Issue - meetings

Executive Member for Corporate Policy and Resources.

RESOLVED to note the Q2 update on risk management provided by the report and associated annexes.

The Executive Member for Corporate Policy and Resources, Councillor Lewanski, introduced the report which provided an update on risk management in Quarter 2 2021/22. No new strategic risks had been identified and none were recommended for closure. The Executive was provided with an update on one red rated operational risk in the Part 2 exempt annex.

The report was considered by the Audit Committee on 25 November 2021. The Committee made several comments on the risks and the presentation of information in the risk registers, and these would be reflected on as part of future risk management reporting.

In response to a question from a Visiting Member, it was confirmed that future reviews would consider the rationale to include climate change as a strategic risk.

RESOLVED to note the Q2 update on risk management provided by the report and associated annexes.

To note the Q2 update on risk management provided in the report and associated annexes and make any observations to the Executive.

The Committee was apprised that the report provided an update on risk management in Quarter 2 2021/22. No strategic risks were proposed for closure and no new risks were being recommended.

It was explained that only summary risk information had previously been provided to the Committee as the full risk registers were always available to members in the Modern.Gov library. However, having considered comments made at the previous meeting, the full risk registers were now appended to the papers, and some presentational changes had been made.

The suggestion of a stand-alone ‘commercial activity’ risk had been reflected upon and it was felt that financial sustainability (SR2) covered this risk. Commercial risks would be addressed in the Commercial Strategy Part 2 currently in development. In the quarter 3, all risks would be reviewed and updated for 2022/23, and as part of this consideration would be given as to whether it would be more appropriate to open a specific strategic risk regarding commercial investment and commercial projects (rather than incorporating within the broader ‘financial sustainability’ risk).

Members questioned the risk around parking receipts over the next couple of years. It was explained that the position shown was that at the end of quarter 2. The draft budget covered parking receipts in detail and the trajectory was smoothing. The current position reflected a £1.3 million loss next year; however, this may be revised within the final budget. There had been a change in behaviour, and this needed to be accounted for. There would be a strategy to consider alternative uses for some car parks and plans would be made accordingly.

Following a comment from a member, it was noted that climate change was a live issue that the Council was actively addressing but that inclusion of climate change as a strategic risk could be considered for 2022/23.

It was confirmed that the scoring (likelihood and impact) related to the residual risk –for example in relation to cyber security (SR7), it was confirmed to the Committee that taking into account the mitigation actions, negative impacts to the organisation from a cyber security attack was considered unlikely, but if they were to occur could be significant.

The Committee considered planning system reform (SR12) and it was noted that the downward trajectory of the scoring reflected the likelihood of impact within the short term (2021/22) and agreed that planning system reform would not be resolved in the short term.

A member felt that some of the terminology within the report could be enhanced and this would be considered by officers. The Risk Management Framework would be shared with the Committee.

RESOLVED that:

(i)            The Committee note the Quarter 2 update on risk management provided in the report and associated annexes: and

(ii)           The comments made would be fed back to the Executive.