Agenda item

The Executive Member for Corporate Policy and Resources.

The Portfolio Holder for Corporate Policy and Resources, Councillor James King, gave an overview of the Risk Management 2024/25 report which introduced the proposed strategic risks for 2024/25 and presented the 2024/25 assurance framework to Members.

The strategic risks for the year ahead – in this case 2024/25 – are set as part of Quarter 3 reporting each year so there is a live risk register from 1 April 2024. The strategic risk register from this year (2023/24) will not, however, be formally ‘closed down’ until Quarter 4 reporting, which will come to the Executive in July. The report set out several changes to the strategic risks for the coming year and introduced a new document as part of the updated risk management strategy – the Assurance Framework for 2024/25. This aims to capture the wide range of risks the Council faces and manages on a day-to-day basis. It records controls and mitigations relating to each area of risk and provides an assessment of whether these are sufficient.

The Audit Committee considered this report at its meeting on 13 March 2024. Members of the Audit Committee welcomed the Assurance Framework as a useful tool to understand risk management at the Council. Members discussed reference in the report to the potential closure of risk SR5 (Cost pressures affecting the viability of Council developments) in Quarter 4. Some Audit Committee Members raised concerns about this. There was no suggestion that this risk be closed as part of the report to Executive. If the Executive does not endorse its closure next quarter, then the risk will transfer into 2024/25.

The Committee’s feedback had been discussed with officers – it was considered that the best opportunity to discuss whether this specific risk should be closed is via the Quarter 4 report.

It was noted that in agreeing Recommendation (i) that Executive Members be aware that SR5, SR6 and SR8 from 2023/24 will also carry forward if they are not closed in Quarter 4.

The Leader, Councillor Biggs, noted that he felt that the Strategic Risk should not be closed until a lessons learned exercise has been completed and any changes recommended be made. The Executive can reinstate any Strategic Risks for 2024/25 at the next meeting. The Audit Committee can discuss them as well. Lessons learned were ongoing.

Visiting Member, Councillor Harrison, who had been a substitute at the Audit Committee meeting on 13 March felt strongly that the Strategic Risk 5 should not be closed down. He appreciated the assurances given by the Leader, but he preferred if this Strategic Risk was carried forward into April 2024/25.

Other Visiting Members asked about references to the current closure of the Harlequin theatre and the Reinforced Autoclaved Aerated Concrete (RAAC) issue. There was a risk of loss of culture to residents while it was closed. Members asked how long it would be closed.

The Head of Corporate Policy, Projects and Performance said the current closure of the Harlequin was a live issue that the Council was actively dealing with. It was also an operational risk and there were associated risks captured in the assurance framework relating to the building and estate.

Members asked for the forward plan for this asset to be communicated to residents when this was agreed.

Members also asked about Earlswood lake and repairs and whether this was a specific risk that should be in the Risk Management framework. Officers confirmed that Earlswood lakes repairs was an operational risk. The register was not part of this report to Members. The register is available to Members on the Modern.Gov website. Any questions could be taken outside the meeting.

RESOLVED – that the Executive:

(i)               Approves the strategic risks for 2024/25 as detailed in annex 1.

(ii)             Notes the 2024/25 assurance framework (available at annex 2) and makes any comments to the Head of Corporate Policy, Projects and Performance.