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The Risk Management Framework (RMF) is used to manage risk, with each risk scored for probability (PS) and impact (IS) using scales based on Defra definitions. The scores are multiplied to arrive at a total score (TS), calculated for both 'Inherent Risk' and 'Residual Risk'. The Board uses this framework to identify risks requiring urgent attention.

The probability score (PS) ranges from 1 (Very Low) to 4 (High), and the impact score (IS) also ranges from 1 (Very Low) to 4 (High).

Table 1 ranks areas with a Residual Risk Rating of 6 or more, with the top 5 areas being:
1. Leased Premises (Residual Risk Rating: 12)
2. Financial Reserves (Residual Risk Rating: 9)
3. Core Funding Base (Residual Risk Rating: 6)
4. Other Funding Streams (Residual Risk Rating: 6)
5. Reputational Management (Residual Risk Rating: 6)

Table 2 provides a detailed assessment of each area, including inherent risk rating, controls in place, residual risk rating, and further action planned. The owners of each risk are also identified, along with target dates for completion of further actions.