Clawson, Hose & Harby Parish Council
RISK ASSESSMENT AND PROPOSALS FOR MANAGEMENT OF RISKS
2020 09 Risk Assessment and Proposals for Management of Risk – Adopted.doc The failure to manage risks effectively can be expensive in financial terms and also in terms of service delivery.
The objective of this document is to address the risks that the Parish Council might have to deal with. Items to be assessed include the assets and procedures of the Parish Council, employees and sub contractors. To achieve this the clerk should:
•
Identify risks facing the council
•
Evaluate the potential to the council of one of these risks taking place;
•
Agree measures to avoid, reduce or control the risk or its consequence.
The Parish Council is responsible for the provision and maintenance of playgrounds, village greens, allotments, Long Clawson cemetery, closed churchyards (Clawson and Hose (part)), community seating, bus shelters and street lighting.
The risks can be separated into two categories;
HEALTH & SAFETY of employees and parishioners and
BUSINESS RISKS.
Although every effort has been made to encompass all risks, it cannot be seen as a definitive list and must be reviewed and updated as appropriate.
Appendix A comprises a current evaluation of Risk Assessment
RISK ASSESSMENT EVALUATION
There have been 8 steps used in carrying out the risk assessment;
•
Identify the hazards
•
Identify those at risk
•
Identify existing control measures
•
Evaluate the risk
•
Decide/Implement control measures
•
Record assessment
•
Monitor and review
•
Inform
Clawson, Hose & Harby Parish Council
RISK ASSESSMENT AND PROPOSALS FOR MANAGEMENT OF RISKS
2020 09 Risk Assessment and Proposals for Management of Risk – Adopted.doc A risk is defined as the likelihood that a hazard will cause harm or have an impact on business. To produce a risk ranking simply multiply the likelihood by the impact, i.e. Risk = Likelihood x Impact.
After the multiplication you are left with a number from 1 to 25 which can be matched against the Residual Risk i.e. the risk that remains after the controls are in place.
Likelihood
Severity
1 – Very Low
2 – Low
3 – Moderate
4 – High
5 – Very High
1 – Highly unlikely 1 2 3 4 5
2 – Unlikely 2 4 6 8 10
3 – Possible 3 6 9 12 15
4 – Probable 4 8 12 16 20
5 – Certain 5 10 15 20 25
Risk Rating/Priority
1 Urgent Action – (Risk rating 15 – 25)
2 High Priority – (Risk rating 10 – 12)
3 Medium Priority – (Risk rating 5 – 9)
4 Low Priority – (Risk rating 2 – 4)
5 Very Low Priority – No Action Required (Risk rating 1)
Clawson, Hose & Harby Parish Council
RISK ASSESSMENT AND PROPOSALS FOR MANAGEMENT OF RISKS
2020 09 Risk Assessment and Proposals for Management of Risk – Adopted.doc Assessment of Risks for Employees and Parishioners
Satisfactory precautions should be taken to ensure that a risk is small. Potential hazards are to be identified and decided who might be harmed and why. Risks must be evaluated and decisions made as to whether existing precautions are adequate or whether more should be done. Findings are to be recorded. Assessments will be reviewed and revised if necessary. This process must not be OVERCOMPLICATED. HAZARD means any thing that can cause harm. Risk is the chance Very High, High, Medium or Low or Very Low that someone or something will be harmed by the hazard.
The following procedure will be adopted: –
Identify hazard
Decide who may be harmed & why
Evaluate the risk
Record the findings
Review the assessment and revise if necessary
The areas to be assessed are:-
1.
Allotments
2.
Bus shelters
3.
Playgrounds
4.
Cemetery
5.
Clerks working environment
6.
Closed Churchyards
7.
Community seating
8.
Nature reserve
9.
Street lighting
10.
Trees on Parish Council property
11.
Village greens (including The Sands car park)
12.
Waste bins
Business Risks to be considered are;
Potential risks must be identified and evaluated by asking the question WHAT IF? Decisions are to be taken as to whether existing procedures are adequate; Assessments will be reviewed and revised if necessary. The following Policies and systems have been identified as being the areas to be assessed;
•
Assets
•
Cemeteries and Graveyards
•
Code of Conduct
•
Computer Security
•
Customer Complaints
•
Dealing with Contractors
•
Employee Annual Assessment
Clawson, Hose & Harby Parish Council
RISK ASSESSMENT AND PROPOSALS FOR MANAGEMENT OF RISKS
2020 09 Risk Assessment and Proposals for Management of Risk – Adopted.doc •
Employee Grievances
•
Financial Regulations
•
Insurance
•
Legal requirements
•
Racial Discrimination
•
Security of Records
•
Standing Orders
•
Storage of Documents
This document will be reviewed each year at the August meeting of the Parish Council.
First published July 2005. Amended: Nov 2010 Minute 10/85f.i Revised July 2018 Minute18/51. Revised September 2020
This document incorporates the previous documents; ‘Risk assessment policy’ and ‘Appendix A Risk assessment and management policy’.
Clawson, Hose & Harby Parish Council
RISK ASSESSMENT AND PROPOSALS FOR MANAGEMENT OF RISKS
2020 09 Risk Assessment and Proposals for Management of Risk – Adopted.doc Risks Proposals for management of risks Assessment of Risk (no controls in place) Assessment of Risk (controls in place – residual risk rating) Code Risk Category of risk Severity Likelihood Risk Rating/ Priority Proposals for Management / Control measures in place Severity Likelihood Risk Rating/ Priority Further controls required Review frequency Reviewed – Date
A1
Assets – Protection of physical assets.
Cost of replacing damaged, destroyed or missing assets. Loss of facilities.
Financial
4
1
4 / Low
The PC holds buildings and contents insurance with a level of cover applicable to the total current value of all material assets held.
4
1
4 /Low
No
Annual
A2
Assets – Security of buildings, equipment etc.
Cost of replacing damaged, destroyed or missing assets. Facilities out of use
Financial
4
1
4 / Low
Regular external backup of computer records.
4
1
4 /Low
No
Annual
F1
Banking
Cash flow problems. Increased potential for fraud
Finance
5
2
10 / High
Regular banking and reconciliation of statements. Mandate kept up to date.
4
2
8 / Medium
No
Annual
F2
Risk of consequential loss of income
Loss of key data.
Finance
5
1
5 /
Medium
Adequate level of insurance cover. Important documents backed up, kept in locked filing cabinet.
Regular external backup
4
1
4 /Low
No
Annual
F3
Loss of cash through theft/dishonesty
Adverse publicity on disclosure. Reputational & financial loss.
Finance
4
1
4 / Low
Bank reconciliation undertaken on a regular basis. Adequate level of fidelity insurance cover, with a minimum of £10,000.
3
1
3 /Low
No
Annual
F4
Financial controls and records
Lack of control over the Council’s assets. Higher likelihood of fraud or misappropriation of assets. Ineffective reporting. Qualified internal and external audit reports.
Finance
4
1
4 / Low
Accounts and asset register prepared on appropriate computerised accounting system. Bank reconciliation undertaken on a regular basis. Expenditure payments approved by council. Minimum 3 council signatories on cheques.
3
1
3 /Low
No
Annual
F5
Compliance with HMRC regulations
Penalties and/or fines for late returns, errors on submissions etc. Reputational risk and adverse publicity.
Finance
3
1
3 / Low
Use external advice when necessary. Submit payroll end of year returns online, on time. Internal and external audit review.
3
1
3 /Low
No
Annual
Clawson, Hose & Harby Parish Council
RISK ASSESSMENT AND PROPOSALS FOR MANAGEMENT OF RISKS
2020 09 Risk Assessment and Proposals for Management of Risk – Adopted.doc Risks Proposals for management of risks Assessment of Risk (no controls in place) Assessment of Risk (controls in place – residual risk rating) Code Risk Category of risk Severity Likelihood Risk Rating/ Priority Proposals for Management / Control measures in place Severity Likelihood Risk Rating/ Priority Further controls required Review frequency Reviewed – Date
F6
Budgets supporting annual precept.
Council receives less funding than is required to meet its obligations and objectives.
Finance
4
2
8 / Medium
Council prepares detailed budget in late Autumn. Precept determined directly from this budget. Actual expenditure versus budget reported to Council at each monthly meeting.
3
1
3 /Low
No
Annual
L1
Liability Risk to third party, property or individuals.
Funding cost of a successful action or claim against PC.
Reputational risk.
Financial Liability
5
2
10 / High
Public liability insurance cover (£5M).
2
2
4 /Low
No
Annual
L2
Legal liability as a consequence of asset ownership.
Injury to employees or members of the public using asset.
Legal Liability
5
3
15 / Urgent
•
Playgrounds checked weekly and documented
•
Other assets checked yearly.
4
2
8 / Medium
Review documented asset checks
Monthly
L3
Non-compliance with employment law
Employee dissatisfaction and disputes, potentially leading to industrial tribunal.
Employer liability
4
2
8 / Medium
•
Relevant staff training and experience.
•
Advice from relevant professional advisers and membership bodies e.g. LRALC
•
Code of Conduct training for members.
•
Employers liability insurance (£5M)
4
1
4 /Low
No
Annual
L4
Non-compliance with HMRC requirements.
Fines and penalties for late returns, errors etc.
HMRC investigations.
Employer liability
4
2
8 / Medium
•
Relevant staff training and experience.
•
Advice from HMRC.
•
Internal and external audit reviews.
4
1
4 /Low
No
Annual
L5
Safety of staff and visitors
Funding cost of a successful action or claim against the Council.
Reputational risk.
Employer liability
4
2
8 / Medium
•
Adequate insurance.
•
Health & safety policy in force
4
1
4 /Low
No
Annual
Clawson, Hose & Harby Parish Council
RISK ASSESSMENT AND PROPOSALS FOR MANAGEMENT OF RISKS
2020 09 Risk Assessment and Proposals for Management of Risk – Adopted.doc Risks Proposals for management of risks Assessment of Risk (no controls in place) Assessment of Risk (controls in place – residual risk rating) Code Risk Category of risk Severity Likelihood Risk Rating/ Priority Proposals for Management / Control measures in place Severity Likelihood Risk Rating/ Priority Further controls required Review frequency Reviewed – Date
LL1
Ensuring activities are within legal powers
Potential reputational and financial risk.
Legal liability
3
2
6 / Medium
•
Legal position identified on any new proposal put before the Council.
•
Advice to be taken when necessary.
•
Standing orders/financial regulations up to date and complied with.
3
1
3 /Low
No
Annual
LL2
Accurate and timely reporting via the minutes.
Inappropriate or no actions undertaken. Reputational risk.
Non compliance with the Freedom of Information Act
Legal liability
3
3
9/ Medium
•
Full council meets regularly and receives and approves minutes of meetings.
•
Minutes made available to public via the Council website.
3
1
3 /Low
No
Annual
LL3
Proper document control.
Loss of key data.
Confidential data compromised. Council unable to function effectively.
Legal liability
5
2
10 / High
•
Any key legal documents kept in locked cabinet at Clerks home.
•
Computer backed up regularly
4
1
4 /Low
All key non electronic documents to be scanned electronically and backed up.
All electronic records to be backed up remotely.
Annual
C1
Councillor propriety – Registers of Interests in place.
Conflict of interest of Councillors. Corruption.
4
2
8 / Medium
Register of Interest completed.
Gifts and Hospitality Register available.
4
1
4 /Low
Annual
H1
COVID19 – risk of cross infection from and by users of Parish Council play equipment
Legal liability/
Health
4
2
8/
Medium
Post notices about potential for infection and require that all users follow national guidance on hand cleanliness procedures.
4
1
4/Low
In the event of observed non compliance close all play equipment.
Monthly
Clawson, Hose & Harby Parish Council
RISK ASSESSMENT AND PROPOSALS FOR MANAGEMENT OF RISKS
2020 09 Risk Assessment and Proposals for Management of Risk – Adopted.doc
