Agenda item

Information Report of the Assistant Chief Executive.

The Committee received an information report of the Assistant Chief Executive, as part of its support role of reviewing internal policies and arrangements.  The report set out the progress made in risk management, whilst ensuring that the Council’s Risk Management Framework continued to align with best practice, including the production of an annual Risk Appetite Statement on behalf of the Council in line with best practice in Corporate Governance, and ensuring that risk information and reporting processes were streamlined and effective.

An additional appendix 4 was circulated separately to provide a sample of a Directorate Statement of Risk Appetite to be considered in the context of the overall report.

An officer provided some background to the report in that the Council’s updated Risk Strategy provided for the merging of the former Strategic Risk and Corporate Operational Risk Registers into a single corporate Risk Register.  In order to enhance the work of the GARMC and Cabinet around risk management, the following suggestions were made by the officer:

·                     introduction of workshops for Cabinet with a view to ensuring greater engagement and awareness;

·                     revisiting and refreshing the corporate governance framework of the Council – examining existing arrangements, profile, standing within the organisation which would help the Council to take risks in a managed way;

·                     promoting the commercialisation agenda at the Council as a means of improving officers’ risk taking skills.

It was important that risk management was embedded within the organisation, particularly as the organisation was evolving due to the changing economic climate and changes in its structure and operational role, for example an increase in its commissioning role in areas that were formerly NHS driven.  It was also essential that risk management was particularly embedded at service level and in the financial planning process.  Moreover, whilst the Council was risk averse in the delivery of front line services, the back office functions were exposed to greater risks.

In response to questions from Members, it was noted that:

·                     the Council had an overall informed cautious appetite for taking significant risks but it was important to note that risk appetite was a complex and composite attitude often dependant on where Directorates where in their business and service cycles, on the personal subjective judgement core to strategic decision-making and also on thepersonality and the leadership-style of senior managers involved;

·                     appetite scoring was qualitative and dependant on the subjective judgement of the risk.

The Assistant Chief Executive explained aspects of the Council’s Corporate Risk Register, including the impact of various threat risks, aspects of which had been scored in the context of the changes that the Council was facing such as the proposed consultation with staff on their terms and conditions and future industrial relations.  The scoring had been set in the context of the risks that the Council would tolerate.  Risks which continued to be high profile were driving the Corporate Strategy Board (CSB) agenda.  Moreover, discussions with the relevant Directorate were carried out on a continuous basis by the Interim Risk Manager, particularly in relation to the spending pressures, and ongoing strategic risks were monitored.  In relation to Corporate Governance, there were checks and balances on the different stakeholders within the Council. Discussions were also taking place on how Corporate Governance within the different Directorates could be enhanced and made more robust.  A mix of resources and organisational presence were essential ingredients to promoting good corporate governance.

A Councillor commented that the role of corporate governance was to provide a check and balance on the organisation whilst not hindering its operation.

The Chairman referred to the discussion around governance and invited Members to send him comments and suggestions on how best the Committee could engage with the rest of the Council, particularly Cabinet, and the report of the FRC would assist in this regard.

RESOVED:  That

(1)               the report be noted;

(2)               the report of the FRC titled ‘Boards and Risk – A summary of discussions with companies, investors and  advisers’ be circulated to all Members of the Committee;

(3)               the Corporate Risk Register be made available to the Chairman.