Agenda item

The Executive Councillor for Corporate and Shared Services, Councillor M A Hassall to present the proposed Risk Management Strategy for approval.

(The proposed Strategy has been considered by the Corporate Governance Committee, the Overview and Scrutiny Panel and the Cabinet at their recent meetings).

With the aid of a report prepared by the Director of Finance and Corporate Resources (a copy of which is appended in the Minute Book), the Executive Councillor for Corporate and Shared Services presented a draft Risk Management Strategy for approval.

By way of introduction and having explained why Risk Management was important, the Executive Councillor for Finance and Resources explained that the draft document sought to address three key questions:

v  How do we improve risk management within the existing culture of the council?

v  What sort of risk culture should we be aspiring to enable us to be more successful?

v  How do we drive change to the existing culture to make risk management more relevant and effective and what does this change involve?

He went on to explain that:

v  The Risk Management Strategy was a critical part of the Council’s Governance arrangements which sought to define the Council’s tolerance to risk and managing outcomes and would sit alongside the Code of Governance and Code of Finance.

v  The draft document was based on the Orange Book: Management of Risk – Principles and Concepts published by Central Government.

v  The Orange Book aligns with the Council’s goals as it encourages a positive risk management culture where the discipline is integral to decision making and integrated into overall management processes.

v   It also recommends a structured and systematic approach to risk management, including identifying assessing and managing risks. It emphasises the importance of clearly defined ownership and accountability all levels within the organisation.

v  A programme of activities to embed the new Strategy with the organisation was planned to commence in line with best practice and will incorporate staff at all levels.

In opening the debate, Councillor P Hodgson-Jones expressed his concern that the draft Strategy did not go far enough in creating a fully comprehensive risk management framework for the Council. He commented specifically with regards to the high number of risks contained within the Risk Framework and the absence of any distinction between those which were strategic and operational, comments which had been previously made at the Corporate Governance Committee. He also expressed his disappointment that there had been no changes to the report through its progression through the Committee cycle to Council and at the absence of any clearly defined role for the Corporate Governance Committee. He concluded his remarks by suggesting that there was further work to be done on the development of a consistent risk management structure and suggested that this should be led by the Corporate Governance Committee going forward.

In response to which, the Executive Councillor for Finance and Resources explained that although he was not the Portfolio Holder, he could not disagree with the points which had been made. With regards to the absence of any distinction between operational and strategic risks within the Risk Register it was explained that this document predated elements of the new Strategy and was being modified as a result.  Although not in a position to make assurances, he was confident that the Chief Executive would make sure that Councillor Hodgson-Jones’ comments were taken on board and reiterated that expertise was welcome from all sides of the Chamber.

In commenting on the appetite to risk which had been taken within the draft Strategy, Councillor S Cawley remarked upon the blanket approach which appeared to have been taken. It was suggested that as part of the ongoing work consideration ought to be given to working out where that appetite ought to sit.

On behalf of Councillor M A Hassall the Executive Councillor for Corporate and Shared Services, Councillor S Wakeford reported that this was not a document to be set in stone and that working to develop and improve risk management would continue to remain a priority for his portfolio. He was confident that when the next iteration was prepared, the comments from around the Chamber would be reflected upon.

Having acknowledged the responsibility of the Council for monitoring risk, Councillor A Jennings queried whether there was any way to make the Risk Register more user friendly for backbench councillors, to ensure they could obtain best value from the document.

Finally, and having noted the apparent agreement to many of the comments which had been made during the meeting from officers and the Administration, Councillor J A Gray sought assurances that actions would be taken to take these forwards. In response to which the Chief Executive explained that it had been agreed at the Corporate Governance Committee that the development of the Risk Register was an evolutionary process and would continue to develop and improve.

Whereupon, it was moved by Councillor B Mickleburgh, duly seconded by Councillor Sanderson and

RESOLVED

that the Risk Management Strategy as attached to the report now submitted at Appendix A be approved.