding through a better awareness of the process in relation to strategic objectives build greater cohesiveness between schools / departments through more integrated working improve the management of risk in the process through better understanding of risk and its effects on success Communication and information sharing The success of the annual planning arrangements is dependent upon cross-collaboration between the strategy committee, all schools, and the departments. By building transparency into this process the benefits will be: resources used to deliver annual plans will be maximised each school and department will understand its operations in relation to each other common practices will be identified with each school / departments objectives integrating with overall objectives In order to achieve greater communication the process promotes the need for information sharing. It is therefore paramount that each school and department makes each other aware of: each school and departments information needs the common risk themes that impact on each school and department teaching, research and consultancy cross-sharing opportunities opportunities to assist in each school and departments risk profiling process 1

3 Marsh Contacts: Please read these instructions carefully to ensure you fully understand the expectations of the document, your responsibilities with regard to completing it, and the instructions on how to undertake the various sections. Should you have any questions on any part of this document please contact any of the following members of Strategy Committee:Name:Telephone number: address:Name:Telephone number: address: Please keep this document in a safe place as it will form the template for completing the risk profiling process for the foreseeable future. Should any amendments be made to this process you will be updated accordingly and if necessary a revised user guide will be forwarded to you. 2 Risk Profiling Process: The following diagram details how the risk profiling process is to be undertaken The integration occurs in Q2 where Schools and Departments must prepare their own plans for the following year. This is followed in Q3 where all the outputs from each School and Department are consolidated to develop the draft implementation plan and annual strategic plan. Finally in Q4 the risk management actions related to individual School and Department plans are approved and implemented. Action Planning Workshop Risk Profiling Workshop Pre-workshop Context Setting

4 Marsh Stage 1: Context setting Team selection : It is important that the best available resources are utilised in the risk profiling process. In order to achieve that all parties involved need to be represented and an inclusive partnership developed between the centre, schools and departments. The strategy committee team along with the heads and directors need to establish who the project co-ordinator is, based on their standing within the school / department and their ability to run the workshops. Each school and department is responsible for determining the team to be used in this process. It is recommended that team selection reflects the school / departments range of activities. In order to determine each team it is important to get agreement on the: potential candidates scope of each participants role range of each participants responsibilities securing their agreement to participate timeframes involved potential effects on their current work performance criteria Objectives: establish the project co-ordinator establish the workshop participants Appendices to note: Appendix 1 - likelihood assessment criteria Appendix 2 - impact assessment criteria 5 The selection criteria will be based on: Participant abilities: experience role knowledge Participant range: your own employees other school / departments representatives course representatives student union representatives partner institutions business partners Scoring criteria: The scoring criteria for likelihood and impact has been agreed and this has been done to ensure the outputs of the risk assessment process can be correlated across all schools and departments.

5 Marsh Stage 2: Pre-workshop Completion of the risk identification form: Participants will be asked to complete the risk identification form. The form is detailed in Appendix 3. It is important these forms are completed by all participants and returned to the project coordinator in plenty of time to prepare for the workshop phase Preparation for initial workshop: This comprises three activities: collation and consolidation of risks returned by participants to eliminate duplications recording of the risks confirmation of domestic arrangements within the workshop and equipment required. (Flipcharts, breakout rooms, catering, communication, etc. should be arranged) Objectives: completion of the risk identification form preparation for the initial workshop Appendices to note: Appendix 3 - risk identification form 7

6 Marsh Stage 3: Risk assessment workshop Introduction: Welcome participants and have personal introductions from all those present. Presentation material would consist of: explanation of why the exercise is being conducted explanation of the process set the scene confirmation of the business objectives in context Participants should each be issued with likelihood and impact ratings and be given the opportunity to clarify any issues they wish to raise. Risk assessment: review risk descriptions: ensure common understanding clarify terms and meanings add new risks if required identify causes identify controls (not just detail bullets) link risks to current objectives score likelihood score impact multiply likelihood by impact score to produce a total risk score Objectives: introduction risk assessment ranking Appendices to note: Appendix 4 – Risk Register Appendix 5 – Risk Map 9 Ranking: After all the risks for the session have been assessed they can be quickly ranked. The participants should be given the opportunity for feedback with presentation of the major risks assessed during the day. The ranking will be done based on total score. The risks with the highest total likelihood and impact score are identified as key, with the range at which an uncertainty is key set prior to the scoring exercise being completed. These are then added to the Risk Map.

7 Marsh Stage 4: Action planning workshop Preparation for workshop: This consists of ensuring appropriate facilities and individuals are available Review major risks: Major risks will have been identified in the previous session. It is important that the key risks be action planned and time is not wasted addressing all risks. Therefore it is essential for the project co-ordinator to consider the action planning options for each uncertainty prior to the workshop. Before action planning begins the participants should be given the opportunity to refresh their memory of the key risks identified in the original workshop. Identify actions: The action planning process is: review risks with attendees, including cause, impact and existing controls identify actions Identify deliverables Identify measures Establish milestones Assign accountability The action plan is detailed in Appendix 6 Objectives: prepare for workshop review major risks, including causes, impacts and existing controls identify actions, deliverables, measures, and milestones with accountabilities Review action plan Appendices to note: Appendix 6 – Risk Action Plan 12 Review action plan: Once the process ahs been completed the actions should be reviewed in light of the objectives. It is important that the objectives and the actions are linked. The action plan, risk register and risk map should be forwarded with the annual plan to the Strategy Committee

8 Marsh Likelihood assessment criteria ScoreEvaluationEstimation VERY HIGH HIGH MEDIUM LOW VERY LOW - Financial impact is likely to exceed 12.5% of Budget - Very significant impact on operational activities - Very significant stakeholder concern - Financial impact is likely to be between % of Budget - Significant impact on operational activities - Significant stakeholder concern - Financial impact is likely to be between % of Budget - Moderate impact on operational activities - Moderate stakeholder concern - Financial impact is likely to be between % of Budget - Low impact on operational activities - Low stakeholder concern - Financial impact is likely to be up to 2.5% of Budget - Very low impact on operational activities - Very low stakeholder concern Appendix 1: Likelihood Assessment Criteria

9 Marsh Impact assessment criteria ScoreDescriptionEstimation VERY HIGH (highly probable) HIGH (probable) MEDIUM (Possible) LOW (Unlikely) VERY LOW (Remote) - Likely to occur each year or more than 50% chance of occurrence -Likely to occur more than once in a ten year time period or between 25% and 50% chance of occurrence - May occur in a ten year time period or between 10% and 25% chance of occurrence - Not likely to occur in a ten year period or between 2% and 10% chance of occurrence - Not likely to occur in a twenty year time period or less than 2% chance of occurrence - Potential of it occurring several times within the time period (e.g. 10 years) - Has occurred recently - Could occur more than once within a 10 year time period - Has occurred in the past - Could occur within a 10 year time period - Could be difficult to control due to some external influences - There is a history of occurrence - Has rarely occurred - Unlikely to occur - Has not occurred - Very unlikely to occur Indicators Appendix 2: Impact Assessment Criteria

10 Marsh RiskCause(s)Current Controls Appendix 3: Risk Identification Form

11 Marsh Risk CategoryNo. Risk DescriptionLikelihoodImpactRisk ScoreAggregation Appendix 4: Risk Register

12 Marsh Appendix 5: Risk Map Impact Likelihood

13 Marsh Appendix 6: Risk Action Plan Risk DescriptionNo Likelihood Current Controls ImpactOverall ResponsibilityAction PlanResponsibility