Newcastle University - Strategic Risk Register (December · PDF fileNewcastle University - Strategic Risk Register (December 2012) Risk, Description and Owner Controls Required Control

Newcastle University - Strategic Risk Register (December 2012)

Risk, Description and Owner

Controls Required

Control In Place and Working

Evidence of Control in Place

Control Owner

Overall Control Status & Proposed additional control

measures STRATEGIC OBJECTIVE 1: TOP 20 IN THE UK FOR RESEARCH

SR1A Failure to publish adequate research outputs Risk owned by Nick Wright Triggered by: 1. Failure of PDR framework 2. Resistance from staff 3. Management inaction 4. HEFCE QR funding removed

for 2* research Consequences: 1. Reduced funding after next REF 2. Loss of reputation

1. Monitoring of research outputs through MyImpact. 2. Comprehensive system of Performance & Development

Review (PDR) in place and fully implemented.

In part No

MyImpact IT System, Monitoring by URC and EB SAP HR System

G Docherty, T Roskilly, M Whitaker C Day, S Homans, C Harvey

Overall Status:

AMBER 1. Work towards the REF raises concerns given the removal of 2* funding. 2. Securing a much higher coverage of the PDR system is a key management objective.

KPI: Research Output - Impact Relative to World 2001 – 2010

Impact relative to world is defined as “the percentage of documents that have been cited relative to the total number of documents cited in the world (a value greater than 1 indicates the impact is better than the average for the world).”

Progress over Time: Problematic/SATISFACTORY/Good

RISK SCORES

IMPACT LIKELIHOOD TOTAL

GROSS 4 4 16 NET 4 3 12

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Controls Required



Control Owner



SR1B Failure to obtain new research grants and contracts Risk Owned by Nick Wright Triggered by: 1. Reduction in budgets for

research support 2. Failure to develop research

initiatives 3. Failure to respond to changes in

respective research markets Consequences: 1. Loss of revenue 2. Underutilisation of resources

1. Monitoring and benchmarking of awards and income through

University Research Committee and EB.

2. Continued monitoring of changes in priorities and delivery plans of major funder at Faculty and institutional level.

3. Faculty Plans.

Yes

Yes

Yes

Research Committee Papers Research Committee Papers Planning Process

D Hill C Day, S Homans, C Harvey C Day, S Homans, C Harvey

Overall Status:

AMBER Status reflects national budgets being frozen and changing priorities of funders evidenced through delivery plans. Science budget now set.

Newcastle University – Research Grants and Contract Income


RISK SCORES


GROSS 4 4 16 NET 4 3 12

07/08 08/09 09/10 10/11 11/12RG&CI £75.4m £84.5m £85.2m £88.5m £86.0m

50

60

70

80

90

100

07/08 08/09 09/10 10/11 11/12

£mill

ions

Research Grants and Contract Income

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Controls Required



Control Owner



SR1C Failure to recover sufficient research income Risk owned by Chris Day, Steve Homans and Charles Harvey Triggered by: 1. Failure to secure sufficient

research contribution 2. Failure to price funding

applications appropriately 3. Failure to understand our cost

base 4. Change in funder policies to

reduce contribution 5. Overemphasis on income

sources where sponsors will not fund at approaching FEC

Consequences: 1. Insufficient income generated to

support renewal of research infrastructure

2. Inability to contribute to general support

1. Clear understanding of the research cost base

2. Robust application costing and pricing system in place

3. Clear guidance to academic staff on the importance of contribution and margin on research income to their Unit/Faculty

4. Clear policy for using contribution and margin from research

awards for the human and capital infrastructure in a way that incentivises staff and supports the strategic objectives of the Faculty as a whole

5. Planning and monitoring process in place to revise income

portfolio to favour sponsors funding close to FEC

Yes

Yes

Yes

Yes

Yes

TRAC return to HEFCE MyProjects Proposals system Guidance on web, minutes of FEB (FMS) Capital Capacity Fund in SAgE, Sustainability pot in FMS and HaSS Faculty plans, KPIs set and monitored in Annual planning meetings (FMS and SAgE)

C Day, S Homans, C Harvey C Day, S Homans, C Harvey C Day, S Homans, C Harvey C Day, S Homans, C Harvey C Day, S Homans, C Harvey

Overall Status:

GREEN

KPI


RISK SCORES


GROSS 3 4 12 NET 3 4 12

2007/08 2008/09 2009/10 2010/11 2011/12Total University contribution £000 16,177 18,932 20,521 21,507 17,407Total University contribution 21% 22% 24% 24% 20%Charity QR £000 4,192 4,176 4,681 4,958 5,035

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Controls Required



Control Owner


measures STRATEGIC OBJECTIVE 2: TOP 20 IN THE UK FOR STUDENT SATISFACTION

SR2A Failure to recognise student expectations and to deliver on the student experience Risk owned by Suzanne Cholerton Triggered by: 1. Lack of good quality teaching

and IT facilities 2. Teaching that does not support

the student learning experience 3. Staff not engaging with students 4. Failure to provide sufficient

good quality student accommodation

5. Failure to deliver value for money

Consequences: 1. Poor performance in NSS, ISB,

PRES, PTES and League Tables 2. Failure to attract students in

sufficient numbers and of sufficient quality

3. Reputational damage 4. Poor continuation rates

1. Clear and owned Learning, Teaching and Student Experience

Strategy. Learning, Teaching and Student Experience Strategy will be updated during 2012/13 academic year.

2. Implementation of Newcastle University Offer.

3. Local and University-wide systems for student consultation and

feedback established. 4. High quality services provided for students – sport, library,

computing, student progress service, student wellbeing service. 5. Investment planned for student residential accommodation 6. Opportunities for employment related skills development open to

all.

Yes Yes Yes Yes Yes Yes

Learning, Teaching and Student Experience Strategy From Jan 2013 continuing activities will be monitored by ULTSEC governance structure Institutional Student Representation Policy and Project 2012 Scorecard for Teaching and Learning (until Dec 2012) Annual Plans published and monitored by ULTSEC Accommodation Strategy Careers Service Annual Report monitored by ULTSEC

S Cholerton S Cholerton S Cholerton J Strachan M Hunter N Keeley

Overall Status:

AMBER The status reflects uncertainties arising from new UK fee arrangements

KPI: National Student Survey Overall Satisfaction Scores

2008 2009 2010 2011 2012

Question 22. Overall, I am satisfied with the quality of the course. 86% 87% 87% 89% 89%

Newcastle rank joint 10th for overall satisfaction for the comparator group of 35 institutions. Newcastle overall satisfaction target is 90%.

Progress over Time:

Problematic/SATISFACTORY/Good

RISK SCORES


GROSS 4 4 16 NET 4 3 12

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Controls Required



Control Owner



SR2C Failure to achieve widening participation benchmarks and Access Agreement milestones Risk owned by Suzanne Cholerton Triggered by: 1. Decreasing numbers of

appropriate student applications 2. Loss of or reduction in targeted

funding 3. Change to fee regime 4. Change to HEFCE number

controls Consequences: 1. Reputational damage 2. Loss of W.P. income and some

threat to fee income 3. Inability to charge higher fees

for Home Undergraduates

1. Widening Participation Strategy and Widening Participation

Strategic Assessment (WPSA) in place and updated.

2. Strong and well-established PARTNERS Programme and partnerships with 113 schools and colleges. Strong links with others in broad Northern region (through Graduate Ambassadors) and plans for growth.

3. Setting and agreeing WP targets for Schools in context of

HEFCE number controls

4. Admissions Policy reviewed and revised annually.

Yes

Yes Yes

Yes

2013 Access Agreement; WPSA; Admission of students through schemes and WP progress

External moderator and evaluation reports; Number of partnerships, Student & Grad Ambassadors

Planning and delivery of 2013 Admissions Strategy (Agreed ABB+ strategy doc); faculty and School WP targets UG Admissions Policy and Minutes of Fair Access Committee

L Braiden

L Braiden

L Braiden, S Homans, C Harvey, C Day

K Hind

Overall Status: GREEN

LPN intake has been broadly in line with HESA benchmarks since 2005-06. Other WP benchmarks (state schools; NS-SEC 4-7) more challenging. All WP benchmarks significantly exceeded for regional intake. University strategy for recruitment from outside the region is to be a net importer of talent to the North East. Many of the factors that affect WP are outside University control and influence e.g. structural inequalities.

KPI: Young full-time first degree entrants from low participation neighbourhoods

2006/07 2007/08 2008/09 2009/10 2010/11

Newcastle 6.6 6.6 6.3 7.9 7.5 Benchmark 6.6 7.4 6.8 7.0 7.0


RISK SCORES


GROSS 4 4 16

NET 4 3 12 6.0

6.5

7.0

7.5

8.0

2006/07 2007/08 2008/09 2009/10 2010/11

% from low participation areas

Newcastle

Benchmark

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Controls Required



Control Owner



SR2B Failure to maintain teaching quality and standards Risk owned by Suzanne Cholerton Triggered by: 1. Failure to commit to the

Newcastle Offer 2. Poor performance of academic

staff 3. Loss of key academic staff 4. Loss of teaching facilities 5. Poor teaching facilities 6. Failure to meet external

accreditation standards 7. Failure of quality assurance

processes 8. Failure to implement November

2009 QAA Audit recommendations

Consequences: 1. External accreditations withdrawn 2. Damage to reputation 3. Difficult to attract students 4. Poor NSS scores

1. Clearly articulated and owned Learning, Teaching and Student

Experience Strategy. Learning, Teaching and Student Experience Strategy will be updated during 2012/13 academic year.

2. Quality assurance mechanisms in place for internal and external

validation. 3. Implementation of student module evaluation system 4. Comprehensive system of Performance and Development Review

(PDR) and effective management of staff in place. 5. Implement Action Plan for QAA Institutional 2009 Audit

recommendations. Mid-Cycle Follow-Up to be submitted to QAA by 10 Dec 2012.

6. Work with schools to improve NSS performance.

7. Introduce Newcastle ‘Offer’ scorecard at end of academic year

2012/13

Yes Yes No Yes Yes Yes No

Learning, Teaching & Student Experience Strategy ULTSEC minutes Steering Group and Scorecard SAP HR System Action Plan delivered and monitored NSS Scores recorded on Planning Website ULTSEC minutes

S Cholerton E Clewlow J Strachan C Day, S Homans, C Harvey E Clewlow S Cholerton C Day, S Homans, C Harvey E Clewlow

Overall Status:

GREEN

Student module evaluation system underway

KPI: National Student Survey – Overall School Satisfaction

Council Key Performance Indicator Target is for all schools to have a 90% minimum for Overall Satisfaction.

• 2010: 19 schools with over 90%, 16 with over 80%, 1 with over 70%, 3 with over 60% and 1 under 50%.

• 2011: 3 schools with 100%, 17 with over 90%, 15 with over 80% and 6 with over 70%.

• 2012: 2 schools with 100%, 19 with over 90%, 15 with over 80%, 3 with over 70%, 2 under 70%


RISK SCORES


GROSS 4 4 16 NET 4 2 8

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Control Owner


measures STRATEGIC OBJECTIVE 3: FOCUS ON THREE SOCIETAL CHALLENGE THEMES: AGEING; SOCIAL RENEWAL; SUSTAINABILITY

SR3A Failure to develop Newcastle Science City in a manner consistent with the Strategic Overview Risk owned by Nick Wright Triggered by: 1. Disagreements with partner 2. New national policies Consequences: 1. Reputational damage 2. Unsustainable estate 3. Significant financial losses

1. Formal partnership structure established with the City. 2. University Special Interest Group containing members of

Council.

Yes Yes

Two Page Document ‘Science City Formal Company Structure,’ 6 month reports to Council Special Interest Group

N Wright N Wright

Overall Status:

GREEN The relationship with the City Council is strong. Need to appoint a new CEO of Science City Co.

KPI: Research Income from Industry (£000s)

2007/08 2008/09 2009/10 2010/11 2011/12

UK industry, commerce & public corporations 2,789 4,154 4,375 5,864 3,911

EU industry, commerce & public corporations 288 506 571 647 856

Non-EU industry, commerce & public corporations 1,348 1,468 1,088 992 1,583

TOTAL 4,425 6,128 6,034 7,503 6,350


RISK SCORES


GROSS 4 4 16 NET 3 3 9

0

2,000

4,000

6,000

2007/08 2008/09 2009/10 2010/11 2011/12

UK

EU

Non-EU

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Controls Required



Control Owner



SR3C Failure to secure and exploit intellectual property assets Risk owned by Nick Wright Triggered by: 1. Loss of IP asset to third party 2. No use made of IP asset Consequences: 1. Missed reputation enhancement

opportunities

1. Policies to protect patents approved and communicated. 2. Angel Alliance established with Durham.

3. Faculty Deans appointed to lead on the processes supported by Research and Enterprise Services.

Yes Yes Yes

Patents approved and communicated Angel Alliance Web Page Patents and Spin Offs

D Robertson N Wright D Robertson

Overall Status:

GREEN

KPI: Patents Filed/Granted and Company Spin Outs

2007/08 2008/09 2009/10 2010/11 2011/12 Number of Patents Filed 21 21 22 20 23 Number of Patents Granted 7 6 3 2 4

2007/08 2008/09 2009/10 2010/11 2011/12

Number of new Spin Out companies created

5 3 5 5 2


RISK SCORES


GROSS 3 3 9 NET 3 3 9

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Controls Required



Control Owner



SR3B Failure to gain institutional buy in to the societal challenge themes concept. Risk owned by Nick Wright Triggered by: 1. Failure to communicate issues 2. Staff resistance Consequences: 1. Failure to achieve strategic

objective 2. Loss of partnership opportunities 3. Reputational damage

1. Theme steering committees to oversee development of each

theme in launch year. 2. Strategic funds available to support initiatives.

3. Faculty management structure established for each theme from year 2 on.

Yes Yes Yes

The theme for the year Annual budget round Institute structure in faculties

R Draper R Dale C Day, S Homans, C Harvey

Overall Status:

AMBER Need to appoint new Director of NIReS

Societal Challenge Themes The identification and establishment of 3 themes;

• Ageing– Featured the Changing Age campaign, which is now being sustained in the Faculty of Medical Sciences. Institute for Ageing and Health has been the driving force behind the vision for a unique Campus for Ageing and Vitality.

• Sustainability – Led by SAgE Faculty. Newcastle Institute for Research on Sustainability (NIReS) established.

• Social Renewal – Led by HaSS Faculty. Newcastle Institute for Social renewal created as a hub for research activity.


RISK SCORES


GROSS 3 4 12 NET 3 2 6

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Control Owner


measures STRATEGIC OBJECTIVE 4: A SIGNIFICANT INTERNATIONAL, NATIONAL AND REGIONAL PROFILE AND REPUTATION

SR4B Failure to maintain academic and financial viability of the NUMed Malaysia campus Risk Owned by Chris Day Triggered by:

1. Failure to meet recruitment targets and maintain financial viability

2. Failure to achieve GMC and MMC accreditation

3. Failure to provide student accommodation

4. Failure to recruit and retain appropriate academic staff including a failure of succession planning

Consequences:

1. MBBS course in Newcastle loses GMC accreditation

2. Reduced fee income 3. Inability to deliver the course 4. Loss of reputation 5. Poor student satisfaction

1. Agreement with GMC to accredit programme. 2. Devise appropriate HR policies to facilitate the appointment of

academic staff to work in Malaysia. 3. Clear marketing strategy and timely student recruitment

campaigns 4. Completion of student accommodation in time for open days

and visits 5. Staff recruitment and succession planning needs identified and

substantial succession planning achieved.

6. Development of additional courses (e.g. Biomedical Sciences,

Masters programmes) at marginal cost

No

Yes

Yes

Yes

Yes

No

Correspondence with GMC, Visit reports HR policies for staff overseas NUMed Steering Group documents and minutes Accommodation now substantially complete and students have moved in NUMed Advisory Group and Steering Group minutes NUMed Steering Group minutes, FMBSG business cases

C Day, R Barton Ex. Dir. Of HR L Smith, R Jordan R Jordan R Jordan, R Barton C Baldwin (UG); B Hirst (PG)

Overall Status:

AMBER Accreditation risk is being managed proactively. Good recruitment in September 2012 – 118. On track for first additional courses to be delivered in 2013 with a further course in 2014

KPIs 1. Accreditation by GMC and MMC (5 years from start of course): in active dialogue with GMC and MMC, proceeding well. 2. Student intake:

2009 target 2009 actual 2010 target 2010 actual 2011 target 2011 actual 2012 target 2012 actual 40 24 40 40 100 57 100 118


RISK SCORES


GROSS 3 5 15 NET 3 3 9

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Controls Required



Control Owner



SR4C Failure to maintain the academic and financial viability of the Singapore campus Risk owned by Steve Homans Triggered by: 1. Failure to appoint a Dean

(Singapore) 2. Failure to appoint academic staff to

teach in Singapore 3. Failure to recruit students 4. Failure to deliver parity of

experience for staff and students 5. Failure to establish effective

governance structure 6. Inconsistent approach across

various subject areas 7. Failure to maintain a positive

working relationship with SIT 8. Failure to exercise proper financial

control 9. Lack of consistent Health & Safety

practice 10. Failure to establish coherent and

flexible support for Singapore activities in Newcastle

Consequences: 1. Damage to reputation 2. Financial losses

1. Appoint a Dean (Singapore) with significant academic standing and

skills to manage an offshore campus and relationship with SIT and other stakeholders in Singapore and the region.

2. Devise appropriate HR policies to facilitate the Appointment of academic staff to work in Singapore.

3. Appoint Directors of operations for each subject grouping in order to provide a lead academic.

4. Appoint a lead academic with responsibility for the inculcation of the ‘Newcastle way’ to academic staff.

5. Appoint a lead administrator to oversee support staff and to ensure appropriate policies and controls are in place.

6. Policies to maintain a student experience which is commensurate with that of students studying in Newcastle.

7. Deliver an attractive package of tuition to Singapore applicants at open days and recruitment events.

8. Develop satisfactory financial controls on expenditure.

9. Governance and management structures across various programmes and campuses in Singapore and Newcastle in place.

10. Development of a coherent Health & Safety Policy across all sites

11. Review of support required including development of procedures and approvals

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

HR record

HR policies for staff overseas HR record

HR record

HR record

Policies and Student feedback/surveys

Recruitment documentation

Financial protocol, audit reports

Governance structure, Steering Group minutes

Faculty Safety Committee & NU-SIT Steering minutes

NU-SIT Steering Group, Singapore Operational Group minutes

S Homans Ex Dir.Of HR

HoS

S Homans

J Golightly

S Homans S Homans R Dale S Homans S Homans J Golightly

Overall Status:

GREEN

KPI: Student Numbers

o Undergraduate and taught postgraduate numbers in Singapore [Target 580 undergraduates by 2012/13 and 650 by 2013/14 and 700+ in 2014/15; 75 PGT students in 2012/13 and 150 by 2013/14] ACTUAL numbers 2012: 470

o Research postgraduate numbers Singapore [Target– five postgraduates in 2012/13 rising to 10 in 2013/14 and 20 in 2014/15]

Progress over Time:


RISK SCORES


GROSS 3 4 12 NET 3 3 9

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Controls Required



Control Owner



SR4A Failure to develop a significant international profile Risk owned by Ella Ritchie Triggered by: 1. Failure to leverage reputational

capital from our diverse international activity

2. Failure to provide sufficient governance and support services for international projects

3. Failure to capitalise on SIT initiative

4. Failure to develop NUMED Malaysia as a high quality international branch medical campus

Consequences: 1. Loss of revenue.

1. Strategic framework for internationalisation agreed. 2. International Executive Group co-ordinating and tracking

activity to ensure a “One University” approach. 3. Use membership of the Russell Group, UUK International and

Europe Board and EUA to leverage international profile. 4. Business case procedures used for all international projects. 5. Ensure that SIT project delivers programmes and complies

with QA. 6. Ensure NUMed Malaysia is developed within budget, meeting

GMC and other regulatory requirements and with operational integration with the Faculty.

7. Business partnership with INTO.

Yes Yes Yes Yes Yes Yes Yes

The international strategy International Executive Group Minutes Membership of these groups FMBSG and EB Monitoring process Minutes of the SIT Project Monitoring Minutes of the Board meetings Performance of the Joint Venture. regular reports to EB and Council

E Ritchie E Ritchie E Ritchie R Dale E Ritchie, S Cholerton R Jordan, E Ritchie AC Stevenson

Overall Status:

AMBER

1. Fall in THE World League Table is disappointing 2. Need improved communications about international activities – linked to PR.

KPI: Times Higher Education (THE) World University Rankings

• Newcastle World Rank 2011-12: =180th. Overall score 2012/13: 48.6 • Newcastle World Rank 2011-12: 146th. Overall score 2011/12: 47 • Newcastle World Rank 2010-11: 152nd. Overall score 2010/11: 51.2

• Newcastle World Ranking on International Outlook 2012 -13: 52nd Overall score 2012/13: 74.4 • Newcastle World Ranking on International Outlook 2011 -12: 48th. Overall score 2011/12: 76.2 • Newcastle World Ranking on International Outlook 2010-11: 37th. Overall score 2010/11: 80.5


RISK SCORES


GROSS 4 3 12 NET 4 2 8

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Control Owner



SR4D Failure to maintain effective relationships with key external stakeholders Risk owned by Ella Ritchie Triggered by: 1. Incidents involving students 2. Failure to manage NHS

partnership 3. Failure to manage PR effectively 4. Political pressures Consequences: 1. Strained relationships with

Community stakeholders 2. Problems with joint working or

approval processes

1. Information provided to students and student bodies on

expected standards of behaviour. 2. Liaison mechanisms with Newcastle City Council on

contentious issues. 3. Close working relationships established with NHS partners

with regular meetings and exchange of information. 4. Dean of Clinical Medicine and Dean of Translational Research

posts established specifically to facilitate the ongoing relationship with the NHS.

5. Proactive PR arrangements.

Yes Yes Yes Yes Yes

The number of Student Disciplinary Cases Monthly University/City Council Meetings Newcastle Biomedicine joins the University with the Newcastle Hospitals NHS Foundation Trust Deans posts to be filled Number of positive news stories

J Strachan E Ritchie C Day C Day A Kelly

Overall Status:

GREEN Increasingly good relationships over time with city.

KPI: Number of Monthly Media Stories (through Google News) for selected comparators

October 2011 October 2012 Newcastle 659 2,740 Durham 324 607 Leeds 433 1,560

Liverpool 222 642 Manchester 418 976 Nottingham 363 2,130

Sheffield 249 2,570 York 446 455

Progress over Time:

Problematic/Satisfactory/GOOD

RISK SCORES


GROSS 3 3 9 NET 3 2 6

• Media coverage cannot be restricted to positive stories.

• The coverage may include items relating to overseas universities with the same name.

• There may be some key word 'aggregating' - the search engine will sometimes collate a number of stories on one subject and only include one link, whilst at other times, each story will have a separate link. This appears to be random and will therefore randomly affect results.

• Levels of coverage have increased significantly this year (2012) due to the proliferation of web-based media.

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Controls Required



Control Owner


measures STRATEGIC OBJECTIVE 5: FINANCIAL AND ENVIRONMENTAL SUSTAINABILITY

SR5I Failure to meet home student recruitment targets Risk owned by Suzanne Cholerton Triggered by: 1. Higher tuition fees 2. Lack of understanding of the

new student support arrangements

3. Over recruitment against core quota and inadequate recruitment of high quality students

4. Poor performance in newspaper league tables

Consequences: 1. Reduced fee income 2. Potential to fall out of contract

range with HEFCE 3. Fines from HEFCE for over

recruitment of home students

1. Coherent and robust marketing activity and strategic positioning. 2. UG and PG Admissions performance regularly monitored. 3. Planning process for student number targets in place. 4. Access Agreement with OFFA to be permitted to charge more

than £6,000 for FT UG.

5. Agreed recruitment and admissions strategy in light of HEFCE numbers controls

6. Development of an overarching Student Recruitment Strategy

Yes Yes Yes Yes Yes No

Annual Service Strategic Plan/ operational plans Quarterly Reports to EB; Minutes of UG Admissions Monitoring Group; PG Monitoring Group. Student Planning Annual Round (Faculty spreadsheets). 2013 Access Agreement approved Strategy is being delivered (‘ABB+’ strategy document and faculty quota and WP targets) Student Recruitment Strategy

L Braiden L Braiden, J Strachan A C Stevenson L Braiden L Braiden, S Homans, C Harvey, C Day

Overall Status:

AMBER This is the major focus of the University’s senior management at the present time. Overarching Student Recruitment Strategy (covering Home / International / UG and PG) under development (for completion early 2013)

KPI: Number of Home New Entrant Students (from registration reports as at November 26th)

Actual

2011/12 Target

2012/13 Registered 2012/13

Target Vs Registered

UG 3,883 4,294 3,699 -595 PGT - FT 871 827 767 -60 PGT - PT 340 426 332 -94 PGR - FT 336 404 341 -63 PGR - PT 42 56 35 -21 Total 5,472 6,007 5,174 - 833


RISK SCORES


GROSS 5 4 20 NET 4 4 16

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Controls Required



Control Owner



SR5A Failure to maintain a financially robust pensions provision Risk owned by Richard Dale Triggered by: 1. Improving mortality trends 2. Failure to manage schemes

effectively 3. Sustained downturn in equity

markets 4. Failure to manage pay trends

and/or promotional drift 5. Failure to reform scheme rules 6. Early retirements creating

unfunded pressure on schemes Consequences: 1. Significant and unaffordable

increase in the University’s cost base

2. Dispute with the Pensions Regulator

1. Regular actuarial valuations of both national (USS) and local

(RBP) schemes.

2. Strong University covenant to RBP.

3. RBP funding recovery plan to be agreed with the Pensions Regulator

4. Regular review of RBP investment strategy and performance by Trustees and University

5. Changes in pension costs to be included as key sensitivity for

financial planning and budget setting exercises. 6. Long term strategy reviews for RBP including impact of

introduction of stakeholder pensions.

7. Work with Employers’ Pension Forum to influence management and development of USS scheme

Yes Yes No Yes Yes Yes Yes

Actuarial Value PWC Report Funding Recovery Plan Minutes of Investment Strategy Group Annual Financial Planning Guidelines n/a USS structural changes

R Dale R Dale R Dale R Dale, S Wilmot A Bell R Dale, V Johnston R Dale, V Johnston

Overall Status:

AMBER 3. RBP actuarial deficit £4.7m at 1/8/11. 15 year recovery plan submitted to the Pensions Regulator and waiting for approval. Increased contribution for employer and employees implemented. 6. Auto enrolment due to be introduced in April 2013. 7. USS structural changes introduced October 2011 including 1% increase in employee contributions and introduction of CARE based scheme for new entrants. These changes are expected to eliminate the deficit within a 10 year recovery period.

KPI: RBP and USS Actuarial Valuations

RBP: 31 July 2010 £7.3m deficit (5% of liabilities) 31 July 2011 £4.7m deficit (3% of liabilities)

USS: 31 March 2011 £2.9bn deficit (8% of liabilities)


RISK SCORES


GROSS 5 4 20 NET 4 3 12

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Controls Required



Control Owner



SR5B Failure to maintain financial viability Risk owned by Richard Dale Triggered by: 1. Reduction in HEFCE funding 2. Failure to manage cost base,

notably pay inflation 3. Failure to meet student

recruitment targets (home and international).

4. Failure in financial management or internal controls

5. Loss of research grants or commercial income

6. Failure to manage risk on cash investments

Consequences: 1. Cuts in services and activities 2. Breach of banking covenants

1. Clearly articulated and owned financial strategy which maintains financial viability.

2. Clear budget ownership and accountability.

3. Monitoring of quarterly accounts by FMBSG and Finance Committee.

4. Robust investment management policy.

5. Robust capital planning and management processes.

6. Robust internal and external audit process.

7. Development of lead indicators to predict changes in environment.

8. Use of TRAC to drive financial sustainability.

9. Work with Russell Group, UUK and others to promote need for sector sustainability.

10. Work with UCEA to restrain pay increases.

11. Completion of efficiency programmes notably “One university” and “Procure to Pay”.

12. Controls to meet student recruitment targets (Home and Intl.)

13. Agreement of future fees strategy

Yes

Yes

Yes

Yes

Yes

Yes

No

Yes

Yes

Yes

Yes

Yes

Yes

Financial Strategy

Annual Budget Approved by Council

Quarterly Accounts

Reports to Finance Committee

FMBSG

Internal, External Audit

Implement New HEFCE Guidance on Institutional Sustainability

Annual TRAC Reports

Russell Group and UUK publications

Regular consultation by UCEA with employers

Project Scorecards

see SR5I/SR5J

Approval by Senate and Council

R Dale

AC Stevenson

A Tobin A Bell

A Tobin

R Dale

J Simpson A Tobin

R Dale, S Frater

A Bell

C Brink R Dale

V Johnston

J Hogan R Dale

S Frater

AC Stevenson

Overall Status:

AMBER 2011/12 financial results ahead of budget but surplus lower than 2010/11 due to cuts in Government funding and Project 2012 investment. 7. Newcastle is pilot University for HEFCE initiative on reporting financial sustainability. 10. Risk (and potential opportunity) of national pay bargaining arrangements ending under review by the University

KPI: Financial surplus as a percentage of income

Target: > 4% of income excluding exceptional items

2007/08 2008/09 2009/10 2010/11 2011/12 3.9% 4.4% 5.7% 6.1% 2.3%

Progress over Time:


RISK SCORES


GROSS 5 4 20 NET 4 3 12

Page 17 of 24


Controls Required



Control Owner



SR5C Failure to have an appropriate information strategy and control of data Risk owned by John Hogan Triggered by: 1. Failure to define, agree and

implement information strategy 2. Failure to protect data 3. Failure of primary data centre 4. Inability to obtain management

data. Consequences: 1. Inadequate management

information 2. Failure of support for Learning &

Teaching and Research 3. Loss of data 4. Reputation damage 5. Poor Value for Money 6. Failure to present data in an

appropriate manner that is used for newspaper league tables

1. University wide information strategy operating

2. Mechanism to review processes, to assess development needs and prioritise development resources.

3. Systems established to meet requirements of Freedom of

Information Act.

4. Information Security policy in place.

5. Data backup protocols in place and tested across university.

6. Data assurance framework.

7. Off site machine room (DataBanx) available for critical IT systems.

No Yes Yes Yes Yes Yes Yes

n/a Digital Campus Steering Group Information Security Team Information Security Policy Data Backup Protocols Formal signoff process (approved by Audit Committee) Internal Audit Report

J Hogan S Williams S Williams S Williams S Williams S Frater S Williams

Overall Status:

Amber

1. Review of University I.T. expenditure recently completed. Key recommendations accepted by EB. Developing implementation plan. Good progress on consultations on strategy. 4. But we realise that there are operational weaknesses. 5. Good progress being made to consolidate server rooms, improve data backup arrangements. Issues concerning the University’s relationship with SAP, have been raised by SAP, and will need addressing.


RISK SCORES


GROSS 4 4 16 NET 4 3 12

KPI: National Student Survey Q17. I have been able to access general IT resources when I needed to. 2012: 86% 2011: 82% 2010: 83% 2009: 88% 2008: 90% KPI: 2010 Employee Opinion Survey. University computer systems are reliable (90%) easy to use (82%). 82% of respondents said that when needed they can find help easily with the computer systems.

KPI: Number of FOI requests received and responded to in time

Total Received Responded in Time % Responded in Time2007/08 80 78 98%2008/09 78 74 95%2009/10 90 86 96%2010/11 142 135 95%2011/12 153 144 94%TOTAL 543 517 95%

Page 18 of 24


Controls Required



Control Owner



SR5F Failure to recruit, develop, retain and reward staff of an appropriate calibre Risk owned by Veryan Johnston Triggered by: 1. High turnover of staff 2. Difficulties in recruiting staff 3. Significant pay differentials with

other sectors 4. Lack of career development

opportunities Consequences: 1. Reduced performance levels 2. Negative staff feedback 3. High levels of absence 4. Reduced quality of service

delivery

1. Recruitment, retention and succession planning needs identified

by School/Institute/Service heads.

2. University level headcount planning. 3. Clearly articulated and owned strategy for HR. 4. Staff Development Unit well established as a support service. 5. Comprehensive system of Performance & Development Review

(PDR) in place and fully implemented. 6. University level induction arrangements in place. 7. Annual pay review process in place. 8. National pay bargaining structures in place.

Yes Yes Yes Yes No Yes Yes Yes

Succession planning event chaired by VC, Annual Plans Monthly Circulation of headcount Strategy approved by Council SDU, Employee Opinion Survey SAP HR Monitoring System Induction programme As reported to Remuneration Committee UCEA

C Day, S Homans, C Harvey, J Hogan R Burrow V Johnston J Clark C Day, S Homans, C Harvey, J Hogan J Clark G Coupland V Johnston

Overall Status:

AMBER 5. Securing a much higher coverage of the PDR system is a key management objective. 6. Local level induction is not as comprehensive. Working on improvements. 8. Review of national pay arrangements underway.

Staff Development Unit – Employee Opinion Survey Results

• In the 2010 survey by CAPITA, Newcastle University’s high scores meant they could be described as a ‘Employer of Choice,’ ranking in the top 10 for the benchmark group

• 93% interviewed said the university is a good place to work, compared to 90% in 2007. In the 2003 survey, in the closest phrased question, 59% recommended the University as a good place to work.

• 79% interviewed said they feel able to access the learning and development opportunities they require, compared to 77% in 2007


RISK SCORES


GROSS 4 4 16 NET 3 4 12

Page 19 of 24


Controls Required



Control Owner



SR5D Failure to respond to severe business disruption event Risk owned by John Hogan Triggered by: 1. Major business disruption event. 2. Lack of prepared response

measures. 3. Lack of full functioning

secondary data centre Consequences: 1. Inability to teach students 2. Inability to conduct research 3. Loss of other critical business

activity. 4. Reputational damage

1. Health & Safety and Security staff and systems in place. 2. Local Incident Plans

3. Local Incident Business Continuity Plan 4. Major Incident and Business Continuity Plans. 5. Off site machine room (DataBanx) available for critical IT

systems 6. Full range of insurance policies in place.

7. Communications plans to cover building PA systems, IT systems and Press plan.

Yes Yes No Yes Yes Yes No

Health & Safety Policy Approved by Council The Plans n/a The Plans Internal Audit Insurance Report Report to Finance Committee n/a

G Westwater, B McBride G Westwater G Westwater G Morton G Westwater S Williams A Tobin J Hogan

Overall Status:

AMBER

2. Local Incident Plans are in place. University Incident Room located at 10 Eldon Place is equipped and fully operational. 4. Business Continuity plan template prepared, awareness sessions being held, training and support available. Floods highlighted the need for planning.

KPI: Number of serious incidences. 2011/12: 6 2010/11: 4 2009/10: 1 2008/09: 0 2007/08: 1


RISK SCORES


GROSS 5 3 15 NET 4 3 12

Page 20 of 24


Controls Required



Control Owner



SR5J Failure to meet international student recruitment targets Risk owned by Ella Ritchie Triggered by: 1. Failure of INTO project 2. Failure to issue CAS

(Confirmation of Acceptance for Studies) promptly

3. Loss of UK Border Agency licence

4. Significantly higher than target international recruitment

5. Poor performance in newspaper league tables

6. Changing pattern of international student markets

Consequences: 1. Reduced fee income

1. Coherent and robust marketing activity and strategic

positioning. 2. Development of new pipeline programmes delivered both in

Newcastle and internationally. 3. Review academic performance of INTO, conversion of

students and integration of INTO staff and students. 4. Procedures in place and creation of International Student

Management Group to ensure compliance with UKBA licence, including attendance monitoring.

5. Effective structure and operation of the International Office.

Yes Yes Yes Yes No

Annual Service Plan & monthly reports to EB Number of New Pipeline Programmes, (e.g. SIT) Regular reports to EB. Annual Report to Council. UKBA Assessment

n/a

L Braiden S Cholerton, E Ritchie A C Stevenson J Strachan L Braiden

Overall Status:

AMBER Strong international application trends. But huge growth in China masks falls in other markets. 4. Successful UKBA Audit. Real concerns about the operation of the UKBA. This risk is likely to increase if the Government’s policies on reducing migrants are implemented in line with current discussions. INTO cumulative performance is ahead of its original business plan.

KPI: International New Entrant Student Numbers (from registration reports as at November 26th)

Actual 2011/12

Target 2012/13

Registered 2012/13

Target Vs Registered

UG 588 632 717 + 85 PGT 1,761 1,902 1,687 - 215 PGR 168 221 174 - 47

Total 2,517 2,755 2,578 - 177

2012/13 International New Entrants Numbers – Top 5 Domiciles (1)China 1,215 (2)India 147 (3)Malaysia 118 (4)USA 116 (5) Greece 94


RISK SCORES


GROSS 4 3 12 NET 4 3 12

Page 21 of 24


Controls Required



Control Owner



SR5H Improper conduct of business Risk owned by John Hogan Triggered by: 1. Fraud 2. Entering into unauthorised

contractual situations 3. Failure to communicate policies

and procedures 4. Failure of health and safety

working practices and procedures 5. Conduct that brings the University

into dispute 6. Failure to adhere to ethical

procedures Consequences: 1. Loss of income and exposure to

unknown liabilities 2. Potential prosecution 3. Claims against University and/or

individual officers 4. Reputational damage 5. Falling foul of the 2010 Bribery

Act

1. Anti-fraud policies in place, including policy on whistle-blowing.

2. Internal Audit team reporting to Audit Committee.

3. Financial regulations & purchasing policies in place and policed.

4. Policy on gifts and hospitality in place.

5. Full range of insurance policies in place.

6. Safety policies and practices in place and clearly articulated through local documents and the web.

7. Health & Safety Strategy approved. 8. Ethical approval systems in place with training provided and a new

ethics toolkit launched. 9. Ethical Policy for the Acceptance of Corporate Gifts and Donations:

Major Gifts 10. Appropriate HR policies in place.

11. Contracts with international agents amended to take account of the

Bribery Act. 12. University code of ethics approved and in place

Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

Whistle Blowing Policy Internal Audit Team Financial Regulations The Policy Report to Finance Committee Report to Safety Committee Report to Safety Committee System part of MyProjects The Policy Policies/Procedures listed on Web Contracts Code

J Hogan J Simpson R Dale J Hogan A Tobin B McBride B McBride D Robertson J Clubley V Johnston J Terry J Hogan

Overall Status:

GREEN Despite the recent financial fraud, this risk area is judged to be under control. Given the scale of the University’s operations, the number of identified problem cases remains small.

Progress over Time:


RISK SCORES


GROSS 4 3 12 NET 3 3 9

KPI: Number of Whistle Blowing or similar accusations 2011/12: 1 2010/11: 0 2009/10: 0 2008/09: 0 2007/08: 0

KPI: Annual Assurance Returns to HEFCE ‘Material Adverse Changes’ 2011/12: 1 2010/11: 0 2009/10: 0 2008/09: 2 2007/08: 1

Page 22 of 24


Controls Required



Control Owner



SR5E Failure of management of major projects Risk owned by Richard Dale Triggered by: 1. Major project undertaken

without approval or management plan in place.

2. Project management plan not suitable

3. Major cost overruns and/or delays

4. Failure to manage Regional European Funds in a way that is deemed acceptable to the Government Office.

Consequences: 1. Poor results, increased costs,

funding claw back and delays.

1. Robust investment review and approval process. 2. Oversight of major projects by named senior officer. 3. Capital project methodology established in Estate Support

Service. 4. Project scorecards completed monthly for all major projects

with regular scrutiny.

Yes Yes Yes Yes

FMBSG Reports Steering Group Reports Project Methodology Guide Scorecards

R Dale A C Stevenson C Rogers R Dale

Overall Status:

GREEN

Regular reporting to FMBSG, EB and Finance Committee

KPI: Proportion of red risks from the summary scorecards that go to EB

July 2012: 0.7%


RISK SCORES


GROSS 3 4 12 NET 3 3 9

Page 23 of 24


Controls Required



Control Owner



SR5G Failure to maintain estate as functionally suitable Risk owned by John Hogan Triggered by: 1. Lack of investment funding. 2. Lack of agreed strategy and

competing priorities. 3. Poor cost controls and poor

Value for Money. 4. Insolvency of contractor. Consequences: 1. Difficulties for core functions

(e.g. staff and student recruitment, delivery of teaching and research).

2. Reputational damage. 3. Non compliance with legislation

and possible prosecution. 4. Escalating cost and difficulty of

repairs/refurbishment if not dealt with.

1. Up to date Estate development plan.

2. 3 year Major Projects financial plan approved by Council annually (includes Long Term Maintenance).

3. ESS operational and monitoring procedures in place e.g. functional suitability assessment process.

4. Long Term Maintenance programme drawn up, based on

condition surveys and agreed prioritisation methodology, integrated with major projects.

5. Cost effective space utilisation being encouraged through space

cost allocation, space reduction plans in place. 6. Performance indicators reported to EB quarterly and monitored

by ESS against annual targets. 7. Vetting of all contractors for solvency and competency for

major projects. 8. Major project steering groups in place.

Yes Yes Yes Yes Yes Yes Yes Yes

UK Development Options Report Major Projects plan EMS Statistics Approved by LTM steering group and FMBSG. Cost Driver Model Faculty estate plan Quarterly Reports Vetting Reports Scorecard Reports to EB

C Rogers R Dale C Rogers C Rogers C Rogers C Rogers C Rogers C Rogers

Overall Status:

GREEN 1. UK Development Options Report approved by Council. Flexible plan subject to business case. 5. Governance in place. Space Utilisation Committee chaired by PVC. Estate vision includes space reduction plans.

KPI: EMS Statistics. Functional Suitability of the Estate.

2007/08 2008/09 2009/10 2010/11 2011/12

Condition* 84% 86% 87% 89% 89% Peer Group Median Condition 80% 79% 81% 82% NA Functional Suitability** 81% 77% 79% 82% 82% Peer Group Median Functional Suitability 86% 85% 88% 87% NA

* % of floor space in condition category A & B. ** % of floor space in functional suitability Grade 1 & 2.

Our new targets for 2012/13 are 89% Condition and 84% Functional Suitability.

Progress over Time: Problematic/Satisfactory/GOOD

RISK SCORES


GROSS 4 4 16 NET 4 2 8

Page 24 of 24


Controls Required



Control Owner



SR5K Failure to manage the University in keeping with the ethos of environmental sustainability Risk owned by Tony Stevenson Triggered by: 1. Failure to achieve the objectives

set out in our Operational Sustainability Strategy

Consequences: 1. Financial penalties 2. Reputational damage

Governance and progress against the Sustainability Strategy Action Plan is monitored by Environment and Sustainability Committee (ESC), chaired by Professor Tony Stevenson (PVC P & R). 1. Deliver Sustainability Strategy targets for ESS in the Non-

Residential Estate including achieving external accreditation to a recognised Environmental Management System (EMS) covering aspects including energy & carbon, water, waste & recycling, transport & travel, and biodiversity.

2. Establish and deliver Sustainability Strategy targets, action

plan, milestones and programme for Accommodation & Hospitality Services in the Residential Estate including energy & carbon, water, and waste & recycling.

3. Establish and deliver action plan, milestones and programme

for IT across the University, including developing an IT carbon reduction plan.

4. Establish and deliver Sustainability Strategy targets, action

plan, milestones and programme for Purchasing Services including establishing a baseline for scope 3 CO2 emissions.

Academic Sustainability is covered by the Sustainability Societal Challenge Theme.

Yes Yes Yes Yes

EcoCampus Platinum and ISO14001acheived July 2012 Action Plan will be submitted to ESC at its October meeting Action plan drafted Baseline Established. Target to be agreed by ESC.

C Rogers M Hunter S Williams N Addison

Overall Status:

GREEN

KPI: Environmental Sustainability • Platinum EcoCampus award and ISO 14001 accreditation achieved July ‘12 • Review of sustainability KPI’s commenced, reporting to ESC in Oct’12. • New website for operational sustainability (inc. KPI’s) in development. • 93% of general waste recycled • Proportion of staff travelling to work by car reduced from 40% in 2004 to 22% in 2010 • Scope 1 and 2 CO2 emissions reduced by 4.5% (2010/11) despite 9 new builds since baseline year (2005/06) • Scope 3 CO2 emissions baseline (2011/12) for procurement established. • Water Consumption (non residential) – 37% reduction per student since 2005/06.

Progress over Time:


RISK SCORES


GROSS 4 4 16 NET 3 2 6

Documents

Newcastle University - Strategic Risk Register (December · PDF fileNewcastle University - Strategic Risk Register (December 2012) Risk, Description and Owner Controls Required Control