Agenda item

Officers presented the Risk Management report. This showed the risk register as at the end of Q3 and so it was noted that there had been some updates as it was a live document.

There had been a training workshop with the Senior Management Team since the last Audit Committee and this led to a number of new risks, particularly within the Place Directorate. Officers emphasised that the increase in risk did not indicate a higher level of riskiness but rather improved consistency in recording risks within the Directorate.

Officers provided an update on the implementation of new risk management software, which was currently being fine-tuned before full deployment. Training sessions were due to be run on it.

In response to questions from the Committee, officers explained the functionality of the new risk management software, which included automated notifications for overdue reviews and improved dashboard reporting. A lot of the risks within the Place Directorate still needed to be scored, but this was because they were newly added to the list. The register was moving to a system of individuals services taking ownership of their risk registers, and Directors taking ownership of holding services accountable.

At the end of the report was a summary of the Corporate Risk Register. These were the red rated risks from the Directorate Risk Register. As at the end of the quarter there were no significant changes. Since the end of the quarter the schools’ places risk had been reduced down to green rated, and Decarbonisation and Decent Homes Improvement has been added.

Members asked if the new software would help to identify departments that were not updating the register. Offices noted that there was a review date for all risks and review dates for actions. The system was currently set up to notify departments daily when something became overdue, and officers were reviewing the frequency of these updates. The system also notified the manager or Director. The new system would also allow exporting of dashboard information. The system would likely be updated by the time of the next Audit Committee.

The Chair asked about the reasonable delays for risks not reviewed. Officers noted that one of these related to an officer who had been off sick for an extended period of time. Two of these were related to where the responsible officer did not have access to the centralised register. This had now been rectified.

Furthermore, the Committee sought clarification on specific risks mentioned in the report, with officers providing insights into Risk 12 (Ability to Deliver a Balanced Budget in the Short and Medium Term) and Risk 13 (Financial Resilience of Contracts). On Risk 12, the date of the review was before officers had information relating to the local government settlement and before setting the budget. Therefore, further consideration of this risk would be given in Q4. On Risk 13, measures being taken to address this included proactive contract management and closer monitoring of contractors' financial health.

Members asked about ‘new and closed risks by Directorate’ and ‘risk review dates by Directorate’. Officers explained that in red was the number of new risks per Directorate, and any closed risks were in green. One risk had been closed in the Finance Directorate. Added risks were as follows:

·         Adults: 1

·         Place: 30

·         Children’s: 1

·         Finance: 5

·         Digital: 0

·         Central Service: 3

Finally, the Committee commended the format of the report and expressed anticipation for the next update with the new risk management software in place. Members appreciated the clarity provided and looked forward to seeing further improvements in risk management processes.

RESOLVED: That the Audit Committee noted the Risk Management Report and progress to improve the risk management arrangements