Introduction
Good corporate governance requires mechanisms to be in place for the identification and management of risk. There must be clear focus on risks that can prevent the Council from achieving its priorities as set out in the One Coventry Plan, delivering services as planned and fulfilling its statutory duties. This policy seeks to provide a mechanism for the management of these risks.
Good corporate governance requires that risk management is embedded into the culture of the Council with Members and Officers managing risk at all levels and recognising that this is part of their job. It is important that the nature of how the Council delivers services is acknowledged. In particular, the use of partnerships, projects, shared services, and business transformation programmes bring fresh risks to manage.
Definition of risk
The definition of risk applied to local circumstances is:
Any potential development or occurrence which, if it comes about, would jeopardise the Council’s ability to:
- Achieve its priorities
- Provide services as planned
- Fulfil its statutory duties
Definition of Risk Management
Risk Management is the process by which the Council continuously and methodically addresses the risks which could hinder the achievement of its priorities, provide services as planned and fulfil its statutory duties. The focus of good risk management is the identification of risks, assessment of them, and mitigation where necessary, in order that success is achieved. Risk management increases the probability of success and reduces the probability of failure.