Agenda item

REPORT OF THE SERVICE DIRECTOR – RESOURCES

A year end report on the Councils' Risk Management Governance for 22-23.

RESOLVED:

(1)   That Finance, Audit and Risk Committee noted and provided comments to Cabinet on the Annual Risk Management update, for referral on to Full Council.

(2)   That Finance, Audit and Risk Committee provided comments to Cabinet on the review of the Risk Management Framework.

(3)   That Finance, Audit and Risk Committee commented on the type of Risk Management Training they would like to see going forward.

RECOMMENDED TO CABINET:

(1)   That Cabinet note the comments provided by FAR on the Annual Risk Management update, for referral on to Full Council.

(2)   That Cabinet note the comments provided by FAR Finance, on the review of the Risk Management Framework.

REASONS FOR REFERRAL:

(1)   The responsibility for ensuring the management of risks is that of Cabinet.

(2)   This Committee has responsibility to monitor the effective development and operation of Risk Management.

Audio recording – 1 hour 40 minutes 19 seconds

The Service Director – Resources presented the report entitled ‘Year End Report on Risk Management Governance’ and highlighted:

·       Paragraph 7.1 of the report outlined the background to the how the risks impacting on the delivery of the Council Plan were reported and the change to the current Council Delivery Plan as reviewed by the Overview and Scrutiny Committee, and for this Committee to review how risk is monitored.

·       Paragraph 7.3 explained the role of the Council Risk and Performance Management Group (RPMG). The RPMG had regular daytime meetings that Members of FAR and O&S were welcome to attend where they have in-depth discussion around Risk and produced a formal report.

·       The Year End Council Delivery Plan risks are highlighted in the Corporate Risk Matrix shown at paragraph 8.2.5.

·       The items with high impact and high likelihood are the Response to Government Resources and Waste Strategy item, which was still to be published, and Churchgate

·       A General Resourcing risk had been added to the list, currently shown with a rating of 8 on the matrix.

·       Table 1 presented the risk categorisations and changes. It is important that risks have mitigation actions, and risk score changes are a sign that those actions are being implemented.

·       Members can request more details of specific projects and are able to log in to and view projects on Pentana.

·       Paragraph 8.7 discussed the approach of the Council to emerging risks and the Risk Appetite at North Herts and how the Council approach risks based on outcomes.

·       As highlighted in paragraph 8.7.3, and following a suggestion from a risk audit, the Council now identifies and considers risks that are emerging and have a procedure on how to identify and consider these. This included situations such as the war in Ukraine, in the Taiwan-China conflict and inflation. These are going to be considered by the Council’s Senior Management Group, and when required would be added as more defined risks.

·       The report includes detailed explanations on Insurance, Business continuity, Health and Safety and how these input into risk. 

·       Paragraph 13.1 related to target actions of the Council, which are risk training, the risk framework and insurance tenders.

The following Members asked questions

·       Councillor Sean Nolan

·       Independent person John Cannon

In response to questions the Service Director – Resources stated:

·       The Shared Internal Audit Service shared information on issues and awareness of Risk from other Districts in the County. The Shared Anti-Fraud Service also shared information from other Councils and National bodies.

·       It would be worth considering how we can learn from the risks that Central Government face and their learning.

·       Paragraph 10.3 focused on the key dependencies and what the response would be if they were not available and how it would affect business continuity and what resources are available should something happen. 

RESOLVED:

(1)   That Finance, Audit and Risk Committee noted and provided comments to Cabinet on the Annual Risk Management update, for referral on to Full Council.

(2)   That Finance, Audit and Risk Committee provided comments to Cabinet on the review of the Risk Management Framework.

(3)   That Finance, Audit and Risk Committee commented on the type of Risk Management Training they would like to see going forward.

RECOMMENDATIONS TO CABINET:

(1)   That Cabinet note the comments provided by FAR on the Annual Risk Management update and refer this onto Full Council.

(2)   That Cabinet note the comments provided by FAR on the review of the Risk Management Framework.

REASONS FOR RECOMMENDATIONS:

(1)   The responsibility for ensuring the management of risks is that of Cabinet.

(2)   This Committee has responsibility to monitor the effective development and operation of Risk Management.