City of Winchester Trust
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The City of Winchester Trust Ltd

INFORMATION PACK FOR
TRUST COUNCIL MEMBERS



08 RISK MANAGEMENT POLICY



Role and approach to risk management


The Trustís principal objectives are set out in the Memorandum of Association and are summarized in its annual report as follows:


To seek to conserve the character of the City of Winchester and its surrounding area by:


* Preserving and protecting its buildings, spaces and artefacts;


* Encouraging new building, redevelopment, landscaping and conservation in accordance with the highest architectural standards;


* Promoting awareness of the above.


The means by which the Trust seeks to achieve these objectives are continually evolving, but as public policy and understanding of the economic benefits of conservation have developed, increasingly the trustís role has become one of seeking to influence decision makers e.g local and national government, property owners and developers, rather than directly participating in the restoration and redevelopment of buildings and landscaped areas.


The Trust relies heavily on the commitment of volunteers from amongst its membership to exercise this influence, but if it is to be effective requires financial resources to pay for professional and administrative support and to provide associated office accommodation and meeting spaces. The Trust also needs to promote its views both to its membership and to a wider audience.


The Trust therefore needs to actively manage financial risk to ensure that it retains the resources to enable it operate effectively. However, more critically, it needs to manage the reputational risks that affect its ability to influence decision makers in a way that promotes the trustís objectives.


Awareness of the risks to public perception of the Trust are also important in ensuring that the Trust continues to enjoy public support and can continue to draw upon an active membership as a source of volunteers. When controversial issues affecting the character of the City arise, the Trust should respond in a forthright manner but needs to be careful to ensure that its governance procedures have been fully complied with.


Because the reputation of the Trust can be affected by the action of individuals, awareness of the Trustís approach to risk management needs to be widely understood by trustees, employees and active members. The identification and management of risks affecting the Trustís ability to achieve its objectives is a key responsibility of all trustees and employees. The effective management of risk is fundamental to the achievement of the Trustís goals.


Assessing, managing, reviewing and reporting of risks


A group drawn from the membership of the Trustís Council are responsible at least on an annual basis for drawing up an assessment of the major strategic and operational risks facing the Trust, having regard to the impact and likelihood of the risks identified.


Having assessed the major risks, the group will need to consider whether existing controls are adequate and the alternative options for further mitigation of risks, including termination of activities involving relatively high risk and low reward and transfer of risks for which third party insurance is available. Mitigation may not be possible or desirable for all risks.


The outcome of the review will be reported to the Finance and Resources Committee and a recommended action plan will be reported to the Council for consideration, as the Council has ultimate responsibility for all the Trustís internal control arrangements.


Risk Roles and Responsibilities


Responsibility for actions arising from the annual review of the Trustís risk exposure will be assigned to specific trustees, but the Honorary Treasurer shall be responsible for ensuring that the risk assessment process takes place in accordance with the Trustís policy and for co-ordinating the process, with the support of a group of other trustees.


Risk appetite


The Trust is not averse to tolerating risk where the effect of taking mitigating action on the Trustís objectives might outweigh the impact of the risk, or where the short term impact of risk is considered to more than offset by a longer term benefit. Risk taking should be well informed rather than unplanned.


[Revised March 2016]