Agenda item - Corporate Risk Register

Agenda item

Corporate Risk Register

Minutes:

The Executive Director of Finance and Corporate Resources presented the draft Corporate Risk Register. 

 

A number of key issues were brought to Members’ attention during the presentation of this report:

 

·                The register was designed to address corporate and strategic risks to the Council.

·                The content of the register had been reviewed by the Corporate Management Team (CMT) and fourth tier managers.

·                Some risks, included in the register at the start of the year, would be removed during the course of the year as the risks reduced or were removed.

·                Operational risks were more likely to be listed in service level risk registers.  Action plans focusing on key risks might also be produced for particular projects as and when required.

·                A scoring matrix was used to assess the level of risk in particular contexts.

·                The Impact Scoring Criteria was used to classify risks from negligible, where the risk was low, to catastrophic, where the risks entailed reputational damage and expenditure in excess of £1 million.

·                Inherent risks were those where there was a significant chance that if the Council did not take action it was likely that the risk would occur.  Only 2 cases had been classified as inherent risks.

·                There was action that could be taken to mitigate risks arising when poor decisions had previously been made.  However, the Council had less flexibility where there was a need to comply with particular legislative requirements.

·                At the national level corporate fraud, procurement fraud and HR fraud were becoming topic issues and it was possible that these would need to be added to the Corporate Risk Register in the long-term.

 

Members discussed the following areas after the presentation had been delivered:

 

·                The risks associated with the Council entering into a combined authority and the extent to which this had been addressed within the Corporate Risk Register.  

·                Officers explained that there were sections dedicated to joint working, though this could be expanded to encompass the risks involved in taking part in a combined authority.

·                The extent to which Members had been provided with information about combined authorities and the financial risks involved.

·                The risks associated with the potential failure of the Council’s Development Plan. 

·                Officers explained that it was likely the Development Plan would already be listed on the Planning Risk Register, though other local authorities had recorded this in their Corporate Risk Register and Bromsgrove District Council could adopt a similar approach.

·                The level of monitoring undertaken in relation to the risk register.  The Committee was advised that Officers monitored developments in relation to the register on a monthly basis.

·                The risks associated with capital expenditure on the Dolphin Centre and the extent to which it would be more suitable to list these risks on the Leisure Services risks register.

·                The impact of LOBO loans on local government finances.  Officers confirmed that Bromsgrove District Council had not received any LOBO loans.

 

At the end of the Committee’s discussions Members agreed that a number of items should be added to the Corporate Risk Register including:

 

·                Corporate fraud.

·                The Statement of Accounts.

·                The designation status of Planning Services.

·                The Planning Development Plan.

 

The Committee discussed the value of appointing a Member to act as Risk Champion.  The Risk Champion could meet with relevant Officers and assess risks from an elected Members’ perspective.  The Risk Champion’s findings could then be reported back for the Committee’s consideration. 

 

Nominations were received on behalf of Councillors M. Glass and M. Thompson to serve as the Committee’s Risk Champion.

 

RESOLVED that

 

(a)       Councillor M. Thompson be appointed to serve as the Committee’s Risk Champion for the remainder of the municipal years; and

(b)       Subject to the changes detailed in the preamble above, the proposed Corporate Risk Register 2015/16 be approved.

 

Supporting documents: