Framework for managing risks to third parties
Purpose 1. The framework describes the way in which the Forestry Commission (FC) manages risks to third parties which result from its activities. Introduction 2. The Forestry Commission is the Government Department responsible for forestry throughout Great Britain. It has a Chairman and Board of Commissioners with duties and powers prescribed by statute which, as a cross-border public body, they exercise separately in England, Scotland and Wales. The Minister of Agriculture, Fisheries and Food directs the Commissioners' activities in England and, after consultation with Scottish Ministers, the National Assembly for Wales and the Northern Ireland Assembly, represents the United Kingdom's forestry interests within the European Union and in the wider world. Scottish Ministers and the National Assembly for Wales direct the Commissioners' activities in Scotland and Wales respectively. The Commission is responsible for advising Ministers and for implementing each country's separate and distinct forestry policy. Nature of risk 3. Risk is the uncertainty of outcome, within a range of potential exposures, arising from a combination of the impact and probability of potential events. The task of risk management is the limitation of the exposure to an acceptable level, by taking action on probability, impact (or both): it therefore requires identification of the elements to be considered and which may be controllable. Type of risk 4. The FC has to manage risks in the following areas: - Injury to third parties;
- Excessive use of regulation to limit public freedom;
- Loss of confidence in good government as a result of inappropriate policies or actions;
- Damage to public infrastructures;
- Failure to meet commitments due to the effect of natural phenomena;
- Damage to the environment directly by its own activity or indirectly by the actions of others;
- Distortion of the markets in which FC operates or influences;
- Damage to the wood processing industries.
Allocation of responsibilities in risk management 5. The Board of Commissioners are responsible for setting overall policy based on Ministerial guidance, for ensuring the broad structures are in place to deliver it and agreeing the overall strategy for the organisation and its Agencies. The Policy Board advises Commissioners on areas of forestry policy and ensures that this is promulgated to staff. The Management Board implements the organisational policies, which allow the organisation to function. Heads of Division prepare and promulgate advice and instructions for their areas of responsibility, implement systems and monitor compliance. Chief Executives of the Agencies exercise their freedoms to operate but must ensure that appropriate control systems operate within the Agencies. Unit Managers ensure that prescribed risk assessments are carried out, systems are implemented, staff awareness is created and staff training is provided. Individual members of staff have a duty to apply the guidance provided, to assess risks as they occur and to take appropriate actions to manage these risks. Assessment of risk 6. The situations where it is deemed appropriate to formally assess risk are identified from experience or intelligence received from a multitude of sources including research, and networking within the organisation, nationally and internationally. In some circumstances there is a legal requirement to formally assess risk. This information shapes the guidance and instructions issued to staff not only for formal risk assessment but also best practice. Information is also disseminated and collected through formal and informal networks and through the management chain. Management of risk 7. Once identified and assessed risk is managed by using standard types of controls: those reducing risk: those ameliorating risk:
The nature of the controls depends on the particular risk. The Annex (PDF file - 1MB) specifies the controls applied to risks being managed. The success of the risk management strategy is monitored through incident reporting and corrective action taken where shortcomings are noted. Management of this framework 8. The framework is reviewed annually and the results endorsed by the Management Board. Forestry Commission
September 2002
|