Risk Management

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Risk Management
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Outline

• Audit Commissions Trust Practice (TP)
• Our involvement in risk management
• Joint working between the NHSLA and Audit
  Commission
• Driving improvement in risk management
• How we can help
• Any Questions?

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Trust Practice

• What is it?
• Specialists in providing audit and additional
  work to FTs and aspirants (we audit nearly half
  of FTs)
• Part of the wider Audit Commission
• What are the benefits to you?
• Understand the FT regime and its risks
• Familiar with the new NHS commercial environment
• Connected in to wider public sector developments
  through the Audit Commission
• Tailored work to your needs

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Our involvement in risk management

• ALE (Auditor Local Evaluation) approach developed
  to deliver the Use of Resources Score as part
  of Annual Healthcheck and to
• Provide AC with information required to reach a
  Value for Money conclusion for NHS bodies
  (other than FTs)
• Produced assessments for 335 bodies for 2006/07
• AC has embarked on joint working and information
  sharing with both the NHSLA and Healthcare
  Commission

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ALE Internal Control

• How well does the organisations internal control
  environment enable it to manage its significant
  business risks?
• 4.1 - The organisation manages its significant
  business risks
• Key areas assurance framework, risk management
  processes and awareness

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Joint working in practice

• Alignment of NHSLA governance standard criteria
  with
• ALE internal control assurances
• Pilot work at 42 NHS Trusts used by AC auditors
  in 2006/07 ALE assessment
• ALE assessment for 2006/07 to be used by NHSLA
  for bodies selected for review in 2007/08

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ALE scores 2006/07 Risk Management
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What is the key risk management challenge?

• Making RM integrated into business as usual and
  understood across the organisation/as part of all
  staffs responsibility
• Joining up the RM process across the organisation
  to achieve Enterprise Wide Risk Management that
  covers the full breadth of risks.
• Ensuring RM adds value and is not just another
  task that gets in the way of the day job

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Risk management Securing improvement

• Aspirant FTs Auditor Local Evaluation (ALE!)
• FT FEEED at FTs
• Aspirant FTs and FTs SIC and applying HM
  Treasury guidance
• Good practices from other sectors

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Applying HM Treasury Guidance

• Monitors FT Compliance Framework

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How we can help you

• Electronic self assessment Benchmarking
  opportunity
• Independent assessment Stocktake using the HM
  Treasury Assessment Framework
• Share Notable Practice Continuous learning
• Workshops Build capacity by increasing
  awareness, developing your approach and making it
  work effectively in practice
• What would help you?

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To summarise

• So weve covered updates on
• Audit Commissions Trust Practice (TP)
• Audit Commission our involvement in risk
  management
• Joint working between the NHSLA and Audit
  Commission
• Our focus for risk management
• How we can help
• Any questions?

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Richard Percival contact details

• Audit Commission
• 2nd Floor
• No 1 Friarsgate
• 1011 Stratford Road
• Solihull
• B90 4EB
• r-percival_at_audit-commission.gov.uk
• 07837 385366