Historically, risk management in schools consisted of the business manager bringing out the risk register once a year to be reviewed by governors.

It was very much a paper exercise, usually a standard annual agenda item, that didn’t add any value or specifically inform decision making or actions.

However, the Department for Education is placing an increased focus on risk, particularly for academies, including more statutory requirements and new guidance on how to manage risk. It’s a move away from simply updating risk registers towards a whole new framework.

As such, it is worth asking what we mean by risk management.

The meaning of risk

Risk, in a business sense, is defined as “any event happening that may have an impact on the achievement of business objectives”.

Similarly, to manage risk in schools, the aim is to keep everyone safe and avoid anything that might adversely impact learning or staff and students’ wellbeing.

This can best be achieved by creating a risk-management framework that includes elements to identify, measure, manage, monitor and report risks - from the safety and security of data, funding uncertainties and fit-for-purpose buildings to the quality of education and performance of the school.

It needs to be a continuous cycle, managed and reported as things change. Some risks may be reduced, new risks may be identified.

This is not the same as risk assessment. Yes, similar principles and processes apply, but a risk assessment is for a singular event, situation or scenario - such as a summer fair, a fire or an adventurous school trip - whereas risk management is concerned with the wider framework of policies, procedures, processes and governance of risk.

You can’t avoid risk

Given our desire to avoid risk, it is easy, when creating such frameworks, to answer a question like “what is our appetite for risk?” with a response of “none” or “we will always seek to avoid it”.

But the reality is, you can’t.

What’s more, opportunities are often unlocked by taking risks. In fact, any organisation in any sector that has a risk-averse mindset will become stagnant and unsuccessful over time.

While risk appetite might be a new concept to some, going forward it is an essential part of any risk-management framework and one that leaders and their wider teams need to get comfortable with embracing.

The key is to take risks knowingly and manage them appropriately - something that is done best when a school or trust knows what its appetite for risk is.

What’s your risk limit?

By predetermining limits, risk appetite guides decision making on the best allocation of resources to achieve the school’s objectives.

This means risk moves from being something unachievable, like “we avoid all risk” to something more realistic, such as “we aim to be in control and proactive in managing risk”.

How can this be done? A key component of a good risk-management framework is assurance. How do we know the controls put in place to manage risks are effective and are working as intended to reduce risks? How can these be verified or validated?

Building in internal and external assurances where possible strengthens the framework.

Examples of this can include internal checks, central controls, peer reviews, quality assurance visits and external audits.

These are the checks and balances on the controls, which contribute to the overall management of risks and reporting to governing bodies.

Embracing risk

Overall, risk management is a key part of effective governance in schools and an essential part of leadership, as it is fundamental to how an organisation is directed, managed and controlled at all levels.

This is why having an honest risk-management strategy, which recognises that risk cannot be eliminated but instead has to be part of operations, allows schools and trusts to make best use of resources to grow, while safeguarding its assets, funds and, of course, its people.

Mick Little is chief operating officer at Ascent Academies’ Trust

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