Agenda item

(Director of Governance) To consider the attached report (FPM-001-2015/16).

The Director of Resources presented a report regarding the Council’s Corporate Risk Register.

The Corporate Risk Register had been considered by both the Risk Management Group on 28 May and Management Board on 3 June 2015. These reviews identified amendments to the Corporate Risk Register and also considered and scored a new risk for Housing Capital Finance. They included the following;

(a)          Risk 1 - Local Plan

The Action Plan had been updated to advise the progress made implementing the new Staffing Structure, although one senior planning post remained unfilled.

(b)          Risk 2 - Strategic Sites

The Effectiveness of controls/actions had been amended to advise the updated position of the key sites.

(c)          Risk 3 - Welfare Reform

The Vulnerability had been amended in accordance with the Government pledge to reduce the overall welfare bill by £12 billon.

(d)          Risk 4 - Finance Income

The vulnerability had been amended to remove the possible loss of the New Homes Bonus following the outcome of General Election on  2015. A new vulnerability had been added to advise the uncertainty around the outcome of a large number of rating appeals. The Trigger had been updated to now focus on the possibility of reduced demand for services and changes in legislation. The Key Date had been amended to 20 July 2015 for the Financial Issues Paper.

(e)          Risk 6 - Data / Information

The effectiveness of controls/actions shows there had been no lapses so far in 2015/16. An additional Required further management action had been added to advise of a working group, set up to eliminate duplication in data storage and the risk of any inadvertent Data Protection issues.

(f)           Risk 9 - Safeguarding

The risk had been amended to reflect the progress that had been made and the two triggers centring on training and awareness had been removed. The Action Plan advises that the Council had developed policies to deal with emerging safeguarding issues. The action plan also states that these policies had been used as examples of best practice across Essex. With this progress in mind the risk score had been amended from B2 High Likelihood/Moderate Impact to C2 Medium Likelihood/Moderate Impact.

(g)          New, Risk 10 - Housing Capital Finance

At this committee on 19 March 2015 Members asked for an additional risk to be considered, which the vulnerability centres on the need for the Council to spend right to buy receipts on qualifying capital schemes within set timescales. Failure to do so would result in having to pay this money back to the Government along with interest at a penalty rate. To date no funds had been lost, however continued close monitoring was required. Both the Risk Management Group and Management Board Scored the risk B2 High Likelihood/Moderate Impact.

Councillor Stallan raised concerns over the risk in relation to the North Weald Market. The Director of Resources advised that with the reduction in income the risk had reduced.

Councillor Lion commented on the transformation project and whether it should be highlighted as a risk. The Director of Resources advised that this would not be a risk at present although it could be a consideration following the budget announcements on 8 July 2015, if there was a greater need to find efficiencies. The Committee agreed that the transformation project should be kept under review.

Councillor Mohindra commented on potential rate refund increase costs of £3 million, which would need to be monitored. 

Recommended:

(1)          That the Action Plan for Risk 1 – Local Plan be updated;

(2)           That the Effectiveness of controls/actions for Risk 2 – Strategic Sites be updated;

(3)          That the vulnerability within Risk 3 – Welfare Reforms be amended;

(4)          That the Vulnerability, Trigger and Key Date for Risk 4 – Finance Income be amended;

(5)          That the additional Required further management action for Risk 6 – Data/Information be agreed;

(6)          That the Vulnerability, Trigger, Action Plan and score for Risk 9 – Safeguarding be updated;

(7)          That the new Risk, Action Plan and score for Risk 10 – Housing Capital Finance be agreed;

(8)          That the amended Corporate Risk Register be recommended to Cabinet for approval.

Reasons for Decisions:

It was essential that the Corporate Risk Register was regularly reviewed and kept up to date.

Other Options Considered and Rejected:

Members may suggest new risks for inclusion or changes to the scoring of existing risks.