Agenda item

Agenda item

Risk Update

Report of: The Head of Financial Services

 

Purpose of report: To update the Committee on corporate and service risks as at 31 December 2024.

 

Recommendation(s):

·       That the Committee reviews the risk management report and notes its contents.

Minutes:

Roger Martin, Insurance, Risk Management and Business Continuity Officer, 

and Bill Lewis, Financial Accounting Manager, were present to answer questions.  

 

The Insurance, Risk Management and Business Continuity Officer introduced himself to the Committee, noting he joined the Council in December 2024. The Committee’s attention was directed to page 53containing the first risk update report since July 2024. The report focuses on red risks, the corporate risk register, and the service risk register. It was explained that corporate risks are reviewed periodically by the corporate management team; this is due to be next completed on 3rd February 2025 as means of ensuring that all risks that could threaten the achievement of the 2024/28 strategy are assessed, and to deliver on key statutory duties. Where identified, risks are then included in the corporate risk register. The Committee’s attention was drawn to specific examples including: 

  

·       Risk number 12 relating to increased cost and complexity of waste disposal which has been reduced to amber in response to receipt of £1.8m additional funding, therefore reducing associated challenges.  

·       Risk number 6 titled ‘Health and safety and compliance with legislative requirements’ which has increased from amber to red due to governance issues and the number of urgent key decisions taken in 2024. The Scrutiny Committee recently received a report detailing the actions being taken to mitigate this and it is therefore expect that the risk will be downgraded to amber.  

  

In relation to the service risk register, The Insurance, Risk Management and Business Continuity Officer outlined that periodic reviews are conducted by heads of service and managers. The Committee heard that the risk management group has oversight and is working to approve a programme of review for 2025 with an initial focus on housing and property. The Committee’s attention was drawn to some specific examples: 

  

·       Risk 17-LG focused on income targets not being met resulting in an increase from amber to red. Mitigations are in place including seeking and maintaining clients, obtaining feedback from service users, and keeping fees and charges under review.  

·       Risk 6-LG focused on the resilience of the Law and Governances service area for which scores are moving from green to red due to issues with recruitment and retention of staff and concerns around capacity to deliver services. The Committee were assured that focused recruitment is underway to mitigate this.  

  

Councillor Muddiman, in reference to risks CRR7 and page 56, queried why these risks remain red and how long they have been classified as such. The Insurance, Risk Management and Business Continuity Officer committed to checking and reporting back. Councillor Muddiman then asked what is being done to downgrade these to amber, to which the Committee learned that the risk register does not describe any new mitigations since the last report in 2024, but that comments can be made after these risks have been refreshed by the Senior Leadership Team in two weeks.  

 

Councillor Railton queried whether new risks relating to devolution would be considered to which The Insurance, Risk Management and Business Continuity Officer cautioned against prejudging the specific outcome of discussions amongst the Senior Leadership Team but noted it would be likely. The Head of Financial Services concurred 

  

Councillor Smith focused on risks associated withthe climate change emergency and asked whether the conflicting national policies which have impacted targets being met will be assessed and tackled. The question was directed to Councillor Railton as the relevant Cabinet Member who noted that the Council are unable to control conflicts in national policy.  

  

Noting the issues with recruitment and retention of lawyers, Councillor Smith asked whether trainee lawyers and auditors are being considered. The Head of Financial Services explained that with respect to auditors, the Council outsources the service to BDO due to difficulty in recruiting auditors. Councillor Ottino further queried how the shortage of lawyers was not predicted, to which the Legal Services Manager explained that difficulty arises when the impact of new projects,by other departments,on the (small) legal team is not taken into account appropriately. The team also has difficulty recruiting lawyers as the market is very competitive and the Council finds that it must rely on locums who command high hourly rates; they currently employ six. In support of this, the Insurance, Risk Management and Business Continuity Officer drew the Committee’s attention to risk CRR-003 titled ‘workforce sustainability’which demonstrated that the issue of recruitment and retention is a wider focus and not only relevant to the Law and Governance Directorate.  

  

Councillor Smith concurred that the risk applies to all local authorities and noted concerns it couldbe worsened the government’s recent devolution announcement alongside other factors. She sympathised with local authority staff and commented on the need for more clarity from central government. The Chair noted these comments.  

  

Councillor Ottino then queried whether trade union discussions and pay rates need reassessment in response to the issues discussed. The Legal Services Manager informed the Committee that work is underway to assess the difficulties that various teams experience with recruitment including a pay and grading review which is yet to be concluded. She could not comment further on this as she is not involved in the work – it is being led by the Head of People. 

 

The Committee reviewed the risk management report and noted the contents.  

  

The Committee then agreed to take item 8 before item 7.  

 

Supporting documents: