3 Embedding risk management
11. One of the main aims of the BBC's risk management
processes was to integrate risk management into planning and decision-making.
The National Audit Office survey showed, however, that the extent
to which risk management was embedded across the BBC was patchy.
Some 27% of respondents considered that risk identification had
not been integrated into everyday business processes (Figure
3); 39% thought the importance of risk management had not
been promoted or did not know where responsibilities for promoting
risk management lay; and 29% had never looked at the BBC's risk
management guidance.[13]
Figure 3: To what extent do you agree or disagree that risk identification is integrated into everyday business processes?
|
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree |
 |
Percentage of respondents |
Source: C&AG's Report, Figure 4
12. Risk management had still not been fully embedded
in the BBC's management of its large complex projects. Our reports
on other BBC projects, such as the White City 2 development and
the outsourcing of technology services, have previously highlighted
some of the risks which can emerge. These risks include the control
of user requirements, and the completeness and accuracy of cost
estimates and delivery timetables, in response to which the BBC
had proposed mitigation strategies. The BBC recognised the need
to embed risk management in its large projects as a key development
area.[14]
13. The BBC considered that some areas of risk management
were already well embedded into everyday activities, such as compliance
with its editorial guidelines. Mistakes had been made, however,
as in the handling of a live Blue Peter phone-in competition.
In that case, the risks of trying to run a live phone competition
were not recognised, and when technical problems prevented access
to phone calls during a live broadcast, a child, who happened
to be visiting the studio, was given the answer and instructed
to phone in, on-air, from an adjacent room. The BBC was fined
£50,000 by Ofcom for breaches of Ofcom's Broadcasting Code
for the Blue Peter incident.[15]
14. In the light of the Blue Peter incident, and
editorial or compliance failures in six programme phone-in and
interactive competitions, the BBC subsequently suspended all phone-related
and interactive competitions in July 2007 until compliance with
all regulatory requirements could be assured. The BBC Trust plans
to carry out an independent review, after the Director General
has implemented an action plan, to satisfy itself that improvements
have been made in the BBC's attitude to safeguarding the public's
trust.[16]
15. The BBC recognised that there was still some
way to go to embed risk management fully, but believed it had
made significant progress so far. A team of five risk managers
were working across all the BBC's business areas to assist integrating
risk management into everyday processes, and a new electronic
risk management database had been introduced to strengthen the
recording and reporting of risks. The BBC intended, by the end
of 2007, to re-run the National Audit Office survey to see if
improvements in its risk management arrangements had been achieved.[17]
13 Q 22; C&AG's Report paras 19-20, 36-37 Back
14
Qq 22, 88-89; Committee of Public Accounts, Twenty-fourth Report
of Session 2005-06, The BBC's White City 2 development,
HC 652; Committee of Public Accounts, Thirty-fifth Report of Session
2006-07, BBC outsourcing: the contract between the BBC and
Siemens Business Services, HC 103 Back
15
Qq 23, 36-37, 39; Report from the BBC Director General to the
BBC Trust, Premium Rate Telephony and Associated Issues;
May 2007, Adjudication of Ofcom Content Sanctions Committee, July
2007 Back
16
BBC Trust statement on editorial standards, controls and compliance,
18 July 2007 Back
17
Qq 11, 15-16, 22-26 Back
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