Agenda item

To consider report FIN/589 of the Head of Corporate Finance.

The Committee considered report FIN/589 of the Head of Corporate Finance which sought the Committee’s support and comments on the draft Risk Management Strategy.  The Committee noted that approval of the Risk Management Strategy was the responsibility of the Cabinet Member for Resources and therefore any comments made by the Committee would be submitted to the Cabinet Member for their consideration prior to its approval and adoption.

In presenting the Strategy, the Head of Corporate Finance informed that Committee that they had received feedback from Zurich that the Council had good risk management and governance in place.  Zurich had offered to provide risk management training for Councillors which would outline the Councillors’ duties in relation to managing risks.  The Committee’s attention was particularly drawn to the four levels of risk, the scoring mechanisms used by the Council and the Audit Committee’s responsibilities relating to risk management which were set out in the draft Strategy.

The Committee then discussed the draft Strategy and considered whether it had any comments it wished to submit to the Cabinet Member for Resources.  In doing so the Committee:

·       Noted that although strategic risks were reviewed by the relevant Cabinet Member on a quarterly basis, operational risks were not reviewed in the same way.  Consequentially, the Committee was of the view that it might be helpful and insightful for operational risks to be reviewed by the relevant Cabinet Member on a quarterly basis.

·       Acknowledged that Appendix 1 to the Strategy, which set out roles and responsibilities relating to risk management, identified that the Corporate Project Assurance Group (CPAG) had responsibility for monitoring and managing strategic and significant risks and ensuring improvement plans were adequate and managed effectively.  The Committee expressed the opinion that, in addition to CPAG, it would be beneficial for that role to be undertaken at a senior Cabinet Member level.

·       Received clarification on the meaning of the “reputation” risk level set out in Appendix 3 to the Strategy.  A preference was expressed that the section be amended so “reputation” not only referred to any publicity’s impact on the Council’s reputation, but also took into account the potential impact such action could have on the public’s trust in the Council.  Although the Committee felt public trust in the Council was imperative, it acknowledged that it would be challenging to measure such a risk.  It was therefore agreed that the view of Zurich be sought on the matter and that, should Zurich deem it appropriate, reference to “reputation” be amended to include the risk to public trust in the Council.  The Head of Corporate Finance assured the Committee that it would be informed of Zurich’s response via email.

Having been moved, seconded, and voted upon, it was agreed that the following comments be submitted to the Cabinet Member for Resources’ consideration when approving the Risk Management Strategy:

·       That operational risks be reviewed by the relevant Cabinet Member on a quarterly basis.

·       That, in addition to the Corporate Projects Assurance Group (CPAG), Cabinet Members’ involvement in monitoring and managing strategic and significant risks and ensuring improvement plans were adequate and managed effectively be increased.

·       That, should Zurich deem it appropriate, reference to “reputation” in the Strategy be widened to include the risk to public trust in the Council.

RESOLVED

1.     The Committee support the draft Risk Management Strategy.

2.     That the comments provided above by the Committee be submitted to the Cabinet Member for Resources for their consideration.