Risk Management in Major Regeneration Projects October 2012 Risk Management October 2012
Introduction •Regeneration are responsible for the delivery of a range of major programmes: – Elephant And Castle – Aylesbury – Canada Water – Bermondsey Spa – Southwark Schools for the Future as well as various capital investment projects for other departments. Risk Management October 2012
Risk Management Framework Risk identification, assessment, strategic mitigation and monitoring and reporting is integral to the project management of these projects and programmes. The basic tool for this is the risk log using the council’s standard format. Risk Management October 2012
Process • At project or programme inception a workshop is held with a range of project stakeholders to capture potential risks, likelihood, impact and approaches to mitigation and the appropriate risk owner • A risk log is prepared by the project manager and issued to relevant parties. • Risks are reviewed at regular intervals linked to key project meetings, reviewing status, mitigation and any new risks arising. • Following key project gateways, workshops are held to ensure the risk log is refreshed and updated. Risk Management October 2012
Risk Monitoring and reporting Corporate Governance - Individual project risk logs are reviewed by Project Directors on a monthly basis to inform programme risk logs which in turn are reviewed by Regeneration SMT on a quarterly basis. The departmental risk log informs the corporate risk log which is considered by the Audit and Governance Committee. Project/Programme Governance – Project/Programme Risks are reviewed at project team meetings and subsequently at project and programme board meetings. Exception – By exception significant risks are escalated as required to ensure that senior stakeholders are aware of issues rather than waiting for regular reporting intervals. Risk Management October 2012
Example - Elephant and Castle Corporate Level Corporate Risk Log Departmental Level Regeneration Elephant and Castle Programme Programme Level Project Level St Marys Leisure Centre Phase 1A Demolition Masterplan Risk Management October 2012
Affordable Housing -Key objective of the E&C regeneration programme is to deliver 1400 affordable homes as required in the adopted E&C SPD by 2026 -25% minimum affordable requirements within the Lend Lease Regeneration Agreement applying only to Heygate site -Delivery of requirement to be profiled over a 15 year period. Risk Management October 2012
Risks affecting delivery Main risk areas affecting delivery of target: - Delay/failure to get planning permission to deliver housing schemes incorporating affordable homes (as a result of non-compliance or objection) - Non-financial viability of private developments mean that S106 affordable housing provision fails to meet required 35% target figure and in turn the 1400 unit figure not achieved within 2011-2026 period. - No housing grant increases risk that Lend Lease are unable to achieve minimum 25% as per Regeneration Agreement. Risk Management October 2012
Recommend
More recommend
