Agenda Item No. 14
The Vale of Glamorgan Council
Audit Committee 29 April 2013
Report of the Corporate Risk Management Group
Risk Management Update
Purpose of the Report
1. To update Audit Committee with the current position of the Corporate Risk Register.
2. To present Audit Committee with the updated Corporate Risk Management Strategy.
THAT the Committee reviews and endorses the amendments to:
1. The Corporate Risk Register; and
2. The Corporate Risk Management Strategy.
Reasons for the Recommendations
1. To recognise amendments to the Corporate Risk Register and ensure that all fundamental risks facing the Council are regularly monitored, addressed, reviewed and updated.
2. To ensure that a current risk management strategy is in place.
3. The Corporate Risk Management Group (CRMG) meet 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.
4. A report of the Corporate Risk Register was last presented to Audit Committee in November 2012, where the need was identified to include a risk regarding the potential negative consequences of not having an adopted Local Development Plan. The last meeting of the CRMG was in early April 2013. Members of the Corporate Management Team were presented with an update on the Corporate Risk Management Register in mid April 2013.
5. An update to the Corporate Risk Management Strategy was also presented to Audit Committee in November 2012. The Committee made a number of suggestions for improvement to the strategy, which have consequently been incorporated.
Relevant Issues and Options
6. Attached at Appendix 1 is the Corporate Risk Register as at 22 April 2013. A summary page has been added to the Register which includes a list of all current risk scores and statuses. Key tables explaining colour coding and direction of travel symbols are also included. Colour coding and direction of travel symbols have been added to all risks in response to suggestions made by Audit Committee in November 2012. A twelfth risk has been added to the Register relating to the newly established Local Development Plan.
7. Attached at Appendix 2 is the updated Corporate Risk Management Strategy. The following amendments have been made in response to comments by Audit Committee:
i) Figure 1 has been updated to include the role of Audit Committee in the Council's risk management process;
ii) Table 4 has been updated to show how the achievement of specific objectives aligned to the risk management process contributes to the Council's corporate priority outcomes as identified in the Corporate Plan 2013 - 2017.
Resource Implications (Financial and Employment)
8. Managing and reducing risks effectively helps prevents unnecessary expenditure, reduces insurance claims and premiums and provides better protection for Council staff and members and better services to clients.
Sustainability and Climate Change Implications
9. Managing the impacts of climate change is a corporate risk which is monitored in accordance with the Corporate Risk Management Strategy.
Legal Implications (to Include Human Rights Implications)
10. None directly at present.
Crime and Disorder Implications
11. None directly at present.
Equal Opportunities Implications (to include Welsh Language issues)
12. None directly at present.
13. 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 Community Leadership.
Policy Framework and Budget
14. This report is a matter for consideration by the Audit Committee.
Consultation (including Ward Member Consultation)
15. Consultation has taken place with nominated risk owners, IDT staff and members of the Corporate Risk Management Group.
Relevant Scrutiny Committee
16. Corporate Resources
Corporate Risk Management Strategy
Alan Jenkins, Head of Accountancy and Resource Management
(Chair of the Corporate Risk Management Group)
Corporate Management Team
Corporate Risk Management Group
Improvement and Development Team
Sian Davies, Managing Director