Report of: The Interim Group Finance Director

Purpose of the report: To update the Audit and Governance Committee on corporate and service risks as of 31 May 2026.

Recommendation(s): That the Committee resolves to:

1.    Review the Risk Management report and note its contents.

The Group Finance Director had submited a report to update the Audit and Governance Committee on corporate and service risks as of 31 May 2026. 

Roger Martin, the Risk Management and Business Continuity Manager, was present to respond to questions.  

The Risk Management and Business Continuity Manager summarised that the report updates the committee on the Council's corporate and service risks as of 31 May. The Committee was informed of the process used to construct the registers, and how the responsibility for risks is structured. Members understood that the risk registers were approved by the corporate leadership team on 4 June. 

In relation to the corporate risk register, the Risk Management and Business Continuity Manager explained that the Council currently has five red risks and ten amber risks; an increase of one since the previous report. The Committee heard that the new risk related to increased staff involvement in LGR workstreams which could possibly impact the Council's ability to deliver on its existing priorities. A summary of other changes within the register was also delivered.  

In relation to the service risk register, the Risk Management and Business Continuity Manager explained that two new red risks had been added in relation to broader than required access permissions within the Council's document management systems, and lawful and consistent implementation of the emerging statutory guidance around transgender inclusion and single sex spaces. 

The Risk Management and Business Continuity Manager concluded by reminding the Committee that previous feedback from Councillor Fry had been considered, as detailed in appendix 5.  

The Chair invited questions from the Committee. 

Councillor Fry thanked the Risk Management and Business Continuity Manager and queried whether a reference within the report to ‘failure to comply with governance requirements’ related to failures to comply with the constitution. Councillor Fry also asked whether some of the service risks were generic and related to more than one service area. 

In response to the second question, the Risk Management and Business Continuity Manager recognised the presence of some specific service-wide pressures related to staffing and finance, however commented that these were also considered within the corporate risk register and the finance risk register.  

In response to Councillor Fry’s first question, the Director of Law, Governance, and Strategy explained that the risk in question related to failures to follow process, such as within the urgent key decisions process. The Committee also heard of a number of judicial reviews in connection with governance and decision taking difficulties. The Director of Law, Governance, and Strategy emphasised the importance of monitoring to ensure that risks of legal challenges against the Council are reduced.  It was also noted that judicial reviews have taken place in relation to planning as well as homelessness, for example. 

The Risk Management and Business Continuity Manager reminded Councillor Fry that risk number 168 specifically focuses on the increase in the number of judicial reviews relating to planning and regulatory decisions.  

In response to Councillor Fry’s queries, the Director of Law, Governance, and Strategy also explained that service risks for law and governance are outlined in the register due to the costs incurred during the provision of legal services when there is an inability to recruit and retain permanent staff. The Committee heard that locum rates for local government lawyers are exceptionally high, which generates a significant risk in being able to secure resource within budget. The Committee were reminded that the legal service underpins many of the Council departments, including housing, thus making it a more significant risk.  

Councillor Thorniley queried whether the various risks of Local Government Reorganisation between different services are individually evaluated, and if so, how.   

The Risk Management and Business Continuity Manager confirmed that this is assessed and committed to providing additional information and examples in writing.  

The Group Finance Director also explained that once a decision is received from the Government, reflections on the risks will become more apparent.  

The Chair thanked the Risk Management and Business Continuity Manager. 

The Committee reviewed and noted the report. 

The Risk Management and Business Continuity Manager left the meeting and did not return.