Agenda item

5.1   This item followed on from training on risk arrangements for the committee members, ahead of the formal Committee. This was an important training session for Governance and Audit Committee and provided assurances for Audit Wales.  All those committee members in attendance today also attended the aforementioned training.

5.2   The Transformation and Intelligence Manager introduced the item and thanked committee for attending the training session before the committee took place.

5.3   Newport City Council is responsible for delivering a multitude of different services and activities through its statutory and non-statutory duties. The Council faces many complex and wide-ranging opportunities, challenges, and risks that could prevent it from delivering these services effectively. The Council’s Corporate Plan 2022-27 set 4 Well-being Objectives and to deliver against these, the Council and its services need to take well-managed opportunities and risks when making decisions.

5.4   The draft Risk Management Policy (RMP) provided an overview of the Council’s risk management arrangements and also its risk appetite statement on how the Council managed the opportunities and risks throughout the delivery of this Corporate Plan. The Risk Management Policy was developed in consultation with Cabinet, senior officer group and other risk related services such as Health and Safety, Insurance and Civil Contingencies.

5.5   The Performance and Programme Manager. highlighted that the RMP was developed with Cabinet and the Senior Leader Team and held a workshop in October 2023 to discuss and understand the levels of risk appetite. In developing this policy, the team looked outside the organisation to see best practice, hence referring the UK Government Orange Book for Risk Management. The Performance and Programme Manager referred to page 48 which showed the five levels of risk appetite, within the statement, ranging from “adverse” to “eager”, with a description of each level. The overall risk appetite statement was about setting the culture of the organisation on how we managed risk and how to manage opportunities that presented themselves, and how we delivered services and improved services for communities. Officers and Cabinet would make different levels of decisions, based upon evidence and data to look at how to accept the risk. This new approach was to set a level of understanding for the organisation and enable senior officers to make strategic, tactical, or operational decisions.

5.6   The final version would be presented to executive board, with the Committee’s feedback, and the policy was intended to go to Cabinet in March. Following approval, a programme of engagement with service areas would take place to inform and communicate the new policy and provide training.

Comments of Committee Members:

5.7   Dr Barry considered the policy to be a good document and referred to the Fairness and Equality Impact Statement (FEIA) and asked if this was a new development. The Head of People, Policy and Transformation advised that Newport City Council had used this tool for some time as part of the decision-making process, although not all Local Authorities have them in place. Dr Barry noticed that there was no reference to the Modern Slavery Act and asked if there should be as part of the statement. The Performance and Programme Manager suggested that this was a good point and would look into this. 

5.8   Dr Barry referred to two bullet points at the introduction of the plan. The first outlined the Council’s commitment to risk management, and to providing a framework to continue to embed risk management.  Dr Barry wondered whether this should be three points; outlining the Council’s commitment, then providing a framework and then setting the Council’s appetite. The Performance and Programme Manager said that this was another good point and would take this comment on board.

5.9   The Chair also referred to FEIA and considered that this should be completed for all policy and procedure changes. The Strategic Director for Transformation and Corporate explained that Newport City Council was the only Local Authority area in Wales that had an independent Fairness Commission. This had been in existence since 2012 with representations from Newport as the Local Authority, as well as a range of other organisations working across Newport. The Commission’s website Home | Newport Fairness Com (newportfairnesscommission.com) highlights the parameters of fairness and the Council consider these parameters as part of decision-making and impacts on fairness. The Fairness aspect is not part of statutory requirements around equality, but it is something Newport has embedded in decision making.

Recommendation:

The Governance and Audit Committee considered the report and provided feedback on the draft Risk Management Policy and risk appetite statement, subject to comments by the Governance and Audit Committee.