Agenda item

(Director of Finance & ICT) To consider the attached report (FPM-024-2012/13).

The Senior Finance Officer (Risk & Insurance) presented a report on the Corporate Risk Register and the Risk Management documents.

The Senior Finance Officer stated that the Corporate Risk Register and Risk Management documents had been considered by both the Risk Management Group on 25 February  and the Corporate Governance Group on 27 February 2013. These reviews had identified amendments to the Corporate Risk Register and minor amendments to the wording of the Corporate Risk Documents.

The Senior Finance Officer reported that five amendments to the Corporate Risk Register had been proposed as a result of the recent reviews. Risk 1, Recruitment Restrictions, had been removed as the Cabinet had revoked this restriction in January 2013. A new risk had been added (37) in respect of the Local Land and Property Gazetteer and had been scored as Low Likelihood, Critical Impact (D2). An additional Vulnerability, Trigger and Consequence had been added for Risk 3, Potential Difficulty producing the Local Plan to Timetable, to cover budgetary aspects. The effectiveness of control for Risk 17, Significant Amount of Capital Receipts spent on Non-Revenue Generating Assets, had been updated to reflect the Capital Programme. The Vulnerability for Risk 29, Gypsy Roma Traveller Provision, had been updated as the new Gypsy Traveller Accommodation Assessment was now underway.

The Senior Finance Officer added that the Council’s Risk Management Strategy, Risk Management Policy Statement and the terms of reference for the Risk Management Group had been reviewed and some minor amendments proposed, as outlined in the report. The Cabinet Committee was requested to approve these documents for adoption at the next meeting of the Cabinet.

The Senior Finance Officer informed the Cabinet Committee that the Director of Finance & ICT and the Chief Executive had met with an external consultant to discuss the options for the future methodology and documentation for Risk Management. The consultant had confirmed that, whilst the existing arrangements and documentation remained robust and valid, some authorities had used the demise of the Audit Commission as an opportunity to streamline the Risk Management process. Consequently, it had been decided to devote a Management Board meeting in May 2013 to a fresh consideration of corporate risks and how they were recorded and presented. This could result in a very different Corporate Risk Register being presented to the next meeting of the Cabinet Committee.

The Cabinet Committee requested that the risk rating for Risk 3 (Potential Difficulty producing the Local Plan to Timetable) be reviewed during the next quarter; the Director of Finance & ICT reassured the Cabinet Committee that all risks above the Tolerance Line were reviewed every cycle, and that Risk 3 would be reviewed as a matter of course

Recommended:

(1)        That Risk 1, Recruitment Restrictions, be deleted;

(2)        That an additional Vulnerability, Trigger and Consequence be added for Risk 3, Potential Difficulty producing the Local Plan to Timetable, to cover budgetary aspects;

(3)        That the Effectiveness of Control for Risk 17, Capital Receipts spent on non-revenue generating assets, be amended to reflect the current Capital Programme;

(4)        That the Vulnerability for Risk 29, Gypsy Roma Traveller Provision, be amended to reflect the new Gypsy Traveller Accommodation Assessment;

(5)        That a new Risk 37 in respect of the Local Land and Property Gazetteer be added and scored as Low Likelihood, Critical Impact (D2);

(6)        That the current tolerance line on the risk matrix be considered satisfactory and not be amended;

(7)        That, incorporating the above agreed changes, the amended Corporate Risk Register be approved;

(8)        That the revised Risk Management Strategy be adopted;

(9)        That the revised Risk Management Policy Statement be adopted; and

(9)        That the updated Terms of Reference for the Risk Management Group be noted.

Reasons for Proposed Decision:

It was essential that the Corporate Risk Register was regularly reviewed and kept up to date. The annual review of the corporate risk management documents ensured that the risk management process remained relevant and up to date.

Other Options Considered and Rejected:

To suggest new risks for inclusion or amendments to the scoring of existing risks.

To further amend the revised risk management documents as presented.