Issue - meetings

Risk management - Q4 2021/22

Meeting: 23/06/2022 - Executive (Item 9)

9 Risk management - Q4 2021/22

The Executive Member for Corporate Policy and Resources.

Supporting documents:

Decision:

RESOLVED:

That the Executive:

1.     Noted the Q4 2021 update on risk management provided by the report.

2.     Approved the closure of the following strategic risks in accordance with the reasoning set out in the report and in Annex 1:

·        SR6 – ‘Reliance on the welfare system’

·        SR9 – ‘Marketfield Way’

3.      Agreed that as part of Q1 reporting, officers consider the appropriateness of maintaining two separate strategic risks on challenging economic conditions, with an update brought to the Audit Committee and Executive in September.

Minutes:

Executive Member for Corporate Policy and Resources, Councillor Lewanski, updated the Committee on Quarter 4 risk management and strategic risk register (from January to March 2022). No new strategic risks had been identified. Two strategic risks were recommended for closure as set out in the report. These were:

·        Strategic Risk (SR 6) – Reliance on the welfare system; and

·        Strategic Risk (SR 9) – Marketfield Way (as good progress had been made on the site and in securing lettings).

At the end of Quarter 4, there was one red-rated operational risk. Additional detail on this was provided in the Part 2 exempt annex.

The Audit Committee considered the report at its meeting on 14 June 2022. The Committee had requested that the Executive consider maintaining two strategic risks for SR6 (Reliance on the welfare system) which focused on the impact on residents and the impact on businesses. As the current risk did not capture the current economic challenges facing residents, the recommendation remained that this risk was closed.

However, Councillor Lewanski moved a further recommendation to Executive, that as part of Quarter 1 reporting, officers consider the appropriateness of maintaining two separate strategic risks on challenging economic conditions, with an update brought to the Audit Committee and Executive in September.

RESOLVED:

That the Executive:

1.     Noted the Q4 2021 update on risk management provided by the report.

2.     Approved the closure of the following strategic risks in accordance with the reasoning set out in the report and in Annex 1:

·        SR6 – ‘Reliance on the welfare system’

·        SR9 – ‘Marketfield Way’

3.      Agreed that as part of Q1 reporting, officers consider the appropriateness of maintaining two separate strategic risks on challenging economic conditions, with an update brought to the Audit Committee and Executive in September.


Meeting: 14/06/2022 - Audit Committee (Item 6)

6 Risk management - Quarter 4 2021/22

To note the Quarter 4 2021/22 update on risk management provided by the report and make any observations to the Executive.

Supporting documents:

Minutes:

The Head of Corporate Policy, Projects & Performance introduced the report explaining that this provided Members with an update on Risk Management for quarter 4 for 2021/22. No new Strategic risks were identified and updates on the current strategic risks were provided.

 

A recommendation would be made to the Executive to close two strategic risks:

 

·         SR6 – ‘Reliance on the welfare system’. As previously reported to the Audit Committee and Executive in March 2022, this risk is recommended for closure as the nature of the risk has evolved such that there is now close alignment with the current risk on ‘Economic prosperity’ (SR5).

 

Following the Audit Committee’s review of the proposed strategic risks for 2022/23 at its March 2022 meeting, and reflecting on the proposal to combine SR5 and SR6 for the year ahead into a single risk reflecting the resident as well as the business element, the Executive agreed to clarify the title of the economic prosperity risk for 2022/23 and amend it to ‘Challenging economic conditions for residents and businesses’.

 

·         SR9 – ‘Marketfield Way’. This risk is recommended for closure due to good progress being made on site and in securing lettings, leaving the residual risk to be managed under business as usual arrangements.

 

As well as receiving an update on strategic risks, the Committee was also provided with updates on red rated operational risks.

 

The following observations by Members and responses to questions were made.

 

SR1 – Covid-19 Pandemic

 

It was questioned whether SR1 was more operational than strategic. The Head of Corporate Policy, Projects & Performance confirmed that the downward trajectory of the risk was reassuring and that it would continue to be reviewed to determine if it was appropriate to recommend closure of the strategic risk.

 

SR2 – Financial Sustainability

 

A Member of the Committee stated that he would provide some written questions following the meeting, including regarding this risk’s structure. There was good content and context however it was felt that there could be several risks within SR2 and this could mean that it was less focussed.

 

Officers welcomed the offer of written feedback and would consider it once it had been received.

 

SR3 – Local Government Reorganisation

 

It was questioned as to what the statement that reorganisation would not be a condition of securing a devolution deal meant in practice.

 

The Head of Paid Service explained that a seminar had been conducted with Councillor Tim Oliver (Chair of the County Councils Network and leader of Surrey County Council) to understand the mechanics of the White Paper and its implications. It was understood that County would look to get further powers from central government, however this did not mean that either one or a series of unitary authorities would need to be formed. County had been bidding for more powers and they wanted the 11 local authorities in the county to support them.

 

SR4 – Organisational Capacity and Culture

 

In response to a member question, it was noted that the next Employment Committee would consider making  ...  view the full minutes text for item 6