Agenda item

The Director of Finance, Assets and Information Services will submit a report presenting a draft report to be submitted to Cabinet on the 18^th May, 2016 on a review of the Strategic Risk Register undertaken in March, 2016.

The Director of Finance, Assets and Information Services submitted a report presenting a draft report to be submitted to the Cabinet on the 18^th May, 2016 on a review of the Strategic Risk Register undertaken in March 2016.

The report, which was presented by Mr A Hunt, Risk and Governance Manager formed part of the Committee’s assurance process where it was agreed that following the completion of the review of the Strategic Risk Register, the Committee consider the latest version and provide appropriate comments thereon.

The Register contained those high level risks that were considered significant potential obstacles to the achievement of the Authority’s Corporate Objectives.  It was important that the Register remain up to date and be reviewed regularly in order to accurately reflect the most significant risks to the achievement of objectives and facilitate timely and effective mitigations to those risks.

Following a review of the Strategic Risk Register in October 2015, a further review had been undertaken in March 2016 the outcomes of which were detailed within the report.  Mr Hunt outlined in some detail the way in which the register had been reviewed together with the role of the Senior Management Team in this process.  He commented on the main components of the review and the items included.

The report outlined:

·         The key risks across the six ‘concern’ rating classifications

·         The changes to the risks logged since the last review

o    The upgrading from ‘amber 4 to amber 3’ of risk 3034 ‘Failure to deliver the Medium Term Financial Strategy’ in view of the uncertainties surrounding the Comprehensive Spending Review and Autumn Statement and the potential impact on future cuts arising from savings yet to be identified from the Chancellors statement in March 2016

o   The removal of risk 3030 ‘Failure to be prepared for an emergency response of business continuity threat’

o   The inclusion of risk 3792 ‘Failure to be prepared to assist in the event of an emergency resilience event in the region’ and risk 3793 ‘Failure to ensure that appropriate disaster recovery arrangements are in place to ensure the Council is able to recover in the event of a business continuity threat or incident’ as this gave a clear distinction between the two activities and mitigations proposed

o   The development and inclusion, following recommendation made at the last review, of risk 3794 ‘Failure to influence the governance arrangements underpinning and controlling the emerging City Region Deal Devolution Deal enable an appropriate blend of risk and reward for the Council’

o   Details of the average risk category score for the SRR from the ‘Zero-based’ review in March 2013

o   The slight variance in the average concern rating which was directly attributable to the changes to risk 3034 and the inclusion of the new risks

·         The significant/red risks and new and emerging risks and  the risk mitigating actions

·         Other significant changes to the Strategic Risk Register

A further review of the Register was now programmed with other governance related reports relating to Corporate Finance and Performance management in order for the Cabinet to receive and consider governance related reports as a broad suite of documents.

The report and Register indicated how assurance against significant risk was being managed appropriately and Appendices to the report provided details of:

·         The background to the Strategic Risk Register

·         The worsened risks

·         The ‘direction of travel’ trends

·         The risks that had been completed/closed

·         The new and updated risk mitigation actions

·         A copy of the full Strategic Risk Register

In the ensuing discussion, particular reference was made to the following:

·         In relation to risk 3027 ‘Failure to manage organisational change – ‘Risk of Destabilisation of the Organisation’, details of the Employee Engagement: ‘Tell Us What You Think’ Month and Employee Survey, an analysis of and consideration of the results and feedback would be provided.  It was noted, however, that this had been an extremely positive exercise

·         No risks had been included in relation to the potential impact of Brexit.  Arising out of this discussion the Director of Legal and Governance  briefly commented upon the restrictions placed upon Local Authorities in relation to comments which could be made about issues upon which there was a Referendum within a 28 day period of such a Referendum

·         One Member questioned whether or not cognisance had been given to the inclusion of a risk to take account of what was referred to colloquially  as the LGA ‘Graph of Doom’ - the point at which Local Authority Spending became unsustainable as a result of the reduction in funding.  The Director of Finance, Assets and Information Services commented that this was not strictly a risk but more a Financial Management matter

·         Arising out of the above, and referring to risk 3034 ‘Failure to deliver the Medium Term Financial Strategy’, it was noted that a full review was to be undertaken the results from which would be fed into the 17/18 four year plan

·         Referring to risk 3303 ‘Failure to adapt the Authority into a sustainable organisation – Failure to maintain current services’, questions were asked as to whether or not the Council had a methodology to assess how services were received by citizens.  In response, the Director of Finance, Assets and Information Services, the Service Director Finance and the Director of Legal and Governance commented upon the surveys which had been undertaken both with staff and with residents.  Arising out of this discussion, it was suggested that these matters should be reflected within the risk register

·         Reference was made to risk 3025 ‘Failure to safeguard Service Users’ and particularly in the light of issues arising within a neighbouring authority questions were raised regarding the paucity of information about children and mitigating actions and levels and assessments of risk.  It was noted, however, that underpinning the strategic plan were individual department and service plans.  In addition it was also important to note the Safeguarding Adults and Safeguarding Children’s Boards roles in this area.  Mr Hunt, however, stated that reference to these issues would be noted within the SRR.

RESOLVED that the report on the outcome of the recent review of the Strategic risk Register in relation to the management, challenge and development of the Register be noted and the Committee continue to receive periodic updates as to the progress of the actions taken and their impact on the Strategic Risk Register.