Agenda item - RISK MANAGEMENT

REPORT OF THE SERVICE DIRECTOR - RESOURCES

To provide the Finance, Audit and Risk Committee with a Risk Management Update.

RECOMMENDED TO CABINET:

(1) That the Office Accommodation (TR51) risk be deleted;

(2) That the new Waste parent risk (RRNEW1) be created, with a score of 9;

(3) That nine Waste sub-risks (RR287, RR424, RR455, TR59, TR59.001, TR59.002, TR59.004, TR59.005 and TR59.006) be deleted;

(4) That the Waste sub-risk for Sale of Recyclable Materials (TR59.007) be amended, to include an increase in the risk score from a 8 to a 9;

(5) That the new Waste sub-risk for Route Optimisation of Collection Rounds (RRNEW2) be created, with a score of 7;

(6) That in order to enable the Finance, Audit and Risk Committee and Cabinet to monitor the effective development and operation of risk management, all future reports and discussions regarding all Corporate risks should include more detail of ongoing work associated so that any the detail of any mitigation can be taken in to account when assessing risk.

REASON FOR DECISIONS: This Committee has responsibility to monitor the effective development and operation of risk management.

Audio recording – Start of item – 52 minutes 1 second

The Service Director – Resources presented the report entitled Risk Management and the associated Appendix A entitled New, Deleted and Changed Corporate Risks.

The Service Director – Resources advised that the changes to the Risk Management Matrix were detailed at Paragraph 8.2 and 8.3.

The proposals were subject to discussion at Risk Management Group and were to be considered by the Committee for recommendation to Cabinet.

Paragraph 8.3 gave details of the proposed deletion of the Office Accommodation risk as the Office Accommodation project was now complete and the Project Board closure had taken place.

There were proposed changes to the Waste risks with the parent risk proposed to change from 8 to 9.

There had been a number of changes to the presentation of risks which now showed a parent risk with an overall score with the important sub risks, which contributed to the overall risk, being flagged.

This had led to the deletion of a number of sub risks and the re-assessment and redrafting of others.

In response to questions the Service Director - Resources confirmed that Members will still have access to information about the parent risk and the sub risks, but that the Risk Matrix only included the score for the parent risk.

Members asked that they be informed at all stages about risks and sub risks as well as details of any re-assessments that had taken place.

In response to questions the Service Director - Resources confirmed that the management of corporate risks was the responsibility of Cabinet and the Senior Management Team and that, if deemed appropriate, additional resources would be allocated to areas of high risk.

There was detailed discussion about the part that mitigation plays in assessing risk and that it would be useful for Members of this Committee to be advised of and understand those mitigations.

The Service Director - Resources advised that the role of the Committee was to monitor the effective operation of risk management and therefore it was appropriate for the Committee to comment on the detail of the risk and request that more detail regarding the work completed and the work to do would be provided when risks were reviewed in future reports.