Agenda item

The Committee notes the Quarter 3 2022/23 update on risk management provided in the report and associated annexes and make any observations to the Executive.

Catherine Rose, Head of Corporate Policy, Projects and Performance, explained that the report provided an update on risk management at the close of quarter 3.

In quarter 3, one strategic risk was recommended for closure, SR1 ‘Coronavirus Pandemic’.

·         Operating within the confines of, and responding to, Covid-19 has now become part of ‘business as usual’ for the Council, with disruption being proactively planned for and controls now in place. The impact of Covid-19 on the Council and wider society in general also continues to decline, therefore meriting the recommended closure of this risk in Q3 2022/23 reporting.

One operational risk (IT disaster recovery) was red rated and was reported to the Audit Committee within the part 2 exempt annex.

In response to a member question regarding the direction of travel being denoted as neutral in SR2 and SR4, despite the challenging economic climate currently being faced, it was explained that despite evolving external circumstances, taking into account mitigation measures, the residual risk was considered stable. These were already risk rated as red and it was not possible to rate them higher than a red rated risk. The strategic risk definitions were regularly reviewed and updated where considered appropriate, to reflect the wider risk environment within the current scheme, the Council was confident the risk ratings shown were correct.

In terms of the Council’s own financial stability, despite the environment becoming more challenging, the authority was in a strong position and its finances were under constant review in order to maintain strong controls.

In respect of a member question, the report in SR2 referenced “ambitious initiatives” and “delivering services differently”, it was explained that this referred to the Council’s Financial Sustainability Programme. There was a well-established quarterly reporting process of the Programme to the Overview and Scrutiny Committee. Regarding the “mitigating actions” referred to in SR2, this considered how to use resources more effectively.

In respect of SR8 (ICT network capacity and resilience) it was anticipated that implementation of the procured cyber security system would go live in May 2023. The impact of that risk would be reconsidered in the new risk register in the upcoming financial year.

With financial pressures facing the Council it was asked whether there were going to be any cuts to services provided. It was stated that the Council had not had to make any redundancies in recent years. Some vacant posts had been deleted and that would continue; however, the focus was about how services could be delivered differently, and this included the use of technology and creating capacity. In some instances, the Council was sharing officers with other local authorities and there were sharing opportunities currently being explored around procurement. All staff vacancies were considered by a Panel and delivery of the Council’s frontline services remained important.

In terms of income generation, there were a number of services outlined that brought in revenue for the Council.

Following a member question relating to the impact on the Council regarding the relationship between SR2 (Financial Sustainability) and SR4 (Challenging economic conditions for residents and businesses), the Committee was apprised that demand on Council services from residents was a good indicator on the wider economic pressures being felt; homelessness was given as a good example. In this case the Council was investing in its own properties to house people in need, as this was more cost effective. Overall, understanding trends enabled the Council to put resources where they were needed and to be able to react quickly; this was a complex balance.

RESOLVED that:

      i.        the Audit Committee notes the quarter 3 2022/23 update on risk management provided in the report and associated annexes; and

    ii.        feedback from the Committee to be provided to the Executive for consideration at its meeting on 23 March 2023.