Volume 2

Government policy on the management of risk / House of Lords, Select Committee on Economic Affaris.

  • Great Britain. Parliament. House of Lords. Select Committee on Economic Affairs.
Date:
2006
Catalogue details

Licence: Open Government Licence

Credit: Government policy on the management of risk / House of Lords, Select Committee on Economic Affaris. Source: Wellcome Collection.

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    Issue Does current practice tend to promote risk averse responses by local authorities Comment In the main what has happened is an increase in risk awareness and how to manage the consequent risks rather than becoming risk averse. However, in the area of child care there has been some practice changes that have resulted in an increasing number of children being taken into care. The issue is more one of proportionate response to known risk and the majority of local government is striving to arrive at the appropriate level of response to a known or emerging risk rather than a blanket approach to avoid any risk. Eg a primary school with a green grass play area stopped use of the play area after a child had tripped and broken an ankle on a rabbit hole. Upon consideration the local authority reopened the play area but the janitor now checks for rabbit burrows on a regular basis. Issue What, if anything, could be done to improve the situation where there are problems Comment The greater awareness there is of risk assessment and risk management amongst officers and members the greater the ability to deal appropriately with differing levels of risks. The involvement of the appropriate level of officer and elected members is crucial to ensure that the council appreciates and understands often quite complex risk issues. Eg in a large PFI contract the risk attached to gaining planning approval for say forms of waste disposal can be financially substantial and that risk needs to be understood in the fixing of the price of the contract. This type of risk is becoming increasingly understood across local government as experience of such agreements is spread. The dissemination of good practice with regard to risk management may be something that the Committee may wish to pursue. Issue Views about the existence and impact of the so called compensation culture Comment In the late 90s there was a review by Lord Woolf into personal injury claims. The main aims of Lord Woolf’s reforms were to reduce cost, delay and complexity in the way personal claims were handled and to prevent litigation where possible. The underlying objective of the reforms was to encourage all sides to isolate the areas in dispute at an earlier stage and reach early resolution. The reforms were implemented from April 1999 and raised the level of awareness of personal claims within local government. The change of approach in handling such claims combined with a growing public awareness of the ability to claim created, for a period of time, a focus on personal injury claims arising in the main from street work matters eg trips on raised paving stones and potholes and injuries to vehicles. The action of lawyers in raising awareness amongst the public about their ability to claim has also been one of the factors in raising the profile of compensation claims. Issue Is there a real or perceived compensation culture and how has it affected local authority behaviour with respect to risk management Comment The area where the growth in compensation claims has most impacted on local authority behaviour is with regard to the risk assessment of the level of insurance cover on authority needs to carry in respect of such claims. Since 9/11 in America the cost of insurance cover has escalated and in determining the level of insurance cover, the level of self insurance and the level of risk to be carried has certainly been an issue for authorities. What has also happened is a tightening up of how such claims are dealt with in the terms of evidence required etc this cross refers to the changes brought about by the Woolf enquiry.