Agenda item

To consider a report by the Corporate Improvement Manager (copy attached) which details the latest version of Denbighshire’s Corporate Risk Register.

                                                                                                        9.35 a.m.

A copy of a report by the Corporate Improvement Manager had been circulated with the papers for the meeting, which presented the latest version of the Corporate Risk Register for Denbighshire, and enabled the Scrutiny Committee to fulfill its role in ensuring that identified risks were being appropriately addressed by the implementation of effective measures to mitigate risks.

The Corporate Improvement Manager (CIM) introduced the report and outlined the main changes made to the Corporate Risk Register, since the previous presentation to the Committee, which included:-:

·        The removal of DCC003: “The risk that demographic change leads to un-resourced demands on Council services”.

·        The amendment of DCC005 from “The risk that the time and effort invested in collaboration is disproportionate to the benefits realised” to “The risk that the time and effort invested in existing large-scale collaboration projects is disproportionate to the benefits realised”.

·        The removal of DCC008: “The risk that political change impacts on the ability of the political leadership (Leader/Cabinet) to deliver a difficult agenda”.

·        The revision of DCC014: “The risk of a health & safety incident resulting in serious injury or the loss of life”.

·        The creation of the new risk DCC015: “The risk that the Council cannot influence the collaboration agenda and that further collaboration is forced upon on rather than entered into voluntarily”.

·        The creation of the new risk DCC016: “The risk that the impact of welfare reforms is more significant than anticipated by the Council”.

The CIM provided a summary of the structure, changes and reviewing process of the Corporate Risk Register, Appendix 1, which been included in the report.  All service risk registers were reviewed by services prior to each round of Service Performance Challenge meetings.  A risk workshop would be held with CET who formally review each round of Service Performance Challenges.  Any significant new or escalating risks would be brought to the attention of CET, as and when identified, and CET would then consider whether the risk identified should be included in the Corporate Risk Register.

The Corporate Risk Register would be presented to the Scrutiny Committee following each formal review.  Members agreed that an item be included in the Forward Work Programme for February, 2013, following the current round of Service Performance Challenges.          Actions identified to address corporate risks were included in Service Plans, where appropriate, which would enable the Committee to monitor progress.  Any performance issues relating to the delivery of the activities would be highlighted in the Service Performance Challenge process.  The Council’s Internal Audit function provided independent assurance on the effectiveness of the internal control procedures and mechanisms in place to mitigate risks across the Council, and offered independent challenge to ensure the principles and requirements of managing risk were consistently adopted throughout the Council.

An annual review and report on progress of the risk management policy, produced for the Corporate Governance Committee, would identify weak areas which required strengthening to improve the risk management process.

In reply to questions from Councillor M.Ll. Davies, the CIM confirmed that the Corporate Risk Register could be accessed through the Denbighshire Intranet and he provided details regarding the format and categorising process of identified risks under the Risk Register.

The Corporate Director: Economic and Community Ambition (CD:ECA) responded to concerns raised by Councillor A. Roberts regarding the Council’s independence in not being able to influence the collaboration agenda (DCC015).  She explained that this issue had remained as a B2 risk due to actions currently being undertaken to mitigate the impact of the risk.  CET had discussed this matter in detail and it had been agreed that further work would need to be undertaken with regard to the Regional Collaboration Agenda.    

Councillor H. Hilditch-Roberts raised concern in respect of DCC004, the risk that the Council would be unable to develop the staff and management capability to deliver the change agenda, with one factor recognised as a resistance to change, and stated that flagging this as a risk was not sufficient and that this would require action to resolve. The CD:ECA said that the ‘resistance to change’ was not an issue at present, but the potential for this to present difficulty was recognised. It was confirmed that actions were still pending with work being undertaken in respect of the Modernisation Board and its agenda of projects, the delivery of the People Strategy Action Plan and the relevance of workforce and succession planning.

In response to a question from Councillor H. Hilditch-Roberts relating to the recent events following the bad weather conditions, the CD:ECA referred to DCC011 and confirmed that the identification of the Inherent and Residual Risks of E1, in respect of the risk of a severe weather event, had been at the appropriate level of risk and correctly identified.  She confirmed that following completion of the recovery phase a debriefing would be held to assess the response and recovery operations.

RESOLVED – that the Performance Scrutiny Committee:-

(a)    confirms that the Corporate Risk Register provides full coverage of the major risks facing the Council at this time, and that the actions identified in the Corporate Risk Register were appropriate to address the identified risks; and

(b)    agrees to receive a report to review the Corporate Risk Register following the latest round of Service Performance Challenges at its meeting on 21st February 2013.