Risk Management in a Policing Environment

1. Risk Management in a Policing Environment ALARM South East Regional Conference Wednesday, 3 November 2004 Nick Chown

2. Outline of PresentationbyNick Chown, Director of Risk Management, Metropolitan Police Service • Some background information • Risk management strategy and process • Linking with the National Intelligence Model • Role of Corporate Risk Management Group • Examples of where RM has added value • Question and answer session

3. The Met – performance Mission: To make London the safest major city in the world Commissioner - “The Met is the agency of first and last resort”

4. Gross annual revenue budget of £2.9bn Approx 25% of total service budget for England and Wales 44,300 Employees 30,000 police officers 12,000 police staff 1,500 PCSOs 800 Traffic Wardens 650 buildings in 300 locations valued at £1.7bn Over 5,000 vehicles Over 20,000 desktop computers Over 640,000 payslips produced per year 34,000 telephones 30,000 radios The Met - scale

5. MPS – Management Board etc • Commissioner • Deputy Commissioner [DCC] • Diverse set of teams • Strategic Development [DCC2] • Corporate Risk Management Group [DCC2(7)] • Four Assistant Commissioners • Territorial Policing, Specialist Crime, Specialist Operations and Human Resources • Director of Resources • Director of Public Affairs

6. Authority Full Authority Co-ordination & Policing Committee (COP) Finance Committee Corporate Governance Committee (previously Audit Panel) Service Management Board Corporate Governance Strategic Committee Strategic H&S Committee Other strategic committees Resilience & BC committees Inspection Co-ordination Group The Met – governance

7. The Metropolitan Police District

8. Risk management – the background • Advent of Metropolitan Police Authority • Willis review of risk management • Central risk management team • Director of risk management • Securing senior buy-in • Integrated risk management strategy • Risk management framework & user guide • Local sponsors and facilitators • Programme of mainstreaming work

9. The Met – integrated risk management strategy • Based on ALARM ‘toolkit’ approach • To effectively manage potential opportunities and threats to the Authority and the Service achieving their objectives involving: • Integration of risk management into the culture • Raising awareness of need for risk management • Enabling response to changing conditions • Introduction of robust framework • Minimisation of cost of insurable risk

10. Mainstreaming risk management in planning Strategic RM NIM / PPAF Annual Plan EM Self-Assessment Diversity EM S-A Projects Inspections Audits Reviews Ad hoc Etc. Plan Objectives Risk – the chance of something happening that will have an impact on objectives Monitor and Review Actions

11. Mainstreaming risk management in planning Strategic RM NIM / PPAF Annual Plan EM Self-Assessment Diversity EM S-A Projects Inspections Audits Reviews Ad hoc Etc. Identify Risks (Threats, Hazards) Plan Objectives Risk – the chance of something happening that will have an impact on objectives Evaluate Risks Likelihood and impact Monitor and Review Actions Risk Controls Risk Register Risk Reporting

12. Mainstreaming risk management in planning Strategic RM Corporate Strategic Assessment Identify Risks (Threats, Hazards) Plan Objectives Risk – the chance of something happening that will have an impact on objectives Evaluate Risks Likelihood and impact Corporate Risk Profile Monitor and Review Actions Risk Controls Strategic Intelligence Assessment Business Risk Profile

13. National Intelligence Model Performance Management Business Managing Crime Criminals Disorder Problems Government & Local Objectives Business Excellence Model Outcomes Outcomes Community Safety Reduced Crime Controlled Criminality Controlled Disorder Prioritise Intelligence Work TASKING & COORDINATION PROCESS Production of Intelligence Products Tasking & Coordination Meetings Acknowledgements: National Criminal Intelligence Service Analytical Products Knowledge Products System Products

14. NIM tasking and coordination The criminal intelligence paints the picture • CONTROL STRATEGY • comprises • PRIORITIES FOR • INTELLIGENCE • PREVENTION • ENFORCEMENT Requires • Strategic tasking and • Coordination group • Resourcing the needs • Setting priorities • Identifying policy needs • Tactical tasking and • coordination group • Applying the tactical menu • Responding to new needs • Checking still on course Acknowledgements: National Criminal Intelligence Service

15. National Intelligence Model – business risk Performance Management Business Managing Business Risk Human Rights Life & limb Reputation Service Delivery Finances Government & Local Objectives Business Excellence Model Outcomes Outcomes Community Safety Reduced Crime Controlled Criminality Controlled Disorder Prioritise Business Intelligence TASKING & COORDINATION PROCESS Production of Business Risk Profiles Tasking & Coordination Meetings Analytical Products Knowledge Products System Products

16. NIM tasking and coordination The business intelligence paints the picture • CONTROL STRATEGY • comprises • PRIORITIES FOR • INTELLIGENCE • PREVENTION • CONTINUITY Requires • Strategic tasking and • Coordination group • Resourcing the needs • Setting priorities • Identifying policy needs • Tactical tasking and • coordination group • Applying the tactical menu • Responding to new needs • Checking still on course

17. The Metropolitan Police risk management spectrum NIM Identify Identify Assess Evaluate Control Controls Measure Measure Report Report OPERATIONAL Community/Partnerships Public Order Management Serious Crime IT & Communications PEOPLE Contingency Planning LEGAL & POLITICAL Criminal Justice Legal Liability Terrorism Crime Prevention Volume Crime Complaints/ integrity Diversity Financial Risk Business Continuity Planning HR Health & Safety Political Risk Training Community PROPERTY PSD Motor Fleet Self Insurance Third Party Insurance FINANCIAL Natural disaster Alternative Risk Transfer Security Fire

18. All Encompassing NIM ‘Risk’ Coverage … Identify Identify Assess Evaluate Control Control Measure Monitor Report Report OPERATIONAL NIM NIM Serious Crime Public Order Management Community/Partnerships PEOPLE IT & Communications LEGAL & POLITICAL Contingency Planning Legal Liability Terrorism Crime Prevention Volume Crime Financial Risk NIM Diversity Political Risk Business Continuity Planning HR NIM Health & Safety Training Community PROPERTY PSD Motor Fleet Self Insurance Third Party Insurance FINANCIAL Natural disaster Alternative Risk Transfer Security Fire

19. Mission Vision Internal Pressures External Pressures MPS Policing Plan Change Mgmt Local Plans Risk management helps achieve the MPS mission

20. Mission Vision MPS Policing Plan Change Mgmt Local Plans Plans can be blown “off course”

21. Mission Vision MPS Policing Plan Change Mgmt Local Plans Plans can be blown “off course”

22. Mission Vision MPS Policing Plan Change Mgmt Local Plans NIM Business Risk NIM Crime Risk management helps keep plans “on course”

23. New NIM business intelligence products Business Risk Profiles PESTELGO Issue Analyses • Business Intelligence • Accurate picture of the business • What is actually happening on the ground • Nature and extent of problems • The trends • Where the main threats lie Strategic Intelligence Assessments Corporate Risk Profile Corporate Strategic Assessment

24. Current approach is often fragmented and inconsistent Reputation Risk Insurance Risk Assessment Inspection & Review Legal Issues Compliance Health& Safety BCP / Security Controls Resilience

25. Corporate co-ordination role Early Warning Inspection & Audit Resilience & Business Continuity Control Environment Physical Security Embedding in Operational Process Legal Issues Embedding in Support Group Process Embedding a ‘Managed Risk’ Culture Self-Insurance Risk Profiling Insurance Health & Safety Reputation Risk Information Security Risk Assessment Compliance

26. Structure / proactive / focus / solutions Setting standards for risk management Business continuity management lead Insurable risk management / insurance Programme and project input Advice and guidance on risk matters Support to various committees Some other elements of corporate role

27. Reputation risk management • Metropolitan police ‘brand’ • Reputation as impact • Business risk management process standard impact assessment • MPS (gold/silver/bronze) reputation risk management system • Diamond Risk Management Committee

28. Impact Scale Impact categories Human Rights & Diversity Life & Limb Reputation Performance Financial Very Low 1 No differential diversity impacts or HR interference No injuries No discernible damage to MPS reputation No discernible Impact on service delivery On or within 1% of total budget Low 2 Some justifiable impacts / interference Slight injuries only Minimal damage to MPS reputation Impact on service delivery of little/ no concern to stakeholders Between 2% and 5% of total budget Medium 3 Limited unjustifiable impacts / interference Major injuries or single fatality Limited damage to MPS reputation Impact on service delivery relevant and noticeable by stakeholders Between 6% and 10% of total budget High 4 Significant unjustifiable impacts / interference Some fatalities or many major injuries Major damage to MPS reputation Major impact on service delivery Between 11% and 20% of total budget Very High 5 Serious unjustifiable impacts and/or interference Many fatalities Catastrophic damage to MPS reputation Catastrophic impact on service delivery In excess of 20% of total budget Impact assessment

29. Added value from risk management • Bichard project • Business cases • Overseas travel policy • Insurance invalidation indemnity • Diversity Directorate restructuring • C3i risk management pilot • First steps towards ‘virtual captive’ • Human rights & diversity impact assessment • SO16 physical security unit • CO11 community impact assessments • Area homicide review teams

30. Q&A • Any questions?