Corporate Training

Risk Management Policy

Last Updated: 12 July 2022

  • Introduction
  • Implementation of Risk Management
  • Risk Management
  • Roles and Responsibilities
  • Risk register
  • Risk and Internal Control

Introduction

London School of Emerging Technology (LSET) recognizes that risk is inherent in all aspects of its operations. This risk may affect students, staff, and members of the public, as well as the physical facilities at LSET, including their operation and related systems, policies, and procedures. Risk Management Policies are designed to identify, evaluate, and control business risks in order to ensure, as far as possible, that they are eliminated or reduced to a level acceptable to the LSET. In this policy, we explain how the LSET approaches risk management, as well as the roles and responsibilities of the LSET Executives and other key stakeholders. In addition, it identifies the main reporting procedures and highlights key aspects of the risk management process. Furthermore, it describes the process by which the LSET key stakeholders will evaluate the effectiveness of the LSET’s internal control system.

Implementation of Risk Management

The LSET executives are responsible for overall risk management. The Principal Instructor is responsible for executive responsibility, and he may undertake the responsibility for implementation by himself and serve as the LSET's "Risk Champion" or assign someone suitable. In order to access the effectiveness of risk management, the Principal Instructor may assign a separate Audit Committee.

Risk Management

It is imperative to note that risk management is not simply intended to mitigate risk but to support the achievement of the LSET's agreed objectives. Without effective risk management, the LSET could be exposed to a number of significant risks, including financial, business, and reputational risks. There are direct costs and opportunity costs associated with the control of risks. Managing risk involves determining an acceptable level of risk that will enable the achievement of LSET objectives while maintaining a balance between the level of risk exposure and the cost of mitigating it. The risk management process is concerned with mitigating and managing the risks that are inherent to the achievement of the Strategic and other LSET objectives, as well as the day-to-day operation of the LSET.

Roles and Responsibilities

Role of the LSET Executive

Key roles of the LSET Executive are to: Managing risk on a day-to-day basis.
Ensure that risk management policies are implemented within the areas that they are responsible for.
Discuss risk as appropriate with other key stakeholders
Meetings are held, and actions are taken as necessary.
Ensure that risk management is integrated into the culture of the LSET
Continue to raise awareness of the need to manage business risks among all employees.

Risk Appetite

A review of the LSET's risk management position is conducted at least annually by the LSET Executives. The risk appetite of the LSET can be summarized as follows:

Academic Risk – The LSET recognizes the importance of having sound risk management mechanisms in place to mitigate the failure of academic operations that may jeopardize institutional viability. In order for LSET to be relevant to the industries served by the LSET, it is imperative that these mechanisms maximize the quality of delivery and associated outcomes.

Financial Risk – Since the LSET is risk averse, strong financial controls must be in place and the LSET must protect itself from major financial shocks such as interest rate exposures and loss of funds (if any) on deposit.

Project / New Ventures Risk – LSET investments are only made based on financial forecasts and an evaluation of the risks involved in projects. In evaluating projects, the balance between risk and reward will be paramount as well as the level of investment.

Safeguarding – Managing all students, particularly those under 18 years of age, is of paramount importance and any major incidents could result in significant reputational damage. Although it is acknowledged that a student’s time at LSET is formative in their development as adults, this must be balanced with an inclination not to be overprotective.

We may provide students with practical work sessions in key curriculum areas, including robotics, and machine learning, as well as overseas trips. We recognize that in order to provide attractive courses that maximize employability, students must be provided with challenging opportunities to achieve success. In spite of the fact that such activities will always be risk assessed in order to anticipate and mitigate dangers and risks, it is acknowledged that the risk of serious injury to students and staff can never be eliminated.

Sports activities – The LSET recognizes that all these activities carry an inherent risk, whether in competition or training, for those actively participating and for those in close attendance. While it is understood that the risk of injury cannot be eliminated, the LSET expects that appropriate risk assessments and training will be implemented in order to anticipate and mitigate dangers and risks.

Risk register

The LSET has established a Risk Register, which is closely monitored by the LSET Executives. It is also discussed at various meetings. Also, the LSET has a "Top Ten Risk Register" which combines the LSET's highest risks into a single document, which is then reviewed at each Risk Management meeting.

In the Risk Register, all known risks to the LSET are identified, their nature is indicated, and the following information is included:
  • A key indicator of risk
  • Owner of the risk
  • Risk reduction activities in place
  • Taking further precautions to control risk Risks are also scored according to their likelihood of occurring and their potential impact on the LSET.
  • Risk mitigation measures are taken into account when calculating the score.

Risk and Internal Control

Risk management is an integral part of the internal control system. Several elements comprise this system, which together enable the LSET to effectively and efficiently respond to a variety of operational, financial, academic, and commercial risks. The following are some of these elements:

Policies and Procedures
As part of the internal control process, a number of policies are attached to significant risks. LSET Executives set the policies, which are implemented and communicated to staff by senior management. Where appropriate, written procedures support the policies.

Regular Reporting
A regular meeting of the LSET Executives is held to monitor key risks and their controls. Risk management decisions are made by the Senior Management Team at its regular meetings.

Business Planning and Budgeting
As part of the business planning and budgeting process, objectives are set, action plans are agreed upon, and resources are allocated. The progress towards meeting the business plan objectives is monitored on a regular basis.

Business Continuity and Contingency Planning
In order to address those areas and activities deemed to be potentially high risk, the LSET Executives have developed a comprehensive Business Continuity Plan, including an IT Disaster Recovery Plan and a Major Incident Plan.

Risk Action Plan
There are several actions that can be taken to control risk further, which are listed on the Risk Register. These actions facilitate the identification, assessment, and ongoing monitoring of risks that are significant to the LSET. A regular review of the Risk Register is conducted by senior management, and emerging risks are added as necessary. Improvement actions and risk indicators are monitored regularly by LSET Executives and Risk Owners. At each meeting, the Top Ten LSET Risks are presented and any necessary changes are discussed.

Internal Audit Programme
A key element of the internal control process is internal auditing. In addition to its normal program of work, internal audit is responsible for aspects of the annual evaluation of the effectiveness of the internal control system within the organisation.

External Audit
The external audit provides feedback to the LSET Executives on the effectiveness of the internal financial controls reviewed as part of the annual audit.

Third Party
In some instances, external consultants will be required in areas such as health and safety and human resources. Consultants and third parties who specialize in internal control systems can enhance the system’s reliability.

Annual Review
It is expected that this policy will be reviewed at least every year in September

Owner
This document is owned by the Principal Instructor