Review of the BBC's approach to risk management

Date: 16.01.2015     Last updated: 16.01.2015 at 11.03

In the 2014-15 work plan, the Trust announced it would review the BBC’s approach to risk management.

The Trust has now appointed the professional advisory firm Alvarez and Marsal to conduct this work, following a competitive procurement process. The terms of reference for the review are set out below.

Nick Prettejohn, as Chairman of the Trust’s Value for Money Committee, will lead the review. Work has begun and is expected to complete in summer 2015.

Objective

Risk management is an essential function of the BBC. Across production, distribution, technology and finance, good risk management enables the BBC to take informed decisions, meet its public purposes and deliver value for money for licence fee payers.

This review will test the effectiveness of the BBC Executive’s arrangements to identify, assess, monitor and manage risk. It will also help to ensure the BBC’s management of risk is providing value for money and identify any opportunities for improvement.

Scope

The review will assess the BBC Executive’s risk management arrangements and how the BBC’s risk culture, including informal processes and behaviours, influences the operation of these systems.

The review will draw on expertise from those with experience of the TV and radio production industry and of managing public money, to ensure the findings and recommendations are relevant to the BBC’s particular circumstances.

Key questions

The study will focus on three main areas:

1. Is the BBC’s approach to risk well considered? – an assessment of whether the BBC’s risk management policies and procedures are fit for purpose.   

2. Is there evidence that the approach to risk is working well at a senior level? – an assessment of risk management at a senior level and the extent to which information on risk is used to support strategic decision making.

3. Is there evidence that the approach to risk working well at an operational level? - an assessment of the culture of risk management, whether risk management processes are being following in practice and whether operational decisions are supported by information on risk.

Notes to Editors

  • Risk management within the BBC’s commercial businesses (such as BBC Worldwide), are largely out of scope for this review
  • Final costs will be published alongside the review.