Strategic commercial interventions: assurance playbook
As part of the drive for continuous improvement we have developed specific and targeted operating procedures in relation to managing strategic assets. This includes detailed policy and guidance, signposting to existing best practice for those who are managing interventions.
Risk Strategy including Risk Appetite Statements
What is it?
This Risk Strategy sets out the process of identifying, recording, reviewing and escalating risks related to commercial assets and interventions for the Strategic Commercial Assets Division (SCAD). It outlines the practical arrangements, situates them within the Scottish Government (SG) corporate risk management process and links with the wider context of the Scottish Public Finance Manual and the HMT Orange Book.
What is its purpose?
Due to the unique nature of strategic interventions and the inherently high risk involved in securing a commercial return for a distressed business, there is some divergence from the standard SG corporate risk appetite. This guidance sets out bespoke Risk Appetite Statements including risk appetites and target risk score thresholds for a variety of risk categories and outlines that approach taken to assessing risk for new investment cases and ongoing investment decisions in relation to our portfolio of assets.
Furthermore, it seeks to maximise alignment with SG corporate risk management processes and support quality risk management around commercial assets and interventions in SCAD by providing guidance. The approach outlined will assist in providing a consistent approach to risk management around commercial assets and interventions across SG.
When should it be used?
Generally, this Strategy and accompanying Statements should be applied at all stages of work with commercial assets or interventions in both in the business-as-usual work and during stand-alone projects.
Whenever SCAD supports wider work around commercial assets or interventions within SG, the appetite statements should be shared with the relevant policy area and their Senior Responsible Owner for consideration of appetites and thresholds in their risk management processes locally.
SCAD’s Programme Management Office (PMO) proactively supports the wider division with mapping, management, awareness and reporting of risk within the division. At any point, the PMO team can be contacted to support individuals and teams within SCAD in their work with risk or to signpost to more appropriate corporate resources. This is reported through the Certificate of Assurance process on a yearly basis.
Useful Resources
Risk management - Scottish Public Finance Manual - gov.scot (www.gov.scot)
Contact
Email: SCADPMO@gov.scot