Rhyl Youth Community Hub

Organisational Business Risk Assessment

Risks Identified: / Specific Risk / Net Risk Level / Consequences of the Risk / Current Position
Control Measures/Mitigation
C / L / S
Welsh Government reject the application for agrant for the completion of the building work. / No Funding made available for building work. / 5
5 / 2
4 / 10
20 / RYCH would be unable to take over The Hub as the Mortgage is dependent on the grant from Welsh Government financing the completion of the building. / RYCH are currently completing grant application for the finance to complete the building work.
Current fears of the RYCH Board (Red).
The confusion between RYCH and RYAG by Welsh Government and others. / Links,between RYAG and RYCH, making it appear that RYCH had anything to do with the debts incurred by RYAG. / 4 / 4 / 16 / RYCH being madeliable or perceived as being ‘responsible’ for RYAG short-comings / At all times, all members must ensure that all organisations, including Welsh Government are continually made aware of the fact that RYCH are a NEW Company with no past history.
No Mortgage available through WCVA. / Funding not being made available due to lack of funding from Welsh Government. / 4 / 1 / 4 / RYCH would be unable to take over The Hub and the project would stop. / RYCH have been promised funding for the Mortgage from WCVA dependent upon funding being made available from Welsh Government for the completion of the building work.
Lack of transparency in the governance of the building work, and other parts of the management of the project. / Not tendering out the various aspects of the services required i.e. building work, accountancy, services providers, etc. / 2 / 1 / 2 / Loss of faith in the management of the project. / RYCH have tendered out all work and services so far and, will continue to do so, to ensure best value for money and best quality services. Purcells appointed as project managers following an open tendering process, they are now engaged with Denbighshire County Council in ensuring the high quality management of the remaining building work
Delays in funding for building work leading to delays in starting building work. / Inability to gain funding to complete the building work within a reasonable timescale.
Existing tenants may leave. / 4 / 3 / 12 / RYCH could lose credibility with funders current tenants, neighbours, other agencies as well as local groups and young people.
Loss of income from renting rooms and potential new tenants finding alternative premises. / Grant application to Welsh Government has been strengthened and all demands of the Welsh Government have been met in order to expedite a swift conclusion to the funding application.
RYCH are keeping current and potential tenant(s) informed of progress.
Deformation of the character and reputation of RYCH. / Spurious remarks, to a variety of organisations, by outside persons. / 4 / 4 / 16 / Loss of credibility of the organisation and wasting the Directors time. / RYCH will seek legal advice in dealing with any negative activity, will respond to any ‘allegations’ made and will engage positively with the media and local community to protect the reputation of the organisation.
Deterioration of Building structure. / Weather damage to building structure. / 4 / 2 / 8 / Weather damage could cause the building to deteriorate beyond repair / The current manager will continue to monitor the building structure reporting to WCVA through Grant Thornton
Poor Governance. / Lack of strong management of the project and poor non-transparent governance and appointment procedures. / 3 / 2 / 6 / Lack of credibility affecting the trust and confidence of funders and other groups. / Board members are recruited and appointed on merit, with special regard to previous experience, specialist knowledge and strengthening of the Board.
All Board members have undertaken Governance Training through Wales Co-op and will undertake further training as and when necessary.
The Board will meet at least 10 times per year; They are currently meeting monthly and this is likely to increase in frequency during the initial period of operation.
The Project Manager is not a member of the Board to ensure transparency at all levels of governance.
Board members are expected to have at least one area of responsibility and can request information from the project manager at any time to ensure adherence to company policies and procedures.
Uncertainty of grant funding. -
Potential lack of future funding. / Lack of further funding from funding organisations due to timescales being extended. / 5 / 2 / 10 / The Project would have to rely, solely, on rental income.
Should this fail, the project would close and the building returned to the ownership of either the Mortgager or the holders of charges against the Building.
(it would continue to be a community facility/centre). / From the outset RYCH will develop networks with a variety of Corporate Sector benefactors and develop alternative ‘Un-restricted’ income streams including social enterprises and individual giving schemes.
Through the development of a robust communications strategy, RYCH will maintain a good working relationship with local, regional and national media, to develop a culture of good news stories about young people.
Through the interaction within local, regional and national youth work networks, they- will establish professional relationships to reduce the likelihood of negative outside influences impacting on RYCH.
RYCH has legal advice and support is provided by Gamlins Solicitors. This will minimise the risk of outside influences damaging the reputation of the organization.
RYCH has comprehensive and robust company policies (attached) which will be regularly monitored and updated. All staff, volunteers and Board members will be thoroughly trained and inducted; again this will minimize negative influences impacting on RYCH.
Uncertainty of potential organisations to rent office/training room space. / No tenants to take office space. / 4 / 2 / 8 / RYCH would be reliant on grant income alone. / Discussions on the letting of office and training spaces are well underway with potential tenants but, until Welsh Government approve building grant, we are unable to enter into formal discussion to secure new tenants.
Ability to service mortgage / loans. / Insufficient income to enable RYCH to pay the organisation’s outgoings. / 4 / 2 / 8 / The closure of the organisation and the return of the building to the Mortgager or holders of charges against the building. / Application to Big Lottery makes provision for capital spend to purchase the premises outright.
RYCH will have an on-going relationship with WCVA to discuss options, should the need arise.
Claims arising from business / service delivery practice. / Poor risk assessment of activities resulting in legal action against the organisation. Accidents and personal accident claims, etc. / 4 / 1 / 4 / Financial implications for the organisation of defending any legal claim and the credibility of the organisation. / Appropriate Insurance cover will be in place prior to start-up. The premises and all activities carried out in the name of RYCH, either on or off-site, will be rigorously risk assessed, and those assessments signed off by the project manager.
All necessary and available steps will be taken to reduce and/or remove risk to staff, service users and visitors whilst on the premises.
All work undertaken, will be subject to the company policies (attached), which all staff, volunteers and Board members will be required to read and understand, they will also be expected to undertake training as/when required.
Business Interruption / Loss of Power, services or building maintenance issues / 4 / 1 / 4 / Claims could arise from tenants for loss of services / RYCH will indemnify themselves, through their comprehensive insurance cover and will maintain excellent working relationships with tenants, their service users and beneficiaries to minimise the impact and minimise the possibility of a claim being made.
Financial transactions. / Fraud misappropriation of project funds. / 4 / 1 / 4 / Legal implications, loss of credibility for the organisation. / All payments require the signatures of two, unrelated, signatories.
All financial matters must be carried out in accordance with the Financial Management and Controls Policy.
Any irregularities in financial control will be investigated and may lead to disciplinary action being taken, in line with the Disciplinary Procedure.
Directors will be able to inspect the financial controls and practices at any time, and RYCH will shortly be appointing accountants to inspect and audit accounts annually.
Statutory Payments. / Payments to service providers/suppliers, staff and others, not being made on time. / 4 / 1 / 4 / Legal action against the organisation, interest charges, loss of credibility and/or the service provided. / The accountants, when appointed following the current tendering process, will be responsible for compiling pay roll information and advising RYCH of HMRC payments made and due.
Information will be provided at every Board Meeting showing statutory payments made to HMRC and other bodies, and those to be made.
The Treasurer has responsibility to ensure statutory payments are made on time.
Theft / Personal Loss. / Theft of personal and company property. / 2 / 2 / 4 / Costs incurred in replacement of items stolen, loss of credibility on services and staffing, by outside groups. / All areas of the premises that are not occupied at any given time, will be locked and keys kept in a safe. A list of key holders will be compiled.
A disclaimer will be displayed outlining the security responsibility for any personal possessions brought onto the premises.
CCTV is already installed in part of the premises and will be extended further into other publicly used areas of the premises.
The premises are alarmed by a system directly linked to North Wales Police.
Personal Safety and Protection of Young People. / Issues surrounding safeguarding and the young peoples’ personal safety both within the premises and whilst undertaking other activities away from the premises. / 3 / 2 / 6 / Legal implications for RYCH and/or individual members of staff, loss of credibility. / All staff and volunteers are required to undertake a Disclosure and Barring Service check. (See attached Child Protection Policy)
RYCH has a two-worker policy and does not support the practice of lone working.
All programmes and activities will be led by at least 2 members of staff and/or appropriately qualified volunteers.
One-to-one meetings with young people will be undertaken in an accessible and open space and, where that space requires confidentiality, in a room that has clear window vision.
Fire. / General Fire Risk, inc. Flats. / 4 / 1 / 4 / Cost of renovation of the building/area exposed to the fire and loss of income from lost rents, etc. / Premises Insurance will cover such an eventuality.
All staff will be trained in fire evacuation procedures. (See attached Fire Evacuation Policy).
Fire safety information is displayed appropriately throughout the premises.
Fire Warden(s) will be identified and appointed.
The fire alarm is tested on a weekly basis and recorded.
Fire fighting equipment and alarms are serviced annually.
Fire evacuation drills are carried out at least annually.
  1. Risk Level

Consequence: 1.Personal

  1. Credibility
  2. Legal
  3. Financial
  4. Closure of organisation

Likelihood: 1.Unlikely

2.Possible

3. Probable

4. Likely

5. Certain to occur