David Teasdale, Chief Operating Officer, Leading Edge Academies Partnership
There are few of us that strive for a leadership position in the vain hope that, if we’re lucky, we’ll be writing a risk strategy on a Monday evening, searching (probably online) for divine intervention. For many of us, the risk register update is a pre-board ritual. Something that ticks a box and, hopefully, provides some reassurance.
At this point, I must confess two things… firstly, I’ve been there, struggling to see ‘the point’. Adding ‘update risk register’ to the bottom of my ‘to do’ list below ‘replace paper towels’ and ‘sharpen pencils’. Secondly, I am a now a risk management convert, sharing passionately how risk management can change the way you work. It’s not something that I lead with when I meet new people but it’s true.
Understanding why?
Having worked in a variety of sectors, in various leadership roles, I’ve come to understand that one of the few constants, is the need to identify and manage risks to the business or organisation. It’s something that we do all the time, usually, without realising we’re doing it. The problem is, this can often be a reactive process, separated from the dusty risk register that hasn’t been opened since its annual review. And yet, those two things are intrinsically linked and perhaps it’s just about a change in perspective?
On my successful appointment to the role of Chief Operating Officer at Leading Edge (a dynamic, forward-thinking Trust in West Cornwall), I decided to embrace risk management and understand how I could maximise its potential as a management tool.
At this point, I must thank the CST team, for a masterclass in masterclasses. I attended the Risk Assurance Masterclass, and it really did inspire a lightbulb moment. What is a very simple concept, suddenly became very clear; by actively reviewing, recording, and managing risk, I would be able to identify potential challenges, focus resources and ensure school and business continuity. I could also provide our Trustees with the reassurance they need to sleep well at night.
I won’t regurgitate the content of the Trust Risk Strategy at this point, but I’d be very happy to share it with anyone that might like a look. The key principles are, however, very simple: what are the risks and potential impacts (cause and effect), how do we mitigate against those risks (risk control) and what is the depth and quality of the assurance we provide to Trustees to satisfy them that risks are managed effectively (our three lines of assurance)? If our control or assurance mechanisms aren’t effective, then we need to focus time and resource in that area. A well-managed risk register gives us oversight of this, and, if the register is live and regularly updated, supports dynamic, proactive organisational management.
The requirement to have an Audit and Risk Committee within the Trust has created a forum for focused debate and has prompted a shift in the whole organisations approach to risk management. As strategic and school-based risks are escalated for consideration, I find colleagues considering risk as part of day-to-day decision making and management. This hasn’t been an overnight change and we’re not all dynamic risk assessors but as Trust leaders, we’re getting there.
The process to enlightenment
Surely having a well-managed risk register and considering risk at board and executive levels is enough though, right? Ah, not quite! As we embarked on the next steps to developing the Trust Risk Management Strategy, a small group of us sat down to consider risk appetite, something quite new to many of us. Considering critical organisational functions, how did we feel about taking risk, pushing boundaries, and trying new things? What surprised me, was the consistency in response. For example, we’re managing public money and so it seems appropriate to limit financial risk taking. As a Trust, we believe in delivering an inspiring education and as such, we should be willing to take risks, innovate and change as we develop the offer to pupils.
This discussion has allowed us to develop a series of risk appetite statements that provide a framework for the management of the Trust. This has focused thinking on areas of the business that should be managed centrally or with central oversight and where it is more appropriate for schools to operate independently, think creatively and try something new.
Application and implications for growth
As with most Trusts, following the publication of the White Paper, we have begun to consider in greater detail, the future of Leading Edge and our plans for growth. As we do this and talk to like-minded schools, we recognise the need to clearly outline our non-negotiables, to be honest about where we need to align systems and processes and be clear where schools have autonomy and independence. Having considered this in relation to risk appetite provides Trust leaders with the confidence to talk to schools, explaining the rationale behind these decisions, and having an agreed approach that ensures consistency and effective management.
As with anything, we don’t get it right all the time and I have no doubt that when I email Headteachers, there might still be a flush of dread when they read ‘escalated risks’ in the subject line, but as with anything, we’re evolving. For me, our appetite to get it right is as important as our appetite for risk.
The CST Blog welcomes perspectives from a diverse range of guest contributors. The opinions expressed in blogs are the views of the author(s), and should not be read as CST guidance or CST’s position.
David is a guest contributor to CST's Chairs Development Programme.
