Agenda item

Information circulated under separate cover.

Members considered an extract from the Corporate Risk Register (June 2016 update) related to responsibilities covered by the Council’s Chief Executive’s Department. Additional information comprised a brief guide to Risk Management, a New Risk Matrix, and details of Risk Variables covering Impact (Severity) Guidelines and Likelihood (Probability) Definitions. Details were also provided of Corporate Risks/Organisational Issues as at March 2016 along with associated text on priority actions.

For the Register extract a general overarching view was suggested as an accompaniment to the Register – risks could also be amalgamated to reduce cost and the Register was now considered a little bulky. A need to further amend the Register was acknowledged, particularly on certain references to risks covered by the Regeneration and Transformation Division, now covered by the Environment and Community Services Department. It was also confirmed that risks corporately covered (by the Corporate Leadership Team) now included Children’s Services.

The Chairman suggested presentation of the Register extract twice per year to the Committee alternating with the Corporate Contract Register (CEX extract). However, should the Risk Register be considered by Audit Sub-Committee, it would not be necessary for Executive and Resources PDS to consider although the Committee would appreciate seeing any updates to the Register. If a risk had come to pass, the Chairman also suggested that it was no longer an issue for the Register - as such, officers were encouraged to review whether items listed in the Register continued to pose a risk.

It was suggested that the next training to Members responsible for risk management (CEX/AUD.0191) should be left to the 2018 Member Induction Training (provided no further training had been programmed). In view of claim related changes/trends in the insurance market, the risk register had been submitted to insurers the previous week for review.

On risks related to Treasury Management (CEX/ACT.0300) and Banking Failure (CEX/ACT.0298), the significance of losing a capital sum was far greater than losing interest earned on the capital sum; however, it was not unusual to see such risks “evened out” due to a tolerance of risk and assessment.

From details related to Corporate Risks/Organisational issues, it was not considered possible to identify specific risks e.g. withdrawing a service given financial reductions. In proposing priority actions, a timescale was suggested for their implementation. Reference was also suggested to how a risk is monitored and managed and whether it had materialised.

Given a risk of further Government funding reductions (CEX/FIN.0095) and the Council’s need to be financially self-sufficient by 2020, the new Contract Management System would be a key tool to help procure further savings. It would also incorporate the Risk Register and flag-up issues. Managers could use information from the system daily to manage their services.   

In regard to a risk of failing to provide adequate training to Members and officers responsible for risk management (CEX/AUD.0191), it was suggested that wording is needed on what might next happen should this be the case. An estimate of the financial impact of a risk was also suggested as was reference to a safety impact. In this regard, road safety schemes were subject to a cost justification process based upon a national formula applied to killed and seriously injured (KSI) cases at a location. The Chairman hoped that such a safety estimate could be evolved for other risk types so removing any need to repeat original work.  

In view of his impending retirement, thanks were conveyed to the Head of Audit for his work to the Council.