Agenda item

To consider the attached report (FPM-019-2018/19).

The Risk Management & Insurance Officer, E Higgins presented a report regarding the Councils Corporate Risk Register.

 

He advised that it had been considered by the Risk Management Group on 17 December 2018 and Leadership Team on 19 December 2018. The reviews identified updates for the current risks and no new risks, although both of the groups agreed the need for a review of Council’s Risk Management Strategy by September 2019.

 

Furthermore, several of the Risk Owners required updating following the implementation of the new senior management structure. These were as follows;

 

Risk No.	Risk Name	Former Risk Owner	New Risk Owner
3	Welfare Reform	Alan Hall	Rob Pavey
6	Data/Information	Simon Hill	Rob Pavey
9	Safeguarding	Alan Hall	Julie Chandler
10	Housing Capital Finance	Alan Hall	Paul Pledger
12	Waste Management	Derek Macnab	Qasim Durrani

 

The amendments to the Corporate Risk Register included the following;

 

(a)          Risk 1 - Local Plan

 

The Council had submitted the Local Plan to the Secretary of State and the risk Vulnerability, Trigger and Consequence had been extensively re-written. The risk Consequence for not achieving an adopted plan remained at an increased annual requirement of 923 homes, rather than the 518 set by the Council. Therefore the increase would result in vulnerability to the planning appeal decisions and potential development in the Green Belt, as the presumption in favour of sustainable development would apply.

 

The Effectiveness of Controls/Actions and Required Further Management Action relating to the Epping Forest Special Area of Conservation (SAC) had also been updated.

 

(b)          Risk 2 - Strategic Sites

 

The Effectiveness of Controls/Actions and Required Further Management Actions had been updated to reflect the Landmark Site (Former Winston Churchill), St John’s Road Development and the disposal strategy of Pyrles Lane Nursery and relocation of services to Town Mead. 

 

(c)  Risk 3 - Welfare Reform

 

The Required Further Management Action was updated to include the need for an action plan to be developed by the end of 2019/20, for the baseline effects of Universal Credit for implementation in 2020/21. The resulting Critical Success Factor and Measure identified the impact of Universal Credit on all services and the necessary mitigating actions.

 

(d)  Risk 4 - Finance Income

 

The risk Vulnerability had been updated to reflect increasing dependence on locally generated income and little information had been available relating to funding from 2020/21. The increasing possibility of a no deal Brexit could cause challenging trading conditions for businesses, which could impact a number of the Council’s income sources including commercial rentals and business rates. The changes in economic conditions were also reflected in the updated risk Trigger.

 

(e)  Risk 5 - Economic Development

 

The Existing Controls/Actions to Address Risk had been updated to advise that the Economic Development Plan has been drafted and presented to the Economic Development Board and the Required Further Management Action needed an Economic Development Implementation Plan.

 

(f)   Risk 7- Business Continuity

 

The Effectiveness of Controls/Actions had been updated to advise that an audit of Business Continuity arrangements had commenced.

 

(g)  Risk 9 - Safeguarding

 

The Required Further Management Action had been updated to advise that training records were to be held and maintained by the People Team via the iTrent system when it was fully operational.

 

(h)  Risk 10 - Housing Capital Finance

 

The Critical Success Factor and Measures had been amended to advise that any impact from Central Government Policy changes must be minimised as far as possible.

 

(i)    Risk 11 - Transformation Programme

 

The Existing Controls/Actions to address risk were updated to advise that Leadership Team considered Transformation issues at their weekly meetings. The Effectiveness of Controls/Actions had also been updated, to advise that the People Strategy was at Level 2 Service Manager Implementation Stage; the People Strategy had been considered by Overview & Scrutiny in December 2018; and that Cabinet agreed the revised Accommodation Strategy on 10 December 2018.

 

The Required Further Management Action advised that the Leadership Team and Transformation Programme Board continued to monitor projects and ensure adequate human and financial recourses were available. Furthermore, part of the Overview and Scrutiny Framework Task & Finish Panel would consider Performance Monitoring.

 

(j)    Risk 12 – Waste Management

 

The Effectiveness of Controls/Actions had been updated to advise that the Recycling Index Unit Rate (RIUR) would continue to be monitored due to the volatility of sale prices for recycling materials

 

Finally, it was felt that the methodology and potential use of Pentana could be explored to record and present risks.

 

RESOLVED:

 

(1)        That the updated Risk Owners be noted;

 

(2)        That updated risk Vulnerability, Trigger, Consequence, Effectiveness of Controls/Actions and Required Further Management Action for Risk 1 be updated;

 

(3)        That the Effectiveness of Controls/Actions and Required Further Management Action for Risk 2 be updated;

 

(4)        That the Required Further Management Action and Critical Success Factors and Measures for Risk 3 be updated;

 

(5)        That the Vulnerability and Trigger for Risk 4 be updated;

 

(6)        That the updated Effectiveness of Controls/Actions and Required Further Management Action for Risk 5 be updated;

 

(7)        That the updated Effectiveness of Controls/Actions for Risk 7 be updated;

 

(8)        That the updated Required Further Management Action for Risk 9 be updated;

 

(9)        That the updated Effectiveness of Controls/Actions and Critical Success Factors and Measures for Risk 10 be updated;

 

(10)      That the updated Existing Control/Actions, Effectiveness of Control/ Actions and Required Further Management Action for Risk 11 be updated;

 

(11)      That the updated Effectiveness of Controls/Actions for Risk 12 be updated;

 

(12)      That the necessary review of the Corporate Risk Strategy be noted; and

 

RECOMMENDED:

 

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

 

Reasons for Decision:

 

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.