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Agenda Item No. 10

 

The Vale of Glamorgan Council

 

Audit Committee: 28 April 2014

 

Report of the Corporate Risk Management Group

 

Risk Management - Corporate Risk Register Review

 

Purpose of the Report

1.         To update Audit Committee with the current position of the Corporate Risk Register.

Recommendation

1.         That Audit Committee note the current position in relation to corporate risk.

Reason for the Recommendation

1.         To recognise amendments to the Corporate Risk Register and the current position of risks and to ensure that all fundamental risks facing the Council are regularly monitored, addressed, reviewed and updated.

Background

2.         The Corporate Risk Management Group (CRMG) meet five times a year 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.         A checklist of the following twelve 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

          Communication

          Reputation

 

4.         The meeting of the CRMG in December 2013 decided that the risks associated with the Central South Consortium Joint Education Service in terms of the delivery of statutory school improvement functions should be added to the Corporate Risk Register.

5.         An Internal Audit review into risk management was completed during March 2014 and was discussed at the meeting of the CRMG on 7 April 2014.

6.         The CRMG addressed the recommendations included in the Internal Audit report at the meeting of the 7 April 2014 and proposed the deletion of the Project Management risk.

7.         A report detailing the current risk register and proposing the inclusion of the Joint Education Service as a risk and the deletion of Project Management was endorsed by Corporate Management Team on 16 April 2014.

8.         CMT also recommended that the Head of Human Resources be consulted as to whether the Job Evaluation risk still merited a position on the register. They also asked the Head of Human Resources to ensure that the Workforce Needs risk adequately reflected issues around the recruitment of specific skills and succession planning, particularly in light of the report of the Williams Commission. The Head of Human Resources is currently undertaking work to implement the recommendations of CMT.

9.         CMT increased the score of the School Investment Strategy risk from a 6 (medium) to a 9 (medium/high) in light of funding complexities.

10.      CMT also recommended that a risk in relation to Corporate Safeguarding be added to the register. A risk template is currently being drafted by the Director of Social Services.

Relevant Issues and Options

11.      There are currently 12 risks included in the Corporate Risk Register. These 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

Business Continuity, Workforce Planning, Equalities, Financial Management

Head of Human Resources

(Reuben Bergman)

6 (Medium)

Failure to deliver the School Investment Strategy

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

Head of Strategic Planning and Performance

(Paula Ham)

9 (Medium / High)

(Risk score increased at CMT from 6)

Failure to meet Welsh Housing Quality Standards (WHQS)

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

Director of Visible Services and Housing

(Miles Punter)

6 (Medium)

Failure to meet the national waste agenda and targets.

 

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

Director of Visible Services and Housing

(Miles Punter)

6 (Medium)

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

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

Head of Human Resources

(Reuben Bergman)

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 Financial Services

(Clive Teague)

9 (Medium / High)

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

 

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

Chairperson - Information Security and Governance Board

(Dave Vining)

9 (Medium / High)

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

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

Head of Performance and Development

(Huw Isaac)

6 (Medium)

Failing to manage the collaboration agenda effectively

 

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

Head of Performance and Development

(Huw Isaac)

6 (Medium)

Welfare Reform

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

Head of Financial Services

(Clive Teague)

9 (Medium / High)

Local Development Plan

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

Operational Manager, Development Services

(Emma Reed)

9 (Medium / High)

Failure to deliver statutory School Improvement Functions

Business Continuity, Collaboration, Sustainability (including Social Inclusion), Workforce Planning, Sickness Absence, Information Management (including E-Government), Project Management, Financial Management

Head of School Improvement and Inclusion

(Lynette Jones)

6 (Medium)

 

 

12.      The full corporate risk register, containing a detailed risk template for each risk, is attached at Appendix A.

13.      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.

14.      An Internal Audit review into risk management was completed during March 2014. The 12 recommendations made are outlined below, along with proposals made by the Corporate Risk Management Group to ensure compliance.

Recommendation

Criticality

Management Comments

CRMG comments

1. A timetable should be created which covers all of the Corporate Risks within a 12 month cycle.

Merits Attention

(AJ)

The number of meetings scheduled for 2014/15 has been increased to accommodate this.

The number of CRMG meetings has been increased for 2014/15 to 5 meetings to ensure there is sufficient time to address all risks in the register within 12 months.

2. All members should make every effort to attend for the full duration of the meeting or send a deputy instead that can.

Merits Attention

(CC)

A reminder will be issued to this effect.

CRMG members were reminded to attend CRMG meetings or send a deputy in the last meeting invitation sent. The CRMG agreed that attendance was generally good.

3. Consideration should be given where appropriate for the inclusion on the risk register of those areas raised in the Annual Governance Statement as Corporate Risks.

Merits Attention

(AJ)

This has already been considered in developing the existing Corporate Risk Register.

The group agreed that they already take issues raised in the Annual Governance Statement into account.

4. All departments should be represented on a regular basis at the CRMG meetings. A replacement should be nominated if the standing group member cannot attend.

Merits Attention

(CC)

See recommendation 2.

See recommendation 2.

5. The Corporate Management Team should receive six monthly update reports on the progress of all corporate risks.

Merits Attention

(AJ)

The update scheduled for December 2013 was deferred pending the completion of the Audit review.

The current timetable for reports to CMT and Audit Committee has slipped due to reports being put on hold pending completion of the Internal Audit review. Agreed that a report will go to CMT on the 16/04/14 and to Audit Committee on the 28/04/14.

6. CMT should review the strategic approach to Corporate Risk Management with regard to Project Management.

Significant

(AJ/CMT)

This will be included in the April 2014 update to CMT.

The deletion of the Project Management risk was approved by CMT on 16 April 2014 for the following reasons:

Project Management is highlighted as a risk theme in the risk register and is therefore considered through other corporate risk.

CMT regularly consider Project Management across the council.

7. In line with other Corporate Risks, Project Management should be reviewed as a minimum once a year.

Significant

(AJ)

See recommendation 1.

See recommendation 1.

8. An objective analysis of the Project Management risk should be undertaken to decide if the risk score currently applied is correct.

Merits Attention

(CRMG)

This is a part of the existing risk management process.

See recommendation 6.

9. Risk Registers should be updated to reflect the current position of the controls in place.

Merits Attention

(Risk owners)

This was raised at the December meeting of the CRMG.

The CRMG agreed that all risks owners will undertake an update of their risks in light of new service plans.

10. Risks should be reappraised in terms of its controls and countermeasures, especially in relation to revenue projects.

Merits Attention

(CRMG)

This relates to the project management risk. See recommendation 6.

See recommendation 6.

11. Where appropriate risk mitigation measures should also contain information regarding the values in terms of percentages and costs in reducing the risk.

Merits Attention

This is included where appropriate.

The group agreed to ensure figures were included in risks where appropriate to aid with the assessment of the risk level and/or mitigation of the risk.

12. The timescales contained in the risk registers should be updated to reflect their current positions with realistic timescales.

Merits Attention

See recommendation 9.

See recommendation 9.

 

Resource Implications (Financial and Employment)

15.      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

16.      Ten of the thirteen risks identify sustainability as a key theme. Countermeasures and controls to mitigate any sustainability related risks are included in the risk templates and monitored by the Corporate Risk Management Group. Climate Change has been identified as a medium level corporate risk to the council and is being monitored as part of the Corporate Risk Register.

Legal Implications (to Include Human Rights Implications)

17.      Managing and reducing risks effectively helps prevent legal challenge.

Crime and Disorder Implications

18.      None directly at present.

Equal Opportunities Implications (to include Welsh Language issues)

19.      Six of the thirteen risks identify equalities as a key theme. Countermeasures and controls to mitigate any equality related risks are included in the risk templates and monitored by the Corporate Risk Management Group.

Corporate/Service Objectives

20.      Risk Management, as an intrinsic part of corporate governance, is embedded within the principle of community leadership and will be a key competency for the Council to demonstrate. 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

21.      This is a matter for Audit Committee.

Consultation (including Ward Member Consultation)

22.      Consultation has taken place with nominated risk owners, IDT staff and members of the Corporate Risk Management Group.

Relevant Scrutiny Committee

23.      Corporate Resources

Background Papers

Corporate Risk Management Strategy

Corporate Risk Management Internal Audit Report, March 2014

 

Contact Officer

Alan Jenkins, Head of Resource Management (Chair of the Corporate Risk Management Group)

 

Officers Consulted

Improvement and Development Team

Corporate Risk Management Group

Corporate Management Team

 

Responsible Officer:

Sian Davies, Managing Director

 

 

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