Risk Management

Statement of Policy

RSCDS Edinburgh defines risk as the threat or possibility that an action or event will adversely or otherwise affect the Branch’s ability to achieve its objectives.

PURPOSE

Risk can manifest itself in many ways, for example:

This policy explains the underlying approach to risk management, identifies high level roles and the main procedures

APPROACH TO RISK MANAGEMENT

Risk is managed through the operation of controls, checks and balances and the effective implementation of procedures. Controls do not eliminate risk and RSCDS Edinburgh must recognise the extent to which it will accept residual risk and how overall risk is to be actively managed. The following key principles underpin the Branch’s approach to risk management and internal control:

• The Trustees have final responsibility for risk management within RSCDS Edinburgh;
• An open and receptive approach to managing risk issues is our policy;
• RSCDS Edinburgh takes conservative and prudent recognition and disclosure of the financial and non-financial implications of risks;
• Major risks are identified and monitored on a regular basis.

ROLE OF TRUSTEES

The Trustees have a fundamental role to play in the management of risk. Our approach to risk is:

• To act with risk-avoidance more in mind than risk-taking;
• To undertake higher risk activities only after risks have been assessed and a management plan is in place;
• To consider and ensure that any adverse consequences of risks consciously taken will not place the Branch in jeopardy;
• To comply with and maintain high standards of corporate governance;
• To ensure an effective system of internal management and controls is in place;
• To monitor risk management quarterly and review risks annually.

RISK MANAGEMENT PROCESS

The following is the process for identifying and managing risk:

1. Establish risk policy.
2. Identify risks.
3. Assess risks.
4. Evaluate what action needs to be taken.
5. Monitor and assess regularly.