Key strategic and operational risks to the business case

The DRS business case does not assess strategic operational risks such as the potential risk of:

M Financial savings are lower than planned

M Income generation well below targets

M Unanticipated additional costs

M Failure to make required level of investment

M Value for money not achieved or significantly reduced

M Failure to achieve radical transformation of services (“Unless a radically new way of delivering these key services is found it is likely that they will continue to face service reductions in terms of the functions they can offer to our community” (page A7)

M Failure to increase service user satisfaction

M Contract renegotiation or termination

M Inadequate governance arrangements

M Staffing disputes following new working systems, job losses, cuts in terms and conditions.

M “The business case fails to identify the operational risks of outsourcing DRS services, including the governance, financial and service delivery risks.”

M “It also fails to assess the potential knock-on effect on the local economy of significant changes in employment policies, local supply chains and the local environment in Barnet.”

M “There is clearly a risk that user charges will be increased in order to achieve the income generation targets.”

M “The Council should immediately exclude Cemeteries and Crematoria from the scope of the procurement and return to the 2010 options appraisal findings.”

M The Business Case does not assess the future demand for services.

 

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