Agenda item

Members considered an updated version of the Corporate Risk Register.  At the end of Quarter 2 there were 14 risks identified in the risk register made up of 5 high risks and 9 medium risks.  At the end of this quarter Risk 14 (Recruitment of specialist staff) was closed, the risk rating for Risk 6 (Medium Term Budget) increased from 16 to 20 due to budget pressures and Risk 2 (Capacity & Capability) reduced from 12 to 9 following the implementation of the Talent Management Framework and Management in Action course.  All remaining 11 risk ratings remained the same in the last quarter.

At the end of the next quarter there would be a re-evaluation of all risks including the risks and mitigations relating to Brexit and a new risk relating to the city centre security and safety.

Risk 6 (Balancing of the Council’s Medium Term Budget) – It was recognised by the Council that there are still significant challenges in balancing the 2019/20 budget and delivering the medium term plan because of ongoing demand pressures, pay awards and funding challenges.  As a result of these challenges the impact of this risk has been increased to reflect the importance of setting a balanced budget.

Risk 14 – (Recruitment & Retention of Specialist Staff) – this risk had been closed because of the completion of the two mitigating actions assigned to the risk.  It was also recognised that Risk 2 (Capacity & Capability to meet Council’s objectives) was also managing aspects in relation to workforce planning, succession planning and the Council’s Talent Management Framework.

Risk 2 (Capacity and Capability to meet the Council’s Objectives) – During quarter 2, the Council launched two key programmes: Talent Management Framework and the Management in Action Course for all 350 managers.  Both of these would enable the Council to provide its existing and future managers with the capability to deliver its objectives.  As a result of this work it was agreed to reduce the risk score from 12 to 9.

Risk 4 (Brexit) – the Council had been in discussions with the WLGA and was also in the process of undertaking  detailed exercise to identify any gaps across the organisation, which could be directly or indirectly affected by Brexit over the next 5 years. The outcome(s) of this work would enable the Council to reassess the risk and continue to put in place the necessary mitigation actions, which would be reported at the quarter 3 update.

Discussions included the following:-

Risk 4 (Brexit) - The Audit Committee discussed the activity undertaken by the Council’s Corporate Management Team in managing this risk.  The Committee would like to inform Cabinet Members that the risk had been identified but it was not known the totality of its impact in relation to the different Brexit scenarios and that senior management should be aware of that at the end of quarter two. 

Risk 7 (Increased pressure on Demand Led Services) – The Committee noted that the management updates on the progress against the mitigating actions had not fully demonstrated the partnership / collaborative working that takes place between the Council, Health bodies and third sector organisations.  This was exemplified in by the Older Persons Pathway (Risk 7.06) not demonstrating the work being undertaken between GP surgeries, and other organisations to reduce the demand on Health and Social Care:

·       Risk 13 (Asset Management: Carriageways and Buildings) -   The Committee discussed the rationale for the risk score of 25 and why this risk has stayed at the same score for the last 9 months and whether the mitigating actions identified in the risk register were effective in reducing risk for the Council.  The Committee acknowledged the rationale for the scoring was a reflection on the cost to maintain the highway assets and council buildings and that there is a significant shortfall in the Council’s revenue and capital budgets to meet these demands.  The Committee also challenged why Highways assets and Council buildings were combined into one risk. 

Agreed

Risk 4 (Brexit):

o   There should be more visibility at a higher level bringing together the knowledge and information from individual service areas;

o   There should be more reflection on the Partnership working being undertaken to address the Brexit Risk; and

o   The Brexit risk in the Corporate Risk Register should be re-examined and provide a more comprehensive overview of the mitigating activity being undertaken across the Council to address the risk.

Risk 7: (Increased pressure on Demand Led Services)

That Risk Owners and Action Owners consider the collaborative working being undertaken between the Council and its partners to help reduce the risk on the Council in delivering services. 

Risk 13: (Asset Management: Carriageways and Buildings)

:

o   That Cabinet should take action to raise these concerns with the Welsh Government over the funding levels to maintain Council assets;

o   Senior Management re-evaluate this risk and determine whether the risk effectively covers both risk areas relating to highways / building assets and if mitigating actions are sufficient to address the risk;

o   That if the risk cannot be mitigated that the annual governance statement and accounts reflect this risk on the Council.