Guide 01/28

Risk management

A guide to good practice for higher education institutions

View further guidance on risk management

To:	Heads of HEFCE-funded higher education institutions Heads of universities in Northern Ireland
Of interest to those responsible for:	Risk management; finance; planning
Reference:	01/28
Publication date:	May 2001
Enquiries to:	Ian Gross, tel 0117 931 7169, e-mail i.gross@hefce.ac.uk Paul Greaves, tel 0117 931 7378, e-mail p.greaves@hefce.ac.uk

Contents and executive summary (read on-line)

The complete printed document is available from HEFCE Publications.

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Report and annexes
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Executive summary
Introduction
Risk and risk management
What is risk?
Controls and exposure
What is risk management?
What benefits will risk management deliver?

Developing risk management
Producing a risk management policy
Establishing an approach

Preparing an implementation plan
Who should be involved?
Identifying risks - techniques
Identifying risks - categories
Prioritisation
Exploring the risks
Risk assessment - impact and likelihood
Risk assessment - techniques
Risk assessment - exposure
Early warning indicators and mechanisms

Generating improvement
What is acceptable exposure?
Making improvements

Sustaining the risk management process
Appointing a 'process owner'
Ownership of risks
Allocating ownership
Documentation and reporting
Independent assurance
Training
Communication and guidance
Annual review
Embedding the process

Annex A Guidance from the private sector: Turnbull and the Combined Code
Annex B Implementation plan: self-assessment questions
Annex C Sample voting form for prioritising risk

Additional material on the web only
www.hefce.ac.uk under 'Good practice' then 'Risk management'
Case studies
Sample risk management policy
Illustrative list of risks for HEIs

Executive summary

Purpose

1. This document draws on good practice in the sector and elsewhere to provide practical guidance to higher education institutions on risk management.

Key points

2. The guide is primarily aimed at those involved in planning, launching and implementing a risk management programme. We have also produced a briefing for governors and senior managers (HEFCE 01/24), and other supporting materials on the HEFCE web-site (www.hefce.ac.uk under 'Good practice' then 'Risk management'). This includes:

case studies, designed to be used as training materials
a sample risk management policy
an illustrative list of risks commonly faced by higher education institutions.

Action required

3. The guidance is not prescriptive, and there is no single correct approach for all institutions. However, we hope that institutions will find the advice and case studies useful in reviewing and, if appropriate, improving their current approach to risk management.