Agenda item

To receive an update on the September 2022 review of the Corporate Risk Register and the Risk Appetite Statement (copy enclosed).

The Chair thanked the officers and Lead Member for the detailed report. He recognised the detailed work incorporated in the register and noted it may be beneficial to have a future training session on the Risk Register.

The Lead Member for Corporate Strategy, Policy and Equalities, Councillor Julie Matthews introduced the report to provide an update on the Corporate Risk Register Review, September 2022. The report asked Governance and Audit to review the risks facing the council and the risk appetite statement.

The Corporate Risk Register was developed and owned by the Senior Leadership Team (SLT) and Cabinet.  It was reviewed twice every year by Cabinet at Cabinet Briefing.

The Strategic Planning and Performance Officer, Emma Horan confirmed the report was seeking assurance from members that risk management had been managed appropriately. An update of the latest review was also included. The risk appetite statement looked at the level of appetite the authority had in pursuit of its objectives. Officers requested members approval for an amendment to the statement.

Members heard that certain risks within the risk register had been escalated including Risk 01- Safeguarding where officers had applied extra management controls to manage the risks. CET were reviewing the risk on a monthly basis, in particular focusing on controls that are implemented to control the risk. 

It was highlighted that the Corporate Risk Register had of late become very interconnected with a number of risks crossing over.

A review of the changes to the risks had been included within the covering report.

A review of the Risk Appetite Register with Cabinet members to review the register to ensure the correct level of risk was adopted. The Governance and Audit committee were responsible for the process and the methodology of the risk strategy. Due to the changing economic situation it had been proposed to amend the minimalist risk appetite in relation to Workforce: Terms and Conditions to a cautious appetite, to reflect the way we are ‘flexing’ recruitment processes – in a safe way – to alleviate challenges in filling roles. The reason for this change had been to try to resolve the issues faced in recruitment and retention, those processes needed to be more flexible.     

During discussions the following points were made –

·         Risks are highlighted during conversations during the biannual reviews with CET and Cabinet. A number of factors are considered and discussed when reviewing new risks. Risks can also be identified by services raising concerns to senior officers.

·         Inherent risk is the full exposure level of that risk with the residual risk score took into account the mitigated actions that are in place. Any concerns on achieving the actions would be reviewed at the twice yearly meeting. Meeting and conversation with department, officers and Lead Members took place when a new risk is identified.

·         New mitigated actions are monitored by service business plans.

·         The Monitoring Officer confirmed the information contained in item 11 on the agenda was relevant when debating the amendment to the risk appetite and confirmed if members referred to that information that was reasonable.

·         Members noted the close connectivity between a number of the risks. All of which had contributed to the challenges faced by the authority. 

·         Officers noted members suggestion of a picture map or table to identify risk changes or movements and would consider with the team.

·         A report was scheduled for the January Governance and Audit committee meeting on recruitment and retention. Members also heard internal audit was also undertaking a review on recruitment and retention which would be presented to the committee following completion.

·         Regional and National discussions had taken place with representations from Denbighshire in attendance. Those meetings had been to discuss recruitment and retention issues across the different authorities and partners.

·         An Audit Wales report on workforce issues had been published earlier in the year.

·         Risks emerge on the Corporate register when first apparent. The risks listed to be removed were historic and the actions and risks had been carried out and reviewed.

·         Members suggested an impact of negative culture to potentially be added to the risk associated with fraud. Officers confirmed they would take the suggestion away for discussion with the risk owner.

The Chair thanked the officers for the detailed report and answers to members comments and concerns. Members were in agreement for some additional training on the Corporate Risk Register.

RESOLVED, that members note the risks, scores and controls included in the Corporate Risk Register (appendix 1), including the status of each risk against our Risk Appetite Statement (appendix 2). Also the committee considers the risk appetite statement and accepted the verbal update on any changes (appendix 2).

All members were in agreement to endorse the proposal to amend the Corporate Risk Appetite Statement.