Agenda item

The Corporate Risk Update Quarter 2 2025/26 set out activities the Council undertook to monitor and mitigate risk at a corporate level.  The Council held a risk register of the most significant risks in relation to the achievement of corporate priorities.  This risk register was reviewed quarterly in accordance with the Risk Management Strategy.

As part of the audit reports in 2021 and 2023 the Council introduced processes to actively embed risk mitigation into normal business and introduced departmental ownership of service risks.  The latest audit of the Risk Management Embedding 2024/25 dated 1st June 2025 produced an audit opinion of ‘Reasonable Assurance’.

Corporate Risks were identified in the table set out in the report.  There had been two movements since the Q1 report as follows:

·         Delivery of the Levelling Up Board (COR0010) which moved from an inherent risk of 12 to 9 and residual risk of 12 to 6. Levelling Up Fund (LUF) projects would be completed in May 2026 ahead of the funding deadline. 

·         Bromsgrove DC Being placed into special measures due to quality of planning application decisions COR0009 had moved from an inherent risk of 9 to 6.  Managers supported maintaining a good turnover of major applications, to provide a stable numerical base and also continued to closely monitor appeal decisions. Planning committee members were provided with performance information via a report at Committee which would be completed on a quarterly basis.

Service Risks were set out in the report with no movements since Q1.

Training on how to use the 4Risk system was being arranged for all Members early the following year which would enable Members to review  the system.

The Chief Executive also advised the Committee and suggested incorporating an additional corporate risk in relation to the arrangements for the Interim Section 151 Officer.  It was also suggested that there should be an internal audit review of the actions to mitigate the risks associated with the interim role to provide additional assurance regarding looking forward in respect of financial governance and reporting matters.

Following the presentation the key considerations were discussed:

• Clarity on the corporate risks associated with non-adherence with the statutory inspection policy.  It was understood this related to Housing Standards. 
• Further information on service departmental risks for comparisons from previous reporting and lessons learnt for the Housing department which had fallen from a service risk of 9 to 7 following mitigation.  
• Suggestions that the 4Risk Management Framework System be reviewed, as some actions required updating. 
• Concerns for the downgrading of corporate risks detailed in the report for Planning, suggesting that there should have been due consideration for the National Planning Policy Framework (NPPF) legislation.  The delivery of LUF was also discussed, with Members suggesting that the downgrading was potentially due to the impending GBSLEP funding payout.  Members urged that strategic governance should be encouraged to ensure a robust and transparent approach.  The Interim Section 151 Officer requested Members opinions and considerations when reviewing old style reporting in comparison to the more recent reporting as a comparison. 
• The quality of planning applications which moved from an inherent risk of 9 to 6 was discussed with Members requesting yearly figures which went to appeal.  In response Officers agreed to review the details and report back to the Board.
• An update was requested on the financial stabilisation plan for the recruitment of a Project Manager (Tech 1) and also reassurances for finance team resilience. The Chief Executive reassured the Committee that steps were in place to address this through a project team led by Claire Felton and the newly appointed Assistant Director Corporate Services and Transformation would also be assisting the Interim Section 151 Officer with future risk reporting in the short term.  The Chief Executive also updated the Committee regarding posts that had been recruited to.
• An update concerning an amber rating for non-compliance with health and safety legislation was requested.  In response Members were informed that a report was in progress for the Committees’ consideration in due course.
• Members requested details of the individual members who sat on the CRMOG meetings which were provided by the Chief Executive.

During the various debates and issues raised for this item the Chief Executive reassured the Committee that The Corporate Risk Register was being reviewed by Assistant Directors to provide further clarity to assist Members in future Audit, Standards and Governance meetings.

RESOLVED that the Committee

1)    Consider the strategic risks detailed in the Corporate Risk Register,

2)    Consider and comment on the changes to risk scores and removal/additional of new risks,

3)    Note the proposed changes to the risk owners and risk leads in Appendix 2,

4)    Agree to the additional corporate risk to the risk register for the arrangements for the role of the interim Section 151 Officer and

5)    Seek Internal Auditor’s assurance in relation to the suggested measures put in place to mitigate risk and to report back findings to the Committee.