7. Risk Management
7.1 The University acknowledges the risks inherent in its business, and is committed to managing those risks that pose a significant threat to the achievement of its business objectives and financial health. Detailed guidance on the University’s approach to risk is set out in a separate risk management strategy.
7.2 The Council has overall responsibility for ensuring there is a risk management strategy and a common approach to the management of risk throughout the University through the development, implementation and embedding within the organisation of a formal, structured risk management process.
7.3 In line with this policy, the Council requires that the risk management strategy and supporting procedures include:
- the adoption of common terminology in relation to the definition of risk and risk management
- the establishment of University-wide criteria for the measurement of risk, linking the threats arising from their potential impact and the likelihood of their occurrence
- a decision on the level of risk to be accepted
- detailed regular review at department or support function level to identify significant risks associated with the achievement of key objectives and other relevant areas
- development of risk management and contingency plans for all significant risks, to include a designated ‘risk owner’ who will be responsible and accountable for managing the risk in question
- regular reporting to the Executive Committee of all risks above established tolerance levels
- an annual report from the Executive Committee to Council giving assurance that risk has been properly managed
- an annual review of the implementation of risk management arrangements
- an annual report from Audit Committee on risk.
7.4 Budget Officers must ensure that any agreements negotiated within their specified area of operation with external bodies cover any legal, financial or commercial liabilities to which the University may be exposed. The advice of the Registrar or his authorised representative should be sought where necessary to ensure that this is the case.
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