Academy Trust Handbook Risk Management Requirements | DfE Compliance

Why Risk Management Matters

Risk isn't only about finance. Effective risk management protects what matters most.

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Pupil Safety

Safeguarding, health and safety, and duty of care are fundamental responsibilities. Robust risk management helps identify and address threats to pupil wellbeing before they materialise.

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Continuity of Education

From IT failures to building issues, operational disruptions can affect teaching and learning. Anticipating risks ensures children's education continues uninterrupted.

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Financial Stewardship

As custodians of public funds, trusts must manage financial risks prudently. Strong controls protect against fraud, mismanagement, and budget pressures.

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Reputation & Trust

Parents, staff, and the community place their trust in your schools. Proactive risk management demonstrates responsible leadership and builds stakeholder confidence.

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Ofsted & ESFA Confidence

Regulators expect trusts to have effective governance arrangements. A well-maintained risk register demonstrates due diligence and supports inspection readiness.

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Legal & Regulatory Compliance

From data protection to employment law, schools face numerous compliance obligations. Risk management helps ensure nothing falls through the cracks.

What the Academy Trust Handbook Requires

The Department for Education sets clear expectations for risk management in academy trusts

📘 Handbook Requirements

The Academy Trust Handbook (formerly the Academies Financial Handbook) sets out the governance and accountability framework for academy trusts. Risk management is a core requirement, not an optional extra.

✓ Must manage risks: The trust must manage risks to ensure effective operation and to achieve its charitable objectives.
✓ Must maintain a risk register: Trusts are required to maintain a risk register that is kept under review.
✓ Board oversight: The board of trustees retains ultimate oversight of the risk register, drawing on the work of the audit and risk committee where one exists.
✓ Regular review: The board should review risks frequently and must conduct a full review at least annually.
✓ Full operations coverage: Risk management must cover the trust's full operations—not only financial risks, but also operational, reputational, safeguarding, and other risks.
✓ Contingency planning: Trusts must include contingency and business continuity planning in their risk management approach.
✓ Risk-based scrutiny: The internal scrutiny programme should be risk-based, informed by the risk register. The audit and risk committee should review risk ratings and the trust's responses.

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Academy Trust Handbook

Official guidance:

Academy Trust Handbook on GOV.UK ESFA Risk Management Guide

What Good Governance Looks Like

Moving beyond the annual spreadsheet to genuine risk oversight

🎯 Effective Risk Management

A risk register that sits untouched in a folder until audit season isn't serving its purpose. Good governance means risk management is embedded into how your trust operates.

✓ Live register: A risk register that's actively maintained, not dusted off once a year for compliance.
✓ Clear ownership: Every risk has an accountable owner who is responsible for monitoring and mitigation.
✓ Defined mitigations: Specific actions and controls in place to reduce likelihood or impact.
✓ Residual risk assessment: Understanding what risk remains after mitigations are applied.
✓ Board-ready summaries: Trustees can quickly see the risk landscape without wading through detail.
✓ Complete audit trail: A clear record of who changed what and when—essential for accountability.
✓ Timely reminders: Prompts ensure reviews happen on schedule and nothing slips.
✓ Evidence for scrutiny: Documentation that supports your internal scrutiny programme and demonstrates due diligence.

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Governance Best Practice

How EduRisk Helps

Purpose-built features that map directly to governance requirements

Governance Need	EduRisk Feature
Maintain a risk register ATH requirement	Central risk log One secure register for all schools in your trust—categorised, scored, and searchable. Learn more →
Board oversight & review Full review at least annually	Board & management reports Generate polished summary reports in seconds. Heat maps, key risks, and trend analysis at a glance. Learn more →
Keep register under review Frequent, ongoing review	Reminders & follow-ups Automated prompts when reviews are due. Escalation alerts for overdue items. Never let a deadline slip.
Demonstrate due diligence Evidence for auditors & Ofsted	Full audit trail Every change logged with timestamps and user attribution. Complete accountability history.
Cover full operations Not only financial risks	Education-specific categories Safeguarding, estates, HR, IT, governance, finance—all risk types in one system.
Make it manageable Keep register current & useful	Simple, intuitive UX Clean interface means registers stay live—not abandoned because the tool is too complex.
Multi-school visibility Trust-wide oversight	Trust & MAT views School-level or trust-wide dashboards. Role-based access keeps everyone focused on what matters to them. Learn more →
Data security & compliance GDPR, UK data residency	UK hosting & security Hosted in the UK on AWS. Encryption, access controls, and compliance built in. Learn more →

Disclaimer: The information on this page is provided for general guidance and is not legal or regulatory advice. While we have aimed to accurately reflect the requirements of the Academy Trust Handbook, trusts should always refer to the current official guidance published by the Department for Education on GOV.UK and seek appropriate professional advice for their specific circumstances.

Risk & Governance