Simplifying risk management: practical solutions for schools

Schools need to improve their understanding of risk management, but how can they do this effectively when both time and budgets are limited? 

Risk management has now moved firmly beyond the world of financial services. Previously, only banks, building societies and insurers adopted risk management frameworks and processes because they were required to by the financial regulators. However, these practices are now widespread and organisations in other sectors are recognising and embracing the benefits of identifying and managing their risks. 

Whilst this article primarily focuses on risk management for schools, many of the points, challenges and solutions apply equally to small to medium-sized enterprises (SMEs) and charities. 

Risk management challenges faced by schools and smaller organisations 

Risk management is just good ‘business management’ - why wouldn’t any organisation want to understand its risks and get these under control? It doesn’t have to be complicated or time consuming.   

Effective risk management increases the likelihood of an organisation achieving success and reaching its objectives, while also strengthening its ability to manage incidents when they do occur.  

At Barnett Waddingham (BW), we are fortunate to have many clients in the independent schools sector. Through conversations with these clients, we’ve become aware of a ‘challenge’ facing schools whereby risk management is not well understood or implemented across the sector. 

This is largely due to resource and expertise – Bursars are time-poor and likely have limited experience when it comes to risk management. They may also not have efficient tools and processes in place to implement risk management effectively. The resources deployed by financial services and larger businesses (dedicated senior roles, large teams, expensive systems) are simply not available to smaller organisations.  

Our solution

With our expertise in designing, implementing, and maintaining risk management frameworks across various sectors - including finance, retail, funerals, multi-academy trusts, and more - we feel we are uniquely positioned to develop an effective solution for schools and smaller businesses.  

We are keen to help these organisations access the expertise and capability which is usually the preserve of larger businesses. 

Key findings around risk management in schools

In developing this solution, we undertook some more detailed research to get a deeper understanding of the challenges related to risk management in schools. Our research found: 

• Most schools do have a risk register of sorts - Excel is the most common format, with some using Word. 
• There is a common theme that risk registers are static, where these aren’t refreshed or referred to regularly. 
• Most schools described an annual or termly process where registers are dusted down, reviewed and then put back on the shelf until next time. Connected to this, there is a general view that risk registers are not being used to inform decisions and priorities.   
• There is limited time and resource available to complete and keep on top of risk management processes.  
• Risk reporting and related processes are time-consuming and inefficient. None of the research participants had positive views on their current risk reporting processes. 
• Across the board, there is an awareness of the need to improve risk management and a desire to do  

How can schools effectively manage risk given the constraints they continue to operate within?

Informed by our research and conversations with Bursars, we are pleased to be offering a new service called Celestia Risk. We are currently piloting this across a number of schools, as well as developing a number of other services with the school sector.  

Celestia Risk is a smart software tool which puts simplicity first. The key benefits are that the tool: 

• Enables the identification, documentation, management, and reporting of risks. 
• Provides a consistent risk register framework for each school (15 risks organised into 5 categories) with flexibility for customisation. 
• Enhances efficiency through automation and pre-populated dropdown lists for standard risks. 
• Enables schools to create visually engaging and insightful risk analysis and reports at the ‘click of a button.’ 
• Connects to the BW Risk Portal which provides a wealth of practical risk-related resources including articles, eLearning, toolkits, guides and templates. 
• Provides visibility and builds confidence for Governors and Trustees. 
• Future updates will link risks to compliance standards, offering streamlined reporting and actionable insights. 

Neil Cufley, Director of Operations/Finance & Clerk to the Board of Governors at Royal Russell School has been a key partner in helping us develop Celestia Risk. Neil said: 

Get in touch 

If you would like to discuss Celestia Risk, or how we can help your organisation with risk management generally, please contact one of the team.