Transcript Slide 1

Minimum Contract Level
Support Programme
Risk Management for Partnerships
Chris Bealey, LSIS Partnership Adviser
Terry McHale, Open4learning Partnership
Risk management
Outcomes
• Identify risks associated with partnership working
• Review models of risk management
• Share the experience of an active partnership
implementing risk management.
Model for Risk Management
Model for Risk Management
this approach is designed for a collaborative context.
Partnership Risk Assessment Model (PRAM)
Key Stages
Identifying
Step 1: Identify the resource - Risk Management Plan
Step 2: Partnership Risk Assessment checklist
Analysing
Step 3: Making the assessment
Prioritising
Step 4: Determining high, medium and low risk - Using scoring matrix
Step 5: Making the decision - What is your risk appetite?
Monitoring
Step 6: Monitoring risk
Existing Arrangements and Risk Register
Identifying partnership risks 1- PESTLE
Identifying partnership risks - 2
Partnership Strategic Risk
Control
Poorly defined shared vision and objectives
Corporate objectives of all partners need to be linked to a shared and
agreed joint vision with clearly defined objectives
Local political leadership changes and support for the
partnership declines
Engage members in the debate on partnership and obtain buy-in from all
parties.
Collaborative advantage for working together not clearly
defined
Partners must identify collaborative advantages of working together and
processes needed to ensure a successful partnership.
Policy changes within government and / or partner
organisations.
A partnership will only succeed if it can respond to change; therefore
flexibility is an essential element of the partnership arrangements.
The programme or project will not be attractive to potential
partners
Develop a robust strategic and outline business case that defines the
scope of the partnership. Ensure a marketing exercise has been carried
out as part of the business case and views of the market have been
factored into the partnership development.
Partners do not meet performance targets in a satisfactory or
timely way.
Develop an agreed Performance Management framework.
Encourage joint ownership of problems and solutions, building trust and
cooperation.
No strategic approach to issues of risk, costs and benefits
Define and agree a partnership risk strategy/plan and a comprehensive
approach to dealing with costs and benefits of the partnership.
Identifying partnership risks – 3
Risk Management Criteria
Impact
1
Negligible
2
Marginal
3
Critical
4
Catastrophic
Financial Impact
< £25,000
£25,000 – £75,000
£75,000 - £150,000
£150,000 +
Reputation Risk
Temporary inconvenience
that can be resolved
easily within the
Partnership. No lasting
impact on reputation
May have an impact on
the partnership in the
medium to short term
(up to one month).
Would not lead to a
significant change to the
partnership
Likely to damage the
Partnerships reputation in
the medium term (3 – 6
Months). May lead to
significant changes to the
way the Partnership
operates
Loss of credibility with
key stakeholders
Likelihood
1
Unlikely
2
Possible
Risk scores are calculated as follows:
(Financial Impact + Reputational Impact) x Likelihood = Risk Score
3
Probable
Terry McHale
Open4learning Partnership
A provider’s experience
Open4learning & Risk Management
?? Balanced scorecard approach ??
Inception to “signing-up”
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Commenced preliminary discussions Sep 2010
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Met together Oct 2010
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Established shared values Dec 2010
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Replicated ACTOR by all Dec 2010
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Agreed “Lead” Feb 2011
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Agreed “Protocols to work to” Feb 2011
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Revised protocols to incorporate “Risk” April 2011
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Established & signed SLA June 2011
Risk Management Criteria
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The delivery partner must be compliant with the Common Inspection Framework
(CIF) and have achieved at least a Satisfactory (Grade 3) in Leadership and
Management and at least a Satisfactory (Grade 3) in the Sector Subject Area in
which training is being delivered in respect of their most recent Ofsted/ALI
inspection report.
Any new delivery partners will have produced a graded SAR and QIP and where
a delivery partner has not yet been subject to an Ofsted Inspection the providers
SAR will be used in comparison with the CIF
Potential partners are required to submit their last 3 years audited accounts to
show they are financial stable to contract and partners will also be subject to a
financial credit check prior to contracts being awarded.
Track Record, to include: Health & Safety, Safeguarding and Equality & Diversity
Quality Standards
 Training Quality Standard
 Customer First
 Matrix Standard
 Investor in People
Contractual Considerations –
use of Service Level Agreement and Scorecard
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Liabilities (Employer & Public)
Professional Indemnity cover
Data protection
MLP & NTI considerations
Risk
Quality
Escape clause in SLA
Misuse of funds
Audit(s)
Use of “Scorecard”
Scorecard snippet
Questionnaire Number :
1. Are you a direct Employer of Tutors / Learning Champions?
2. Are Tutors qualified and IFL registered
3. Is there an organisational OTL system in place and are all
tutors part of an OTL system?
Financial Information
4. Do you have a funding Strategy?
Contracts and what is your funding position?
5. Do you have Insurance?
6. Do you have Internal and external audit reports?
7. Do you have 3 years of accounts?
8. Cash flow statements?
9. 3 year budget forecast?
Score
Any questions?
Resources
Support for Collaborative Contracting
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Case Studies
Toolkits:
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Managing Risk
Partnership Planning and Working
Shared Leadership and Governance
Shared Services
Sub-contracting
Quality Management
Sub-contracting (Nov 2011)
Annual planning and operations cycle (Nov 2011)
http://www.excellencegateway.org.uk/page.aspx?o=MCLsupport
Wrapping Up
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We’ll send you evaluation form and a link to the recording
Slides from the seminar will be on the Excellence Gateway
You may be be interested in further support from the LSIS MCL Team.
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A range of resources are available on the Excellence Gateway site
www.excellencegateway.org.uk/MCLsupport
Further web seminar events are planned, you can find details and
registration on events.lsis.org.uk/Pages/Event/Stage1/Events.aspx
If you would like to talk to an MCL Partnership Adviser please send
an e-mail to [email protected]
Minimum Contract Level
Support Programme