Agenda item

(Director of Resources) To consider the attached report (AGC-022-2016/17).

The Director of Resources presented a report on the effectiveness of the arrangements for Risk Management within the Council.

The Director reminded the Committee that its terms of reference included the consideration of the effectiveness of the Council’s Risk Management arrangements. This contrasted with the role of the Finance & Performance Management Cabinet Committee, which was to advise and make recommendations to the Cabinet on Risk Management and Insurance issues. The internal arrangements for Risk Management had not changed during the year. Each Directorate had a nominated ‘Champion’ for Risk Management who represented their Directorate at meetings of the Risk Management Group. All Directorates were required to have a section on Risk Management in their Business Plans and have a standing item regarding Risk Management on the agenda of their management team meetings. This was to ensure that Directorate Risk Registers and Action Plans were regularly monitored.

The Director stated that, at the corporate level, the Risk Management Group met quarterly to discuss issues and recommend alterations for the Corporate Risk Register to the Corporate Governance Group. The Corporate Governance Group considered the proposed changes from the Risk Management Group and undertook a separate review of the Corporate Risk Register to ensure that there were not any further risks to be considered for inclusion. Recommendations for updating the Corporate Risk Register were then considered by the Finance & Performance Management Cabinet Committee before being recommended for approval by the Cabinet. The key updates that had been made to the Corporate Risk Register during 2016/17 were outlined for the benefit of the Committee.

The Director reminded the Committee that, when considering this report a year ago, it had requested reassurance on the actions taken to mitigate large risks to the Council. For Risk 1, relating to the Local Plan, some of the actions included: an Internal Audit Review had generated a substantial assurance rating; external contractors had been used for specific pieces of work; Memorandums of Understanding had been agreed with neighbouring authorities; and, as part of the agreed Local Development Scheme, a public consultation had been undertaken on the draft Local Plan during the autumn of 2016. For the Epping Forest Shopping Park, the risk concerning attracting suitable tenants at appropriate rents had been addressed through the use of two agents with expertise in Retail Parks. And for Risk 4, covering the Council’s income and finances, the Council had been effective in managing and reducing costs through efficiency programmes and the competitive tendering of services.

The Director advised the Committee that the internal audit of Risk Management for 2015/16 had been given a rating of substantial assurance. There was just one recommendation that was scored as a priority 2 and this had now been actioned. 

In response to questions from the Committee, the Director of Resources reiterated that the engagement of Colliers and Harveyspackfield had addressed the risk regarding the attraction of tenants for the Epping Forest Shopping Park, and it was expected that all of the available space at the Shopping Park would be let before its planned opening in September 2017. The Director also reminded the Committee that the Council had been investing in Capital projects to generate future revenue streams for a number of years now, and this had been achieved without vastly increasing the need for the Council to undertake further borrowing. The Director reassured the Committee that any potential new risks to the Council were identified either by the Management Board, the Risk Management Group or the Finance & Performance Management Cabinet Committee.

Resolved:

(1)        That the arrangements for Risk Management within the Council be considered effective.