Risk Management Statement
POLICY G004
Policy Date: February 2010
The Financial Memorandum between the University and HEFCE requires that the Council ensure that the University has a 'sound system of internal financial management and control' and the HEFCE Audit Code of Practice (HEFCE 2002/26) requires that the Audit Committee should provide an
annual report, which should include the committee's opinion on the extent to which the governing body may rely on the institution's internal control system and the arrangements for promoting economy, efficiency and effectiveness. The basis for the report is internal and external audits, using risk assessment as the primary method for an audit programme linked to the University's objectives. These arrangements came into force on 1 August 2002.
The principles of risk management proposed by HEFCE are that:
- The identification and management of risk should be linked to the achievement of institutional objectives;
- the approach to internal control should be risk-based, including an evaluation of the likelihood and impact of risks becoming a reality;
- review procedures must cover business, operational and compliance risks as well as financial risk;
- risk assessment and internal control should be embedded in ongoing operations;
- the governing body, or relevant committee, should receive regular reports during the year on internal control and risk; and
- the principal results of risk identification, evaluation and management review should be reported to, and reviewed by, the governing body.
The Faculty of Education is in the process of developing risk management processes in the Faculty and more information is available from the Secretary of the Faculty.
Review Date: July 2011
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