Implementing Telecare
Assessing and managing project risks

Risks can be defined as the circumstances that can transpire to impede or prevent a project from achieving its stated objectives.

There are a number of different approaches to the management of risk, ranging from the extremes of completely ignoring risk to obsessive approaches which almost become an end in themselves. The most effective approach lies somewhere in the middle, and it is recommended that partnerships develop a measured and reasonable approach to considering and managing the risks involved within their local telecare projects.

If risks are not managed effectively they could threaten:

• the capacity of the project / programme to achieve the identified objectives;
• the ability of the project to contain costs within set budgets;
• the long-term existence of specific services.

Effective risk management leads to fewer shocks and unwelcome surprises, as the majority of things that can go wrong will have already been anticipated and considered. It can help the project team to manage expectations and provide a vehicle for adjusting and amending these on an ongoing basis. It also has the capacity to reassure stakeholders as it indicates a degree of control over the project outcomes.

Dealing with risk in a structured way

Risk Assessment and Risk Management provide a systematic way of identifying the circumstances that might blow a project off course, and an opportunity to manage these in a proactive way.

Risk Assessment involves identifying the possible risks that could arise, and appraising the potential impact of these risks. Risks generally come from two main directions – Internal and External - and can be further subdivided into different categories depending on the operating environment:

External

Economic: Changes in the economic environment can have an impact, which may be specific to a particular service area, e.g. changes in housing benefit levels have an impact on affordability in the private rented sector.

Political: The introduction of a new political administration can change direction and significantly alter the operating environment and its priorities.

Competition: Where a private provider comes along and begins to operate in a previously public sector dominated environment this can change dynamics.

Technology: Technological progress may mean that some equipment may become outdated fairly quickly, and something which is not feasible today may be available in 12 months time, presenting additional risks in purchasing equipment.

Internal

Delivery: Working in partnership depends on others. When a key member of staff leaves, their replacement may have a different skill set, impacting on how services are delivered.

Governance: Where this changes, it can entail different organisational priorities and a change in the operational environment.

Risk Management involves consideration of what would be done if an eventuality does occur. A particularly difficult part of this is establishing and assigning responsibility. Risk Management is not risk avoidance and it is not suggested that the right approach is to be as conservative as possible. Risk management is also not about needing to weight the situation in such a way that failure is unavoidable before an approach can be undertaken, but to try to shift factors to increase the probability of success.

Government Advice on risk assessment and management is contained within “The Orange Book” produced by the Treasury, which recommends taking an approach to risk which is proportionate and appropriate to local circumstances.

Prioritising risks

Once the risks have been identified these should be prioritised. Where high risks are identified and something can be done to mitigate them, activity should clearly be prioritised around these. Where high risks are identified that cannot be controlled judgement should be applied – a decision is needed as to whether the objective sought is so important that it is, literally, worth the risk.

A model framework for managing risks

Once the risks have been considered and evaluated there is a need for a framework to pull it all together – a ‘risk register’, supported by an effective planning process. This process should ensure that senior management are made aware of the risks, can validate these, and can assist to overcome them. A risk register in itself cannot make a problem magically disappear. However, with thought and consideration on a range of fronts, innovative solutions can often be identified. A typical risk register should include the following:

• A unique identifier for each risk;
• A title for the risk that is clear and easily understood;
• What the consequences of the risk might be;
• What is the probability of it occurring;
• If it happens, what level of impact would it have;
• What can you do about it – counter-measures which could be applied;
• What is the residual risk in terms of probability and impact once the countermeasures have been applied;
• Who is responsible for managing the risk;
• The date at which the risk was first identified;
• The date at which the risk was closed;
• Space for comments.

A model risk management plan for the Telecare Development Programme, developed by the Joint Improvement Team, is included as Tool 11. Where local partnerships have not yet developed a risk management plan, consideration should be given to reviewing this model and tailoring it to local circumstances.

Colleagues / partners should be engaged meaningfully in this process, to confirm that the key local risks are identified and agreed upon. The risk management plan should be embedded within local senior management decision making processes, and consideration should be given to how this can be best achieved. Experience has suggested that the majority of the identified risks are likely to be capable of being addressed by staff activities, with the remainder requiring input of some other nature, e.g. political decision.