Issue - meetings

Risk management - Q1 2020/21

Meeting: 17/09/2020 - Executive (Item 36)

36 Risk Management - Quarter 1 2020/21

To consider the report of the Executive Member for Corporate Direction and Governance.

Supporting documents:

Decision:

RESOLVED:

1)               That the Executive note the Q1 2020/21 update on risk management provided in annex 1.

2)              That the Executive approve the new strategic risk identified in Q1 2020/21 (COVID-19: second wave/local lockdown), for inclusion on the strategic risk register.

Minutes:

The Executive Member for Corporate Direction and Governance, Councillor Lewanski, updated the Executive on risk management for Quarter 1 of 2020/21. During the quarter, one new Strategic Risk had been identified - COVID-19, second wave and/or a local lockdown. The Executive also noted that there were no Operational Risks that were red rated.

Councillor Lewanski explained that the Audit Committee received an update on risk management at its meeting on 9 September. The Audit Committee felt that SR3 ‘Local government reorganisation’ and SR5 ‘Organisational capacity and culture’ which were rated as Amber in Quarter one, should be rated Red due to the current circumstances surrounding them.

The Leader urged caution around the rating for Local government reorganisation, since there was yet to be sufficient information from the Government to make an adjustment to the risk rating. The Executive would consider the ratings during its preparations for reporting on Quarter 2. 

RESOLVED:

1)              That the Executive note the Q1 2020/21 update on risk management provided in annex 1.

2)              That the Executive approve the new strategic risk identified in Q1 2020/21 (COVID-19: second wave/local lockdown), for inclusion on the strategic risk register.

Reason for decision: In accordance with the Council’s risk management strategy, the Executive is required to receive regular updates on risk management.

Alternative options:

a)       Note the report and approve the newly identified strategic risk for inclusion on the strategic risk register.

b)       Note the report and not approve the newly identified strategic risk for inclusion on the strategic risk register.


Meeting: 09/09/2020 - Audit Committee (Item 14)

14 Risk management - Q1 2020/21

To note the Q1 2020/21 update on risk management provided by the report and in annex 1 and make any observations to the Executive.

To note the newly identified strategic risk detailed in the report and in annex 2 and make any observations to the Executive.

Supporting documents:

Minutes:

Members received an update on Quarter 1 2020/21 risk management reporting which set out the strategic and operational risks in the three months from 1 April to 30 June 2020.

Cllr V. Lewanski, Portfolio Holder for Corporate Direction and Governance, outlined the reports before the Committee. During Quarter 1 there were no red rated operational risks to consider. At the end of Quarter 1, no strategic risks were closed.

One new Strategic Risk was identified on the Council’s emergency response to a second wave or local lockdown due to COVID-19. In this event, the Council will be required to stand up its response to support residents and businesses. This will result in members of staff being redeployed and could result in significant disruption to the delivery of services. Members noted the newly identified Strategic Risk on COVID-19.This would be reported to the Executive at their meeting on 17 September 2020.

It was noted that in Strategic Risk 2 (SR2), Financial Sustainability, mitigating action included the importance of (i) adopting and implementing strategies that support sustainable income generation and (ii) taking forward income generating projects such as Horley Business Park, remains a priority.

Members made the following observations and comments for consideration by the Executive :

·         Strategic Risk 3 – Local Government Reorganisation. Members expressed concern that this Strategic Risk on Surrey County Council’s proposals for a unitary authority was rated amber. Due to the potential impact on this Borough Council, Members questioned whether this level of risk should be rated higher.

·         Strategic Risk 5 – Organisational capacity and culture – Members noted the impact of the COVID-19 pandemic and the need for the organisation to work differently at a time when the Council was recruiting a new Chief Executive Officer, had an Interim Head of Finance, and the Director of Investment and Commercial was also the Monitoring Officer. This Strategic Risk was rated amber. Members questioned whether this level of risk should be rated higher.

Cllr V. Lewanski, Portfolio Holder for Corporate Direction and Governance, said that the senior management team were working well to cover this role and felt the amber risk rating was suitable currently. He undertook to consider these observations as part of the end of the Quarter 2 review of the risk registers on behalf of the Executive.

Committee Chair, Cllr J. Bray thanked the Head of Projects and Performance, Doula Pont, who was leaving the Council at the end of September for her work and support for the Committee.

RESOLVED that:

(i)            the Quarter 1 2020/21 update on risk management and the Committee’s observations for Executive on Strategic Risk 3 (Local government reorganisation) and Strategic Risk 5 (Organisational capacity and culture) as set out in the Minutes be noted;

(ii)          the newly identified Strategic Risk on COVID-19 second wave response detailed in the report and in annex 2 be noted for consideration by the Executive.