Agenda item

The Strategic Director – People presented a report to update Members on the current position regarding Risk Management arrangements and the Strategic Risk Register as at January 2020. The report recommended that Members note the report and Strategic Risk Register as at January 2020 (Appendix 1), and that the Audit Committee recommends to Executive the adoption of the new ‘Risk Management Strategy’ and approach to risk management.

The Strategic Director informed Members that the proposed new format for the Risk Management Strategy would make the document easier to understand. The intro in the document would state that risk appetite should not be too rigid in certain areas, because risk can sometimes offer opportunities. The risk matrix within the Strategy would reflect this by being broader that it was before.

The Chair asked if the Strategy included mention of procurement. The Strategic Director advised that procurement was included within the accompanying Action Plan.

The Strategic Director referred to the Risk Management Group detailed in Page 18 of the Strategy, which would be led by Members and include senior officers such as the Council’s SRO, SIRO, S151 Officer, and representatives from Internal Audit and Health and Safety. The Chair asked if the Group would include representation from Audit Committee, and the Strategic Director advised that it would operate aside from Audit Committee but he would regularly report the work of the Group to Audit Committee. Members agreed this would be a beneficial way of Audit Committee being involved, because it would allow Audit Committee to properly scrutinise and oversee the work of the Group.

The Strategic Director referred to the Risk Framework on Page 21 which mentioned risk management training for Members, and he added that this could mean Audit Committee is given specific training.

The Strategic Director outlined the Action Plan on Page 22 which set out a step-by-step guide:

·         Establish Risk Management Group: representation, draft Terms of

Reference, schedule of meetings

·         Create Risk Management Strategy performance management and administrative framework including new risk registers (operational, strategic, governance, partnerships and projects)

·         Create a Risk Management report template which is designed to capture the work of the Risk Management Group and current identified risks and control measures

·         Establish a roll-out, promotion and communication programme for the new Risk Management Strategy

·         Create a Risk Management Strategy organisational training package/mechanism for elected Members and staff including roles and responsibilities

·         Schedule a comprehensive and fundamental review of all risk related policies, plans and strategies

·         Establish an Information Risk Management Framework

·         Initiate an annual Risk Management Audit

The Strategic Director referred to the example Risk Register Template in Appendix 2 and stated that there was now a ‘Threats/Opportunities’ header in the table, so efforts would have to be made not to confuse an opportunity with the reason for doing something in the first place (which would be covered by the business case).

Councillor Tom Kirkham referred to the Leader of the Council’s new Corporate Vision and asked if the proposed Framework in the Risk Management Strategy would synchronise with the Vision. The Strategic Director explained that with the old Corporate Plan format, the aims of the Plan were delivered through Service Plans, which meant managers were bound to deliver precisely what the Service Plans said in order to deliver the Corporate Plan. With the new Corporate Vision, there will be more flexibility with Strategic Risk, meaning that Strategic Risk will not have to strictly follow the same kinds of aims or directives.

It was moved by Councillor Tom Munro and seconded by Councillor Chris Kane that the recommendations to note the report/Strategic Risk Register and recommend the proposed Risk Management Strategy to the Executive be approved. Members voted unanimously to approve the recommendations.

RESOLVED that:

(1) Audit Committee notes the report and Strategic Risk Register as at January 2020 as set out in Appendix 1;

(2) Audit Committee recommends to the Executive the adoption of the new ‘Risk

Management Strategy’ and approach to risk management.

(Strategic Director – People/Section 151 Officer/Governance Officer)