Agenda item

To note and comment on the strategic risks.

The Committee noted an update on the Strategic Risk Register.

The Committee was updated on the profile of the key risks currently faced by the council and any new risks which emerged since the risk register was last reported in July 2021.

The risks categorised as red and faced by the council related to children’s social care, GDPR, medium term financial strategy (with the local government finance settlement to be published in the following month), cyber security and the towns fund programme.

Emergency planning, business continuity, commonwealth games aquatic centre, Oracle Fusion (business management system) implementation, and Grant Thornton audit findings recommendations were among the amber risks.

The risk score of a number of issues had changed since the last update to the Committee. The assessment of risk 4 on the register, children’s social care, had reduced to 12 (red), which was due to improvements in staffing levels, a permanent senior leadership team being in place in the operational area of the Children’s Trust. In addition, a recent review by Ofsted of the Council’s fostering service which found all areas to be rated as “Good”, demonstrating a positive direction of travel.

The target date for risk 53, Oracle Fusion (previously referenced as Business Management System), had been moved back due to delays in the project implementation. The assessment of risk 56, Towns Fund Programme, had increased from amber to red, due to delays in the production of business cases and the full establishment of the programme management office (due to key officer absence). Remedial actions were being implemented, including the transfer of a Senior Regeneration Officer to manage the programme; an external recruitment process and additional resources allocated to the production of some of the business cases.

Several new risks had been identified for inclusion as separate risks in the risk register, which had previously been under the umbrella of other risks:-

·      Risk 27b – In year budget monitoring and management which considered the arrangements in place to ensure the Council operated within the resources available and allocated in its budget and that planned savings and efficiencies were being delivered and achieved.

·      Risk 61- Partner/ contractor delivery of services. This risk considered the arrangements in place to ensure effective contract management arrangements were in place, in particular within the Council’s key contracts, to ensure compliance with the contract terms, good quality service delivery and to provide assurance on value for money.

The following was noted in response to comments and questions:

·      A member expressed concerns that the council had too many risks to prioritise. He sought clarification regarding target dates and whether officers had been realistic with deadlines. In response, due to senior officer shortages there had been some delays in achieving some of the deadlines set out in the report. However, the council was optimistic that the new leadership team would review and set forth appropriate completion deadlines within the register.

·      In response to a query regarding the Towns Fund completion date, the Director of Finance confirmed that the end of March 2022 was the final submission date for the business cases. Therefore, there was an assumption that upon the completion of the business cases, the risk would have been managed.

·      In respect of Risk 61, a member highlighted that it was important that the management of contractors was on the risk register.

·      A member sought clarification on the current Grant Thornton review of value for money and governance. There were several lines of enquiry which had a strong focus on improving governance within the council. The final report on the external auditors investigation was due at the end of November 2021. It was noted that the final report and recommendations would be presented to the Committee at a future meeting.

·      The Chair confirmed that the Committee would carry out a deep dive on the management of contractors (Risk 61) and the Towns Fund (Risk 56) at its next meeting.

·      A member sought clarification on Business Continuity Management (BCM) plans only covering in-house council matters and no external contractors. In response, it was confirmed that relationships between business partners was closely aligned with contract management within the risk register. Therefore, BCMs were still an identifiable council risk. 

·      A member sought clarification on the amber rating for equalities. In response, it was confirmed that there were several equality duties which the council was obligated to fulfil. The council had established an equality commission as part of its drive to focus on equality improvements and provide appropriate assurances.

·      The Chair sought clarification on GDPR training for council employees. In response, the Director of Law and Governance and Monitoring Officer confirmed that annual training for all employees was expected. In addition, training for members would be finalised in the next few weeks.

Resolved that detailed reports are submitted to the next meeting in respect of the following strategic risks:-

•       Risk 056- Towns Fund Programme

•       Risk 061- Partnerships and Contractors Service Delivery