Gallagher Bassett

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Partnerships

Colette Dark

Risk Control Manager

Gallagher Bassett

ALARM SE 13th SEPTEMBER 2006

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ttSession Plan

Partnership working - What does it mean ?

Managing risk in partnerships – the key challenges

Risk management considerations within partnership protocols or framework agreements

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ttWhat is Partnership Working ?

Two or more independent bodies Public, voluntary, private

Working collectively Each contributing resources

Toward a shared objective

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ttCPA - RM of Partnerships

Use of Resources Internal Control KLOE 4.1 Level 3

The risk management process specifically considers risks in relation to significant partnerships and provides for assurances to be obtained about the management of those risks

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ttWhat makes a partnership Significant ?

Significant allocation of resource Financial

Time / people resource

High profile

Important to key objectives / goals

Statutory function / duty

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ttTwo Perspectives To Consider

Partnership Perspective ‘Insider looking out’

Risks to the partnership which present threats or opportunities to the objectives and effective working of the partnership

Council’s Perspective ‘Looking in’

Risks arising from the activities of the partnership that present threats or opportunities to the Councils objectives

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ttCase History – Failed Partnership

Project to regenerate former mining area.

Objective to establish a centre of excellence for advanced digital tech. provide training, spur to inward investment

Partnering with the Council were – Local TEC

A major ICT company

Funding - European Regional Development Funding of £3.3m. Total investment £7m

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ttCase History (cont)

Centre launched as Ltd company. But trading problems resulted in liquidation within 18 months

Council acquired assets for £0.7m and other liabilities of £0.2m. Total cost of financial support cost £2m.

Attempts by Council to deliver original outputs have failed.

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ttProblems Identified (1)

Initial plan and options evaluation Failed to establish likely demand for the

facilities

Unclear about target market and how services would be delivered.

Did not properly evaluate the risks including the scale of financial risk (risk of grant claw back)

Failed to engage support of members

Failed to ensure robust project management arrangements.

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ttProblems Identified (2)

Governance Arrangements Unclear regarding roles, responsibilities and

leadership arrangements.

No protocols for reporting financial and business information to Council members (lead to issues of commercial confidentiality)

No clear measurement of output including monitoring of EDRF requirements.

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ttIdentifying Risks in Partnerships

Strategic PESTLE etc

Governance considerations

Operational Threats to resources

Remember insurance risks

Relationship !! New Dimension Leadership / Trust / Engagement /

Communication / Risk Perception

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ttPartnership Protocol

Overall guidance on when, why and how to partner

Pre partnership appraisal to include risks presented by a partnership arrangement.

Partnership agreement Aims and objectives

Measurement of output and success

Governance arrangements (including RM)

Terms of dissolution and termination (exit strategy)

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ttTop Ten Partnership Killers

1. For ever and ever……

2. One-upmanship

3. Right place, wrong people.

4. Pulling rank

5. Mission creep

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Target? What target?

Death by drudgery

We know what’s best for you

Strictly on a need-to-know basis…..

Only here for the cash

Top Ten Partnership Killers

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ttQuestions ?