Risk Management

The Mutual aims to reduce members’ Total Cost of Risk (TCR) over time by methodically reviewing losses across the membership base and the wider public sector. The Mutual will work with its members to reduce losses from claims and therefore, over time, the cost of cover.

By local government, for local government.


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What is risk management?

Risk management is the identification, evaluation, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor and control the probability or impact of unfortunate events.

Strategic risk includes areas such as:
  • personnel
  • financial
  • technological
  • managerial
  • political
  • environmental
  • social
  • contractual
  • legal
Operational risk is more often associated with:
  • physical loss
  • business interruption
  • personal injury

What does good risk management cover?

The mutual will support effective risk management across the full range of statutory and discretionary functions exercised by local authorities, including highways, education and social care, planning, housing, environment, recreation and wellbeing.

Risk Management summary

By making risk management an essential part of the way we work together, the Mutual can help you identify and prioritise your risks and take practical steps to manage them.

The most successful mutuals work because of the collective knowledge of the membership and the identification of common and emerging risks.

What are the benefits of managing risk?

The Mutual will develop and share best practice in risk management to improve the identification, mitigation, reduction and management of risks over time. This work will be data-driven and evidence-based. It will aim to:

  • Reduce the frequency and severity of accidents and claims
  • Improve claims defensibility and repudiation of unmeritorious third party claims
  • Satisfy all legal and regulatory obligations
  • Promote a risk-aware culture throughout the member authority

These approaches will apply to all classes of risk, from liability and professional indemnity through to property damage and business interruption.

The Risk and Insurance Manager or lead officer in each council will work with the Mutual, acting as the coordinating point within each council to help key services understand and manage their own risks of losses.

If required the Mutual will also be able to provide assistance in areas such as:

  • Highways Liability Risk Management Audit
  • Housing (Landlord and Tenant Liability) Risk Review
  • Car Parks Risk Survey
  • Tree Risk Management
  • Safeguarding & Protection of Vulnerable Persons Review
  • Parks and Open Spaces Risk Review
  • Property Risk Surveys
  • New Build/Renovations Fire Risk Management Advice & Guidance
  • Service (Business) Continuity Reviews

The Mutual will work methodically and collaboratively with its members to reduce losses from claims and therefore, over time, the cost of cover. Information will be shared so that members can see how their cost of cover relates to their claims and to understand the drivers of the risks which turn into claims.

The Mutual will draw on the LGA’s extensive expertise and experience to share insights for particular professions and services as well as issues affecting councils as a whole. It will draw on sector expertise in children’s services, highways, adult social care, education and property management to consider changes in legislation, policy and practice which can help (or could hinder) effective risk management, and identify new or emerging risks.