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Agenda Item No

 

The Vale of Glamorgan Council

 

Audit Committee: 19th November 2012

 

Report of the Corporate Risk Management Group

 

Risk Management Strategy and Corporate Risk Register Review

 

Purpose of the Report

1.             To submit the revised Risk Management Strategy for approval and to update Audit Committee on the current Corporate Risk Register.

Recommendations

1.             That Audit Committee approves the revised Risk Management Strategy.

2.             That the position regarding the current Corporate Risk Register be noted.

Reasons for the Recommendations

1.             To facilitate the management of risk across the Council.

2.             To ensure that all fundamental risks facing the Council are regularly monitored, addressed, reviewed and updated.

Background

2.             The Corporate Risk Management Group (CRMG) of officers meets on a quarterly basis to consider the position of each risk detailed on the Corporate Risk Register. The Group considers any changes in either the internal or external environment, including the introduction of mitigating controls which may cause each risk to be re-evaluated.

3.             The process by which the Group assesses and controls each risk is set out in the Council’s Risk Management Strategy. This includes a checklist of the following ten risk ‘themes’ is attached to each individual corporate risk in order to best assess the nature of the risk and its potential effect(s):

·         Business Continuity

·         Collaboration

·         Sustainability (including Social Inclusion)

·         Health & Safety

·         Workforce Planning

·         Sickness Absence

·         Equalities

·         Information Management (including E-Government)

·         Project Management

·         Financial Management.

Relevant Issues and Options

4.             A copy of the latest Risk Management Strategy is attached at Appendix A. This incorporates some minor changes to reflect the new senior management structure and the process for service planning although the seven principles set out for the management of risk remain unchanged as follows:

·         Identifying Risk

·         Analysing Risk

·         Profiling Risk

·         Prioritising Action

·         Determining Action

·         Controlling Risk

·         Monitoring and Reporting Progress.

5.             The last meeting of the CRMG was in September 2012, where it was agreed that the implications of Welfare Reform should be included as a burgeoning corporate risk as this posed a significant threat to the Council both in terms of additional financial burdens and the increase in demand for services e.g. homelessness, social care.

6.             CRMG last reported to Corporate Management Team in early October 2012 on the twelve fundamental risks facing the Council (including the new Welfare Reform risk), which formed the Corporate Risk Register.

7.             As part of the risk management process, the CRMG have since reassessed the position of the risks, and considered sickness absence to no longer pose a significant risk to the Council (although it will continue to be monitored through reports to Scrutiny Committee and Cabinet).  The remaining eleven risks are outlined below together with their related corporate risk ‘themes’, allocated ‘owner’ and risk score:

Risk Title

Risk Theme

Risk Owner

Risk Score

Financial implications of job evaluation and equal pay conditions and their impact on workforce planning.

Workforce Planning, Business Continuity, Equalities, Financial Management

Head of Human Resources

6

(Medium)

 

 

 

Failure to deliver the School Investment Strategy

 

Business Continuity, Collaboration, Project Management, Sustainability (including Social Inclusion), Health and Safety, Financial Management

 

Head of Strategic Planning & Performance (Learning & Skills)

 

6

Medium

 

 

 

Failure to meet Welsh Housing Quality Standards and a sustainable solution for the Council

 

Project Management, Sustainability (including Social Inclusion), Financial Management

 

Director of Visible Services & Housing

 

 

 

6 (Medium)

 

 

 

Failure to meet the national waste agenda and targets

 

Financial Management, Collaboration, Project Management, Sustainability (including Social Inclusion)

 

Director of Visible Services & Housing

 

9 (Medium / High)

 

Inability to anticipate and plan for the workforce needs of the future in order to meet changing services requirements

 

 

Workforce Planning, Business Continuity, Collaboration, Equalities

 

Head of Human Resources

 

6 (Medium)

 

Ability to maintain services to an acceptable standard in light of reduced funding levels

 

Business Continuity, Collaboration, Sustainability (including Social Inclusion), Workforce Planning, Equalities, Project Management, Financial Management

 

Head of Accountancy & Resource Management

 

12 (High)

 

The failure to implement adequate information security management systems across the Council

 

Business Continuity, Collaboration, Information Management (including E-Government), Project Management

 

Head of Legal Services

 

9 (Medium / High)

 

Failure to deliver projects on time, within budget and in accordance of an agreed specification

 

Sustainability (including Social Inclusion), Project Management, Financial Management

 

Operational Manager – Property

 

6 (Medium)

 

Failure to adapt to the impact of climate change and failure to mitigate against climate change in the Vale of Glamorgan

 

Sustainability (including Social Inclusion), Health and Safety, Workforce Planning, Financial Management

 

Head of Performance & Development

 

6 (Medium)

 

Failure to manage the collaboration agenda effectively

 

Collaboration, Sustainability, Equalities, Project Management, Financial Management

 

Head of Performance & Development

 

6

(Medium)

 

Impact of Welfare Reform Measures

 

Sustainability (including Social Inclusion), Workforce Planning, Equalities, Information Management (including E-Government),  Financial Management

 

Head of Financial Services

 

12

(High)

 

 

 

8.             Detailed risk templates for each of the above are attached at Appendix B.

9.             The process of identifying corporate risks from the service planning process is well-established throughout the Council.  This also helps inform the Council’s Improvement Plan and the process of Annual Risk Assessments forms part of the overall Risk Management Strategy adopted by the Council. The CRMG will continue to assess the controls and implementation of necessary countermeasures to mitigate these risks throughout the year.

Resource Implications (Financial and Employment)

10.        Managing and reducing risks effectively helps prevents unnecessary expenditure, reduces insurance claims and premiums and provides better protection for Council staff and members.

Sustainability and Climate Change Implications

11.        Sustainability constitutes one of the ten risk themes associated with the risk management process and is present in 8 of the 11 corporate risks. 

Legal Implications (to Include Human Rights Implications)

12.        None directly at present.

Crime and Disorder Implications

13.        None directly at present.

Equal Opportunities Implications (to include Welsh Language issues)

14.        None directly at present.

Corporate/Service Objectives

15.        Risk Management, as an intrinsic part of corporate governance, is embodied within the principle of community leadership and will be a key competency for the Council to demonstrate as part of the Wales Programme for Improvement. Effective risk management assists the Council to manage its assets more efficiently and thereby promotes the achievement of the Council’s aims in respect of Corporate Resources.

Policy Framework and Budget

16.        This report is a matter for consideration by the Audit Committee.

Consultation (including Ward Member Consultation)

17.        Consultation has taken place with nominated risk owners, Improvement & Development Team staff and members of the Corporate Risk Management Group.

Relevant Scrutiny Committee

18.        Corporate Resources

Background Papers

Corporate Risk Management Strategy

Contact Officer

Alan Jenkins - Head of Accountancy and Resource Management

Officers Consulted

Corporate Management Team

Head of Performance and Development

Corporate Risk Management Group

Improvement and Development Team

Responsible Officer:

Sian Davies - Managing Director

 

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