Hello, my name is Ms. Wyatt and I am so pleased that you could join us here today for our Citizenship lesson.

Welcome to today's lesson on "How does the UK government manage risk?" from the unit "What has the UK economy got to do with me?" By the end of today's lesson, you will be able to explain what risks the UK government faces and how it prepares for them.

The following keywords will be used throughout today's lesson, and they are risk and risk management.

Risk is the chance of something going wrong, leading to loss, harm, or an unexpected negative outcome.

Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

Our lesson is broken into two parts today, with the first part exploring, "What risks does the government face?" And secondly, looking at, "How does the government prepare for these risks?" So when you're ready, let's start our lesson on "How does the UK government manage risk?" Risk is the chance that something bad or unexpected will happen.

It refers the possibility of loss, harm, or failure in a situation.

Risks can exist in many areas such as finance, health, business, and daily life.

Some risks can be predicted and managed, while others are uncertain and harder to control.

So you may have approached some risks yourself.

You might have people say to you sometimes with some of your decisions, "That's a bit risky," perhaps.

For example, in finance, risk could mean losing money due to a stock market crash.

In health, risk could mean getting the chance of getting sick from a disease.

In business, risk could mean a company failing due to a bad decision.

Governments and businesses use risk management strategies to reduce the negative effect of risks and prepare for possible problems. We all have to take risks in life, and we mitigate or try to prevent these by managing them.

Sometimes we are very aware of these risks, and other times we might not even notice them.

For example, when we cross the road safely, we are mitigating the risk of getting hit by a vehicle.

We might not realise we are doing it, but we are looking in both directions and then checking before crossing the road.

This is behaviour that we learn as a child and we know the consequences of not paying attention near roads and vehicles.

Let's think of another example of mitigating risks.

Your homework is due in tomorrow.

Do you risk it and hope that the teacher has forgotten to ask for the homework? Or do you just get the homework done knowing that there is a risk that you will be punished with a consequence if you don't do this homework? The UK government also have risks that they need to manage.

The government faces many risks and could affect the safety, security, and wellbeing of its citizens.

Risk management is the process of identifying, assessing, and responding to these risks to reduce their impact.

So let's study the image on our screen.

Based on this image, what is risk management? So we can see someone and they look like they're walking on a tightrope.

So what is risk management? Based on the image, what do we think it is? Risk management is the process of identifying, assessing, and responding to these risks to reduce their impact.

The image shows a man treading carefully along a tightrope, showing and he's at risk.

The safety net represents the response and managing that risk.

Risk management is about keeping things safe for citizens and giving them resources or safety nets when they're at risk.

So well done if you identified that the thing that the man is holding is a safety net.

One risk that the government faces is natural disasters such as flooding.

In recent years, heavy rainfall has led to severe flooding in areas like Yorkshire and the Midlands, damaging homes and businesses.

For example, in Greater Manchester in January 2025, this did happen.

The government must plan for these risks by improving flood defences and provide emergency assistance to the affected communities.

So when this happens, when these risks happen, like natural disasters, the government has to answer to them, help people, provide emergency assistance, but obviously they've got to always be planning for these risks to happen.

Another major risk is health emergencies such as pandemics.

So for example, in 2020, the COVID-19 pandemic showed how quickly a virus can spread and disrupt daily life.

The government had to introduce lockdowns, provide vaccines and support the NHS to manage the height of the crisis.

By investing in healthcare and planning for future pandemics, the government can reduce the impact of similar health emergencies.

So we've got natural disasters and we've got health emergencies as some of these major risks for the government.

Cybersecurity threats are also a growing risk.

So with more services and personal information stored online, cyber attacks from criminals or foreign governments could target banks, hospitals, or even government systems. For example, in May 2017, the NHS was attacked by ransomware, which disrupted hospital services.

And in June 2024, an NHS Trust partnership was hit by another cyber attack.

The government therefore invests in stronger cybersecurity measures to prevent these attacks and protect important data.

So these cybersecurity threats are a growing risk.

So what government risks do these images represent? So what do we think A is representing, B and C? We've looked at three major risks that the government's faced so far.

Can you remember what they are and which ones do they match with the images? Pause the video and have a think.

Okay, so hopefully we've said A is natural disasters, B is healthcare emergencies, and C are cybersecurity threats.

Well done if we got those three correct.

Another risk the government faces is terrorism and crime.

Terrorist attacks can cause harm and create fear in society.

The government manages this risk by increasing security measures, monitoring threats, and working with intelligence agencies to stop attacks before they happen.

It also invests in police and community programmes to prevent crime and keep people safe.

The UK government must also prepare for economic risks such as inflation and job losses.

If businesses struggle, people may lose their jobs, making it harder to afford basic needs.

The government responds by creating support safety nets like benefits, including Universal Credit, setting economic policies to manage inflation, and investing in industries that create jobs.

So they're responding to these sort of economic risks by putting things in place.

By doing this, the government helps to keep the economy stable and protect people's livelihoods.

Other risks that the governments face include poor air quality, high cost of living, workers going on strike, mass protests, so lots of people demonstrating, high crime rate, misinformation, disinformation, and malinformation, so scams, global conflicts and wars.

Each of these risks requires careful risk management to reduce harm and keep society running smoothly.

So far, I think we're learning the government face a lot of risks.

The similarity between all risks faced by the government is the effects that they have on the economy.

If more money is needed to combat a risk, it is a fine balance to minimise harm to other sectors of the UK economy.

Now this is part the risk management that they need to do.

For example, if a natural disaster occurs in one area of the UK, local communities will need to be given more money to potentially rehome people, build new infrastructure, and find solutions to stop it happening again in the future.

Solutions tend to be costly.

So let's fill in the missing words on our sentences here.

So we're gonna read through it for you.

So, "The government increases security measures to minimise the risk of blank and crime.

For instance, employing more blank officers helps to keep people safe from harm and personal risk.

The government also has to prepare for blank if there is an economic downturn and put in safety nets, including blank.

All risks affect the UK blank." So there's lots of missing words here.

Let's pause the video and work out what our missing words are to complete our sentences.

Okay, well done, everyone.

Let's find our missing words then.

So the first one is terrorism.

So, "The government increases security measures to minimise the risk of terrorism and crime.

For instance, employing more police officers helps to keep people safe from harm and personal risk.

The government also has to prepare for unemployment if there is an economic downturn and put in safety nets, including benefits.

All risks affect the UK economy." So well done if we got those gaps in.

So terrorism, police, unemployment, and benefits and economy were our missing words.

Good efforts, everyone.

The government needs your help.

So your mission is to step into the shoes of a top government advisor and write a briefing report to the Prime Minister.

Now, it needs to include some things.

It needs to include one government risk and an explanation.

So we've looked at lots of different risks that the government faces, you need to pick one and explain it.

How could it harm the economy? So is it gonna impact job losses? Is it gonna make a high cost of living? Are businesses gonna start to close? And then one possible solution that the government could take to manage or prevent this risk.

So let's pause the video here and let's have a go at writing a briefing report to the Prime Minister about potential risk, what harm it could do, and the solution to it.

Okay, well done, everyone.

So quite a big task.

So hopefully we've had a go at writing a briefing report to the Prime Minister now focusing on just one risk that the government faces.

Now we've chosen to focus on natural disasters, in particular, storm surges and floods.

So, risk code one, so we've said, "Storm surge is a national emergency event." So we've said, "Prime minister, we must act now! A massive storm could hit our cities, flooding homes, destroying businesses, and leaving thousands without power.

The economic consequences would be disastrous.

The threats are roads and railways will be submerged, cutting off supply chains.

Businesses will shut down and thousands of people will lose their jobs overnight.

The cost to rebuild will be in the billions." Now the economic impact? "Without quick action, inflation could rise as food and fuel become scarce, insurance companies could go bankrupt, leaving citizens stranded without help.

The longer we wait, the more damage will be done." Now a solution.

"We must immediately invest in flood defences, emergency response teams, and financial aid for affected communities.

A proactive plan now will save lives, jobs, and billions of pounds in future damage.

Action is required today, Prime Minister.

Waiting is not an option." So we were really, really impactful with what we had to say to the Prime Minister.

We kept it quite short but we added in the detail where it needed to be.

We had a solution, we talked about the economic impact.

So hopefully you've had a go at this.

You might have chosen a completely different risk that the government faces, and I'd be really interested to know which ones you picked.

We have now explored what risks the government faces and we're able to look at now, "How does the government prepare for risks?" So the UK government uses different strategies to spot, prepare for, and reduce risks that could harm the country.

These plans help keep people safe and protect the economy.

They cover many areas, like healthcare and cybersecurity, to make sure the country can handle challenges and recover from problems. In order to minimise and avoid as much risk as possible, the UK government have a process of risk management, which means they have to identify all the potential risks to their citizens.

They have to rank those potential risks according to the level or likelihood of the risk, and this helps them then prioritise their attention, so which one's the most risky? And make plans to reduce the possible negative impact of any risks.

For example, in relation to public health, the government conducts simulation exercises to evaluate and enhance its response capabilities.

A notable example is Exercise Cygnus, a three-day simulation carried out in October 2016.

This assessed the impact of a hypothetical H2N2 influenza pandemic on the UK.

Okay, so they were put into a sort of simulation exercise where they would potentially see, if this influenza pandemic did happen, this would be the consequences and this is how we should respond.

Exercise Cygnus aimed to identify strengths and weaknesses within the health system and emergency response chain by putting them under significant strain to show the areas that needed to be improved.

The findings from the exercise have informed pandemic preparation plans for the future, emphasising the importance of proactive risk management in public health.

Now the events listed below are in the incorrect order, so they're not right.

We need to place the events in the right order to show the process the government follows for risk management.

So the first one says, "Makes plans to reduce the possible negative impacts of any risks." Next one, "Identify all the potential risks to citizens." And then, "Rank the potential risks according to the level or likelihood of the risk, which helps prioritise attention." So these need mixing around.

So let's pause the video and get our events into the correct order of what happens.

Okay, let's go through our answers.

So hopefully we said first should be up, "Identifying all the potential risks to citizens." Then, "They rank the potential risks according to the level or likelihood of the risk, which helps prioritise their attention." And then finally, "They make plans to reduce the possible negative impacts of any risks." So if we managed to get these events in the correct order, well done us.

More so than ever before, the UK government have to respond and manage the risk of cyber attacks.

In response to escalating cyber threats, the government introduced the Cyber Security and Resilience Bill in 2024, which is due to be made law in 2025.

This legislation aims to strengthen the nation's cyber defences by enforcing strict security measures across various sectors.

The bill mandates compliance with established cybersecurity standards, regular audits and reporting.

Additionally, the government launched GovAssure, a cybersecurity scheme, in 2023, which involves comprehensive assessments of government departments to bolster resilience against cyber attacks.

By putting these measures in place, the government seeks to protect critical infrastructure and maintain public trust in digital services.

This prepares the country for cybersecurity risks and also reduces the risk for individual citizens.

Alex says, "I'm glad the government are preparing for more cyber attacks.

Statistics from January 25 show that cybercrime costs the UK up to 4.

6 billion pounds a year, which is really costly for our economy." It's quite a lot of money, isn't it? Jun says, "That's a lot of money.

Based on the amount of cyber attacks in 2024, there are an estimated 14.

8 cyber attacks against the UK businesses every minute." This is crazy, the amount of cyber attacks that are happening.

So let's have a go at placing the facts in the correct column to explain two risk management strategies to prevent cyber attacks in the UK.

So we have Cyber Security and Resilience Bill on one side and GovAssure on the other.

So which one was in 2023 and 2024? Which one prepared legislation? Which one looked at assessments of government departments? So with these six facts, have a go at putting them in the correct columns, under Cyber Security and Resilience Bill, and GovAssure.

Pause the video and have a go.

Okay, so it's time for our answers now.

So 2023 should go under GovAssure.

2024 should go under Cyber Security and Resilience Bill.

Well done if we got that right.

Prepared legislation should go under Cyber Security and Resilience Bill.

Assessments of government departments went under GovAssure.

Established cybersecurity standards goes under Cyber Security and Resilience Bill, which leaves us with protects digital infrastructure with GovAssure.

So we had three in each column.

Well done if we've got those correct.

The government also works to prevent financial problems by keeping a close watch on businesses and updating rules when needed.

In February 2025, it was reported that the Financial Conduct Authority, FCA, will be investigating private investment companies to make sure they are being fair and not taking advantage of investors.

This shows why strong rules and careful checking are important in the fast-growing investment industry.

By taking action early, the government helps keep the financial system fair and stable, protecting people's money and minimising risk to everyone in society.

If the government does not work to prepare for risks, our circular economy would suffer.

The UK economy depends on things like being safe and healthy.

Otherwise, the NHS will need a larger budget, so it's important that in a circular economy the government try to prepare and mitigate risks in all areas of life.

One way the government prevents financial issues is by having an independent group, the Office for Budget Responsibility, or OBR.

They check how money is being spent.

The OBR looks at the country's finances, predicts future spending, and makes sure the government is making smart financial decisions.

This helps build trust in the economy and shows that the government doesn't overspend or make risky financial moves.

The government also has a plan called the UK Government Resilience Framework, which was written in 2022, and helps the country prepare for big problems like financial crashes, natural disasters, or other emergencies.

This plan makes sure that different parts of the government and businesses know what to do if something goes wrong.

This helps to reduce the damage and keep the economy running and stable, which keeps prices down for us all.

Andeep says, "The government seem to have lots of legislation and policies to prepare for risks.

I'm pleased they take our safety and security so seriously.

Do you think all this legislation helps prepare us to minimise or prevent risks, Sofia?" Sofia says, "As long as they are followed, they are great because they put together a framework for how to prepare, so everyone is clear on what to do and how to do it.

I think it definitely helps, Andeep." After the 2008 financial crisis, the UK government introduced new rules to ensure banks do not take dangerous risks with money.

These rules help prevent another major financial disaster by making banks and financial companies more careful with their lending and investments.

This helps project jobs, businesses, and people's savings.

The UK's economy is connected to the rest of the world, so the government also works with other countries to prevent economic problems and improve risk management.

By being part of groups like the G20, which you might have heard of before, the UK can help make international agreements that keep the global economy stable, which in turn protects businesses and workers in the UK.

These strategies help the UK government manage risks, avoid economic decline, and keep the country financially strong for the future.

So let's match the government strategy with its aims. So we have the Financial Conducts Authority.

What was its aim? The Office for Budget Responsibility, or OBR.

What was their aim? And the UK Government Resilience Framework, what was that aim? So let's pause the video and think about matching the government strategy to its aim.

Okay, time for answers.

So hopefully we've managed to match Financial Conducts Authority with investigate private investment companies.

The OBR checked how money was being spent.

Which leaves us with the UK Government Resilience Framework, helps us prepare for financial crises.

Well and if we've matched those up correctly.

For this task, I would like us to write a news article explaining how the government manages financial risks.

Use the heading, "How the UK Government Protects Our Economy: Are We Safe?" And include the following.

So we need to include why managing financial risks is important and what could happen if the government didn't take action.

We need to include how the OBR helps keep government spending under control.

What the UK Government Resilience Framework is and how it helps prevent financial disasters.

We need to include why the UK works with global groups like the G20 and how this helps keep the economy stable.

And we also need to include why these risk management strategies are important for the future of the UK.

So a lot to include in our news article.

So use the heading that we've suggested and have a go at trying to include all those bullet points.

When you're ready, pause the video, and have fun with this task.

Okay, so our answer might look something like ours.

So we've said, "The UK government has a huge responsibility to keep the economy stable and prevent financial risks.

But how do they do it? Well, with careful planning, strict financial rules, and international cooperation.

Without these strategies, which aim to stop problems before they become crises, the UK could face significant job losses, bank failures, and rising prices.

But are these measures enough? One way the government prevents financial problems is through the Office for Budget Responsibility, or OBR.

This independent group checks how the government is using money and predicts future spending.

If the government overspends, it could lead to national debt, which might result in high taxes or cuts to public services.

By monitoring spending and making sure financial decisions are sensible, the OBR helps maintain trust in the economy and prevents reckless government borrowing.

To make sure the country is ready for financial risks, the UK Government Resilience Framework was created in 2022.

This plan helps prepare for major disruptions, including financial crashes, natural disasters, and cyber attacks.

It ensures that different parts of the government and businesses work together to reduce damage and keep the economy running smoothly.

The UK is connected to the global economy, meaning financial problems in other countries also affect us.

That's why the government works with international organisations like the G20 to prevent major financial disasters.

By sharing information, setting global financial rules, and supporting struggling economies, the UK helps to keep international trade and markets stable.

The government has several strategies to manage financial risks and prevent economic decline.

By tracking government spending, preparing for emergencies, enforcing banking rules, and working with other countries, they try to keep the economy stable and protect businesses and workers.

However, risks will always exist and challenges like climate change and global conflicts may require even stronger risk management in the future.

And so the question remains, is the government doing enough?" So your answer might have included some of ours.

You might have included about the G20, you might have talked about certain different risks and financial risks, but well done on your efforts with this task.

It's a big task, so well done.

We have now come to the end of our lesson on "How does the UK government manage risk?" and I'm gonna summarise it for us.

The UK government uses risk management strategies to prepare for and handle threats that could harm the economy, such as financial crises, cyber attacks, and natural disasters.

They use public health planning to prepare for pandemics, and cybersecurity measures like the Cyber Security and Resilience Bill to protect against online threats.

Financial risks are managed through regulations and organisations like the FCA.

They also plan for emergencies with the UK Government Resilience Framework, and work with global organisations to protect the economy.

These risk management strategies help keep the economy stable, protect jobs and businesses, and balance the budget.

So there was a lot to learn in our lesson today on "How does the UK government manage risk?" I hope we've learned a lot, I hope we've enjoyed it, and thank you for your efforts.

I hope to see you in the next one.