Risk Management in a
Policing Environment
ALARM South East Regional Conference
Wednesday, 3 November 2004
Nick Chown
Outline of Presentation
by
Nick Chown, Director of Risk Management,
Metropolitan Police Service
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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
The Met – performance
Mission:
To make London the safest major city in the world
Street Crime
34% over last 2 years
Gun Crime
10% in last 12 months
Commercial Robbery
Burglary
80% on last year
Lowest Levels since 1973
Detection Rates
18% in Jan 04 (target 20%)
Recruitment
246% over last 4 years
Commissioner - “The Met is the agency of first and last resort”
The Met - scale
 Gross annual revenue
budget of £2.9bn
 Approx 25% of total
service budget for
England and Wales
 44,300 Employees
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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
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
The Met – governance
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 Coordination Group
The Metropolitan Police District
Risk management – the background
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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
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
Mainstreaming risk management in planning
Strategic RM
NIM / PPAF
Annual Plan
Plan
EM SelfAssessment
Diversity EM S-A
Projects
Inspections
Audits
Reviews
Objectives
Risk – the chance of
something
happening that will
have an impact on
objectives
Ad hoc
Etc.
Monitor and
Review
Actions
Mainstreaming risk management in planning
Strategic RM
NIM / PPAF
Annual Plan
Plan
EM SelfAssessment
Diversity EM S-A
Projects
Inspections
Audits
Reviews
Objectives
Identify Risks
(Threats,
Hazards)
Risk – the chance of
something
happening that will
have an impact on
objectives
Evaluate Risks
Likelihood and
impact
Ad hoc
Etc.
Monitor and
Review
Actions
Risk Controls
Risk Reporting
Risk Register
Mainstreaming risk management in planning
Strategic RM
Corporate
Strategic
Assessment
Corporate
Risk Profile
Plan
Objectives
Identify Risks
(Threats,
Hazards)
Risk – the chance of
something
happening that will
have an impact on
objectives
Monitor and
Review
Strategic Intelligence Assessment
Evaluate Risks
Likelihood and
impact
Actions
Risk Controls
Business Risk Profile
National Intelligence Model
Business
Government
& Local
Objectives
Performance
Management
Business
Excellence Model
Managing
Crime
Outcomes
Outcomes
Prioritise Intelligence Work
Community
Safety
TASKING & COORDINATION PROCESS
Criminals
Disorder
Production of
Intelligence
Products
Tasking &
Coordination
Meetings
Controlled
Criminality
Problems
Acknowledgements:
National Criminal
Intelligence Service
Reduced
Crime
Analytical
Products
Knowledge
Products
System
Products
Controlled
Disorder
NIM tasking and coordination
CONTROL STRATEGY
comprises
The criminal intelligence
paints the picture
PRIORITIES FOR
• INTELLIGENCE
• PREVENTION
• ENFORCEMENT
Requires
Strategic tasking and
Tactical tasking and
Coordination group
coordination group
• Resourcing the needs
• Setting priorities
• Identifying policy needs
• Applying the tactical menu
• Responding to new needs
• Checking still on course
Acknowledgements: National Criminal Intelligence Service
National Intelligence Model – business risk
Business
Managing
Business
Risk
Human
Rights
Life & limb
Government
& Local
Objectives
Performance
Management
Business
Excellence Model
Outcomes
Prioritise Business Intelligence
Community
Safety
TASKING & COORDINATION PROCESS
Production of
Business
Risk Profiles
Tasking &
Coordination
Meetings
Reduced
Crime
Controlled
Criminality
Reputation
Service
Delivery
Finances
Outcomes
Analytical
Products
Knowledge
Products
System
Products
Controlled
Disorder
NIM tasking and coordination
The business intelligence
paints the picture
CONTROL STRATEGY
comprises
PRIORITIES FOR
• INTELLIGENCE
• PREVENTION
• CONTINUITY
Requires
Strategic tasking and
Tactical tasking and
Coordination group
coordination group
• Resourcing the needs
• Setting priorities
• Identifying policy needs
• Applying the tactical menu
• Responding to new needs
• Checking still on course
The Metropolitan Police risk management spectrum
Identify
Assess
Evaluate
Control
Controls
Measure
Measure
Report
Report
All Encompassing NIM ‘Risk’ Coverage …
Identify
Assess
Evaluate
Control
Control
Measure
Monitor
Report
Report
Risk management helps achieve the MPS mission
Mission
Internal Pressures
Vision
MPS Policing Plan
Change Mgmt
Local
Plans
External Pressures
Plans can be blown “off course”
Plans can be blown “off course”
Risk management helps keep plans “on course”
Mission
Vision
MPS Policing Plan
Change Mgmt
NIM
Crime
Local
Plans
NIM
Business
Risk
New NIM business intelligence products
Business Intelligence
PESTELGO
Issue
Analyses
 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
Business
Risk
Profiles
Current approach is often fragmented and inconsistent
Reputation
Risk
Insurance
Risk
Assessment
Legal
Issues
Health&
Safety
Compliance
BCP /
Security
Controls
Resilience
Corporate co-ordination role
Early Warning
Control
Environment
Legal
Issues
Physical
Security
Embedding in
Support Group
Process
Insurance
Health
&
Safety
Inspection &
Audit
Embedding in
Operational
Process
Risk
Profiling
Compliance
Resilience &
Business
Continuity
Information
Security
Embedding a
‘Managed Risk’
Culture
Risk
Assessment
SelfInsurance
Reputation
Risk
Some other elements of corporate role
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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
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
Impact assessment
Impact
Scale
Impact categories
Human Rights
& Diversity
Life &
Limb
Reputation
Performance
Financial
Very Low
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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
Added value from risk management
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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
Q&A
• Any questions?