Trust Board papers November 2012 - Barking Havering and ...

• Financial risks: risks associated with income, expenditure, fulfilment of contracts and the
correct application of Standing Orders, Standing Financial Instructions, Scheme of
Delegation and other financial obligations.
• Reputational risks: risks associated with public opinion and risks which may damage the
credibility or good name of the Trust.
It is recognised that the boundaries between these categories are not always clear, and that some
risks may fall into more than one category.
Business Planning & Risk Management
Operational risks should link to each Directorate’s Business Plan. The Business Plan is a
document that brings key information together in one place and demonstrates the service’s focus
on service and Trust’s priorities. All major risks impacting the provision of service and to other
services and partners resulting from the consequences, then a risk assessment and action plan
should be recorded with brief mitigation.
4.4 THE RISK MANAGEMENT PROCESS
The Trust’s strategy is to apply the following principles to the management of risk:
Establish the context
A strategic, organisational, operational and risk management context will be established in
which the process will take place. A criteria against which risk will be evaluated should be
established and the structure of the analysis defined.
Identify Risks
Identify what, why, when and how risks can arise as the basis for further analysis.
Risk Assessment
Decide who might be harmed and how. Using the Trust’s generic risk assessment template
and transferring the results to a comprehensive risk register. Escalating the findings to line
management and all staff.
Analyse risks
Determine the existing controls and analyse risks in terms of consequence and likelihood in
the context of those controls. The analysis should consider the range of potential
consequences and how likely those consequences are to occur. Consequence and likelihood
will be combined to produce an estimated level of risk.
Evaluate risks
Evaluate the risks and decide on precautions. Compare estimated levels of risk against the
pre-established criteria. This enables risks to be ranked so as to identify management and
Board priorities. It is essential that the evidence used to compare the risk to these criteria is of
known standards of quality and reliability, otherwise the risk may be over or under rated or not
identified at all.
Treat risks
Accept and monitor low-priority risks. For other risks, develop and implement a specific
Management action plan that includes consideration of the resources required to address the
risk, the impact that treating the risk as well as not treating the risk will have in other service
areas, whether the risk, if realised would be reversible and in what context, if any, realising the
risk would be defensible. Record your findings.
Service development planning process
Barking, Havering & Redbridge University Hospitals NHS Trust Page 12 of 40
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