Issue - meetings

To consider the strategic risks for 2022/23.

RESOLVED:

That the Executive:

1.     Approve the strategic risks for 2022/23 as detailed in Annex 1, subject to the minor amendments set out by the Portfolio Holder in their introduction.

The Executive received the report on proposed Strategic Risks 2022/23 for the financial year ahead as set out in Annex 1 to the report.

Executive Member and Portfolio Holder for Corporate Policy and Resources, Councillor Lewanski, introduced the item. Strategic risks are those risks that have an impact on the medium to long term ambitions and priorities of the Council as set out in the Corporate Plan and Medium Term Financial Plan (MTFP).

In proposing the revised risks, the strategic risk register had undergone a thorough review of risks with review owners.

The Audit Committee considered the 2022/23 strategic risks at their meeting on 15 March 2022. The Committee made observations on two risks: Economic prosperity and reliance on the welfare system and the Ukrainian refugee crisis. The title of the new risk on economic prosperity was changed to ‘Challenging economic conditions for residents and businesses.’ The Ukrainian refugee crisis would be closely monitored as more information became available.

These changes were noted by the Executive.

Visiting Member, Councillor Booton, queried the risk description on climate change. It was proposed that the risk title for SR12 in 2022/23 be amended to ‘Climate change impact’. This was agreed by Executive.

RESOLVED:

That the Executive:

1.     Approve the strategic risks for 2022/23 as detailed in Annex 1, subject to the minor amendments set out by the Portfolio Holder in their introduction.

To note the identified strategic risks for 2022/23 as detailed in annex 1 and make any observations to the Executive.

The Head of Corporate Policy gave the definition of strategic risks as outlined in the report.  The risk register had undergone a thorough review with suggested changes from the Committee being incorporated.  The proposed draft strategic risks identified for the Council in 2022/23 were detailed within the report. The key differences from 2021/22 were the new risks on:

·                           Commercial investment – SR3 in 2022/23

·                           Cost pressures affecting the viability of Council development projects – SR6 in 2022/23

·                           Climate change – SR12 in 2022/23

This report would be considered by the Executive on 24 March 2022 and they had the authority to agree the strategic risks for the year ahead.

It was questioned when the Council would begin to receive income from current developments. For Marketfield Way, it was confirmed that key tenants had recently signed tenancy agreements and there was significant interest in the other lettings. The situation was kept under close review to ensure progress was maintained in the period prior to opening in 2023.

The situation was also very positive regarding the Council’s other new commercial units at Wheatley Court. Overall, there were therefore no current areas of concern and the profiling of income would become clearer as tenancies were agreed.

Reliance on the welfare system (current risk reference SR6 in 2021/22) was recommended to be combined into the risk on economic prosperity (SR4) in 2022/23. If these changes were approved by the Executive, the current risk would be closed in quarter 4. Committee members commented that this potentially diluted the risk of reliance on the welfare system, for example, the number of Ukrainian refugees that may be come to live in the borough was unknown and this should be a consideration moving forward. It was confirmed that this would be considered in quarter 4.

In response to a question regarding SR10 (Gatwick Airport), officers agreed to enquire as to when Members would begin receiving regular updates again on Gatwick Airport as they had previously.

In terms of SR11, Planning System Reform in response to a Government White Paper, the main area of concern for Members was the loss of local democratic control over planning matters. This potentially meant that the Planning Committee would be unable to approve plans in certain zones as it did currently, however officers confirmed that the detail on this was not yet available.

Members also noted that the IT risks relating to cyber security were to be addressed through the IT Strategy that was scheduled to be considered by Overview and Scrutiny on 17 March. All Members of Audit Committee had been invited to participate in this discussion.

RESOLVED that:

(i)            The Committee note the identified strategic risks for 2022/23 as detailed in annex 1; and

(ii)          Comments from the Committee be made to the Executive.