Agenda item

(Section 151 Officer) To consider the attached report reviewing the Corporate Risk Register and recommending the revised Risk Management Strategy to the Cabinet for approval (AGC-012-2020/21).

The Section 151 Officer, A Small, presented a report on the review of the Corporate Risk Register.

A Small reported that the Corporate Risk Register had been reviewed by the Officer Risk Management Group at its meeting on 9 September 2020, and the following revisions had been proposed:

• The Covid-19 risk had been removed as its affects had been adequately captured in many of the other corporate risks, especially the Financial Resilience and Economic Development risks.
• Risk 3 (Financial Resilience) had been upgraded given the size of the cost of Covid-19.
• Risk 6 (Business Continuity) had been downgraded as the Council continued to demonstrate the way it had coped with Covid-19.
• Risk 12 (Travel Plan) had been upgraded as it linked with Risk 11 (Accommodation Project) and the need to consider parking arrangements in light of commercial opportunities to rent out space at the Civic Offices.

A Small stated that the Council’s Risk Management Strategy had not been revised since September 2017. The Risk Management Strategy had been reviewed and updated to reflect the changes in reporting arrangements. In addition, the ‘Future Actions’ section reflected the need for the Council to define its risk appetite and engage better with staff, and the Risk Assessment matrix (Appendix 1 of the Strategy) had been updated to ensure the Council could better identify its medium (amber) and high (red) risks. The Committee was asked to consider the amended Risk Management Strategy and recommend it to the Cabinet for adoption.

Cllr S Heap opined that risk 10, Climate Emergency, should be scored as A1 not B2, and that there appeared to be no strategy for developing manufacturing or the arts within the District as part of risk 4, Economic Development. In addition, Cllr S Heap asked why the Council was so concerned about reputational damage for a number of the risks and whether risk 1, Local Plan, was such a high risk if the District Council got merged as part of Local Government Reform? The Councillor also enquired if there would be any answers forthcoming for the detailed questions that he had previously emailed in before the meeting.

A Small stated that the Council’s new Sustainability Officer had now started with the Council and the authority was now in a position to develop the necessary plans and actions. There was a high degree of uncertainty with Local Government Reform but it was still important to ensure the Council was prepared for whatever happened in the future. The perceived risks to the Council’s budgets were much sooner than 2024, and the Council needed to plan accordingly.

The Portfolio Holder for Finance & Economic Development, Cllr J Philip, acknowledged that reputational damage was irrelevant in certain cases as the Council would be blamed regardless of what had actually happened. However, it was significant in a number of instances to allow the Council to represent its residents properly. Cllr J Philip felt that it was hazardous to refocus the Council’s Risk Strategy on what might or might not happen in the future in relation to Local Government Reform. In respect of the Local Plan, each District Council was legally obliged to produce one, and it was unlikely that Local Plans would be merged as a result of Local Government Reform.

A Small reminded the Committee that the Council’s risks were not listed in risk order on page 22 of the agenda, this was simply a statement of the current risks facing the Council. The table on page 33 of the agenda illustrated better the risks in order of their likelihood and impact, with risks 4 – Economic Development – and 9 – Delays in Issuing Planning Permissions – rated as the highest. If Cllr S Heap was to forward his emailed questions to A Small then responses would be circulated to the Committee.

            Resolved:

(1)        That detailed responses to the questions from Cllr S Heap be circulated to the Committee by A Small;

(2)        That the current Corporate Risk Register, as revised by the Officer Risk Management Group, be noted; and

(3)        That the revised Risk Management Strategy be recommended to the Cabinet for adoption.