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Risk Management: A Case Study by
Femi Lucas (MSc, MBCS)
Business Performance & Risk Manager
HEALTH
APPRENTICESHIPS & TRAINING
SUPPORT TEACHING &
LEARNING
HEALTH & SOCIAL CARE
QUALITY OF ASSESSMENT
FUNCTIONAL SKILLS
PLAYWORK
CHILDREN & YOUNG PEOPLE
EARLY YEARS
EDUCATOR
UK's only specialist awarding organisation for the children, adult and health care sectors.
Core business is the development of high quality vocational qualifications.
A portfolio of qualifications ranging from Entry to Level 5.
Last year, over 150,000 learner registrations from over 1000 Centres.
Started in 1945 under the name of the National Nursery Examination Board (NNEB).
In 1994, the NNEB merged with the Council for Early Years Awards to form CACHE.
A registered charity.
Risk Management: A Case Study
The why of risk management @ CACHE
The how of risk management @ CACHE
The underlying values and principles of risk management @ CACHE
The how of measuring performance of risk management @ CACHE
Risk Management
Motivation
Risk Culture
Risk Management
Process
Risk Management
Evaluation
January 2008
September 2014
September 2008
September 2009
September 2010
September 2011
September 2012
September 2013
Economic Downturn
The EYE Suite replaces all existing
Level 3 full and relevant Child Care
qualifications
The difficult task of
replacing Richard
Dorrance as CEO
Introduction of Ofqual’s General
conditions of recognition;
Changes to CACHE
qualifications imposed by CCLD
Changes to the dynamics of learner funding streams
The challenges of keeping up with technological changes and requirements
Relocation of CACHE
From NQF to QCF
Pension Regulator's
"Auto-Enrolment"
Requirement
International Business
FL Joined CACHE
Ofqual Monitoring
Visit
Risk Management: A Case Study
The why of risk management @ CACHE
Risk Management
Motivation
Risk Culture
Risk Management
Process
Risk Management
Evaluation
Risk Management
Motivation
Risk Culture
Risk Management
Process
Risk Management
Evaluation
General Conditions of Recognition – September 2013
Condition A6 - Identification and Management of Risks
Awarding organisations must take all reasonable steps to identify the risk
of the occurrence of any incident which could have an adverse effect.
Where such a risk is identified, the awarding organisation must take all
reasonable steps to:
(a) prevent the incident from occurring or, where it cannot be
prevented, reduce the risk of that incident occurring as far as is
possible, and;
(b) prevent any Adverse Effect that the incident could have were it to
occur or, where it cannot be prevented, mitigate that Adverse Effect
as far as possible.
Complying with the Qualifications Regulator’s Requirements
Risk Management: A Case Study
CC26 – June 2010
Charities and Risk Management
The process of risk identification and control should be aimed at
providing trustees with “reasonable assurance” that all relevant risks
have been identified and are being managed appropriately.
Complying with the Charity Commission’s Requirements
Risk Management: A Case Study
Risk Management
Motivation
Risk Culture
Risk Management
Process
Risk Management
Evaluation
Risk Management: A Case Study
Risk Management
Motivation
Risk Culture
Risk Management
Process
Risk Management
Evaluation
Risk Management
Compliance
Compliance is an integral component of risk management but only a
part of the whole.
The overwhelming emphasis today is on the hazard end of the scale.
Risk is not just about the analysis of what could go wrong.
Risk is very much about what needs to go right.
An Expanded Definition of Risk
CACHE’s motivation for managing risk goes beyond just
meeting its regulatory requirements.
Risk Management: A Case Study
An important discipline for success.
Carried out as an integral part of the strategic development and
implementation process.
Risk comes from the Italian word “risicare”, which means “to dare”.
Daring is the driving idea behind every successful business.
In CACHE’s case, the idea that its qualifications can play a major role
in the achievement of higher standards of care in the UK and abroad.
Focuses on opportunities and well as threats.
As much as possible, we try not to give our risks neutral titles.
E.g. Instead of “Loss in Market Share”, we have “Market Share”.
While we assess the threat of losing market share, we also consider
controls and actions that make us seize opportunities to increase
market share.
Risk Management
Motivation
Risk Culture
Risk Management
Process
Risk Management
Evaluation
Risk Management
Motivation
Risk Culture
Risk Management
Process
Risk Management
Evaluation
Risk Management: A Case Study
“We must all suffer from one of two pains: the pain of
discipline or the pain of regret. The difference is
discipline weighs ounces while regret weighs tons.” ~ Jim Rohn
(Entrepreneur & Author)
“The only alternative to risk management is crisis
management, which is much more expensive, time
consuming and embarrassing.” ~ James Lam
(President, James Lam & Associates, Risk Management Consulting)
Risk Management: A Case Study
The how of risk management @ CACHE
Risk Management
Motivation
Risk Culture
Risk Management
Process
Risk Management
Evaluation
Risk Management: A Case Study
Risk Management
Motivation
Risk Culture
Risk Management
Process
Risk Management
Evaluation
Corporate Risk Management
Establish the Context
Risk Identification
Risk Analysis
Risk Evaluation
Risk Treatment
Corporate Risk Register
Divisional/Team Risk Management
Risk Identification
Risk Analysis
Risk Evaluation
Risk Treatment
Portfolio Development Risk Register
Business Development Risk Register
Customer Service
Risk Register
Resources Risk Register
Top
Do
wn
Bo
tto
m U
p
Risk Management Process
Risk Management: A Case Study
Risk Management
Motivation
Risk Culture
Risk Management
Process
Risk Management
Evaluation
Risk Meetings @ Board level – 4 times a year
Risk Meetings @ Senior Team level – at least once a month
Standing agenda item @ divisional management meetings
Regular one-on-one risk meetings with key managers
Communication and Consultation
Risk Management: A Case Study
Risk Management
Motivation
Risk Culture
Risk Management
Process
Risk Management
Evaluation
Integrated web-based risk management solution
Helps to create value
Sets a framework in which to achieve business objectives
Promotes more systematic decision making
Ensures compliance with legislation and regulation
Enhances visibility, responsibility and assurance
Helps to embed risk management
Allows users to manage their own risks
Alerts management of issues to address at the earliest opportunity
Injects a risk culture into the business
Risk Management: A Case Study
The underlying values and principles of risk management @ CACHE
Risk Management
Motivation
Risk Culture
Risk Management
Process
Risk Management
Evaluation
Risk Management: A Case Study
Risk Management
Motivation
Risk Culture
Risk Management
Process
Risk Management
Evaluation
Visible commitment to risk management from the very top.
Not solely a financial function.
Not just a concern for a select few.
Stitched into the very fabric of day-to-day business
management.
The effectiveness of risk management is dependent on embedding risk
awareness in the wider culture of the business.
Full realisation of the benefits will require sustained long-term effort.
Transparent and inclusive.
Non-bureaucratic procedures.
Rigid procedures and structures can impede good risk management –
either as a result of a ‘box-ticking mentality’ or because managers and
staff believe they do not need to consider risk themselves.
Dynamic, iterative and responsive to change.
An important part of the Induction for new staff.
Risk Management: A Case Study
Risk Management
Motivation
Risk Culture
Risk Management
Process
Risk Management
Evaluation
A Attitude
B Behaviour
C Culture
Shapes
Forms
Influences
Influences
A-B-C Model of Culture
Risk Management: A Case Study
The how of measuring performance of risk management @ CACHE
Risk Management
Motivation
Risk Culture
Risk Management
Process
Risk Management
Evaluation
Risk Management: A Case Study
Risk Management
Motivation
Risk Culture
Risk Management
Process
Risk Management
Evaluation
Risk
Leadership
(RMAT01)
People
(RMAT03)
Risk Policy
& Strategy
(RMAT02)
Partnerships
& Resources
Risk
Management
Processes
(RMAT05)
Handling Outcomes
(RMAT07)
Innovation & Learning
Enablers Results
CACHE Risk Management Assessment Tool (Adapted from the EFQM Excellence Model)
Risk Management: A Case Study
Risk Management
Motivation
Risk Culture
Risk Management
Process
Risk Management
Evaluation
CACHE Risk Management Assessment Tool (Adapted from the EFQM Excellence Model)
Risk Management: A Case Study
Risk Management
Motivation
Risk Culture
Risk Management
Process
Risk Management
Evaluation
CACHE Risk Management Assessment Tool (Adapted from the EFQM Excellence Model)
