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STFC's Approach to Risk Management
INTRODUCTION
1. The purpose of this policy is to establish the Science & Technology Facilities Council’s (STFC’s) approach to risk management. STFC will adopt a systematic approach to risk assessment and management that is compliant with the ‘Orange Book’ and consistent with the ‘Risk Management AssessmentFramework - A tool for Departments (HM Treasury – Oct 2004)’. This policy was approved by STFC Finance Committee on 18th December 2008 and endorsed by STFC Audit Committee on 29th January 2009.
2. Facilitating great science and developing world leading technology are the goals of the STFC; without taking risks STFC will not achieve its goals. The identification and analysis of risk has always been inherent in much of what STFC does. In some activities, such as health and safety, our appetite for risk is rightly minimal, but in many activities, where the potential rewards are highly desirable our attitude is more robust. It is important to understand that risk is a broader concept than the traditional view of merely a threat. It also recognises the risks of taking or not taking opportunities.
RISK Policy Statement
Effective risk management helps STFC achieves its goals. To that end STFC’s policy is to:
a. manage risk actively across the full breadth of STFC’s work;
b.
devolve responsibility for risk management to the most appropriate level and locality within STFC;
c. integrate risk management with planning and budgeting to ensure that risks are taken fully into account in strategic investment decisions;
d.
encourage a risk–aware, risk-enabled approach to working;
e. provide guidance and training on the tools and techniques of risk assessment and risk management;
f.establish appropriate assurance and monitoring mechanisms; and
g. continue to develop risk management policy and good practice.
STFC will actively monitor and regularly review risks on a constructive ‘no blame’ basis, and communicate clearly any subsequent actions required.
RISK OBJECTIVES
3. The purpose of risk management is to:
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preserve and protect the Council’s assets, reputation and staff;
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promote corporate governance by integrating risk management and internal control;
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enhance and protect the local environment;
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improve business performance; and
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promote a risk aware culture in order to avoid unnecessary liabilities and costs, but to encourage the taking of calculated risk in pursuit of opportunities that are beneficial to the organisation.
4. Risk management activities are designed to:
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provide increased confidence in achieving desired outcomes;
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effectively constrain threats to acceptable levels; and
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take informed decisions about exploiting opportunities.
This content is currently being updated and a link to the full Risk Management Policy will be here in due course.
Page last updated: 14 May 2009
by John Sullivan
