DRAFT. Classification: Restricted. Prepared with corp-board-paper v1.0.0. Not signed off.
Paper ORC-26-14. Operational Risk Committee, meeting of 18 November. For decision. Sponsor: Head of Branch Operations.
Recommendation
That the Committee:
- approves Option B, replacing the cash-recycler maintenance contract from 1 April [S1 p.2];
- notes that Legal has not yet reviewed the draft contract [UNVERIFIED: author to confirm Legal review date].
Summary
The current contract ends on 31 March and the supplier has given notice it will not renew [S1 p.1]. Doing nothing leaves 42 branches without maintenance cover from April [S1 p.3]. The Committee is asked to choose between a one-year bridge and a three-year replacement.
Options
| Option | Benefit | Cost | Main risk |
|---|---|---|---|
| A. Do nothing | No spend | Nil | 42 branches uncovered from April [S1 p.3] |
| B. Three-year replacement (recommended) | Fixed price for three years [S1 p.4] | 1.2m over three years [S1 p.4] | Transition during the Easter peak [S2 item 3] |
| C. One-year bridge | Keeps supplier choice open | 0.55m for one year [S1 p.5] | Second tender within nine months [S3] |
Financial impact
1.2m over three years, funded from the approved branch operating budget [S1 p.4].
Risk and appetite
The risk owner rates the transition risk Medium, inside the stated appetite for branch availability [S2 item 3].
Consultation
Procurement, 3 October: "Option B is the preferred route" [S3]. Legal: none supplied.
Conflicts of interest
None supplied: author to confirm.
Implementation
Contract signature by 15 December; transition plan to this Committee in February [S1 p.6].
Sources. S1 Business case v3. S2 Risk assessment, 28 September. S3 Procurement meeting note, 3 October.
Unverified. Legal review date.
Sign-off. Head of Branch Operations: ____ Date: ____. Chief Risk Officer: ____ Date: ____.