Agenda item

To consider a report by the Corporate Improvement Officer (copy enclosed) presenting the latest version of the Corporate Risk Register.

10.35 a.m.

[A pre meeting briefing session had been held for committee members on Risk Management to aid with their scrutiny of this item]

The Corporate Improvement Manager (CIM) submitted a report (previously circulated) presenting the latest version of the Corporate Risk Register which detailed the major risks currently facing the Council together with actions to address those risks.  By way of background the report detailed the process for reviewing the Register and the role of the Performance Scrutiny Committee in monitoring progress.  Reference was also made to the role of Internal Audit in providing independent assurance on the mitigation and management of risk.

The CIM and Corporate Improvement Officer (CIO) elaborated upon each of the main changes to the Corporate Risk Register referenced within the report, clarifying issues and responding to members’ questions on specific risks as follows –

·         DCC005 ‘The risk that the time and effort invested in existing large-scale collaboration projects is disproportionate to the benefits realised’ – it was explained this risk had been removed because the projects were almost complete and project management had been strengthened. The two major collaboration projects referred to were the Regional Waste Project and Regional School Effectiveness and Improvement Service.  Both projects would be included within their respective Service Risk Registers

·         DCC006 ‘The risk that the economic environment worsens beyond current expectations, leading to additional demand on services and reduced income’ – Councillor Colin Hughes raised some concern regarding the downgrading of this risk because the subsidy from the Welsh Government for Council Tax Benefit had only been guaranteed for one year with the likelihood that the risk would increase.  Officers confirmed that the financial climate was frequently changing and it remained a major risk which would be continually reviewed   

·         DCC007 ‘The risk that critical or confidential information is lost or disclosed’ – Councillor Gwyneth Kensler queried whether elected members were covered for the purpose of processing personal information in accordance with the Data Protection Act.  It was agreed that the Scrutiny Co-ordinator be asked to clarity the position and report back thereon

·         DCC013 ‘The risk of significant financial and reputational liabilities resulting from management of an Arm’s Length organisation’ – the absence of an allocated Lead Member for this risk was noted and officers confirmed it was an oversight and advised that Councillor Huw Jones, Lead Member for Tourism, Leisure and Youth would likely be assigned to that risk.

·         DCC017 ‘The risk that the impact of welfare reforms is more significant than anticipated’ – Councillor Meirick Davies queried whether DCC017 strictly met the definition of a risk within the Council’s defined criteria.  The CIM agreed that this risk did not fall strictly within the definition but it was a matter of significant importance and the Corporate Executive Team requested its inclusion together with DCC018 ‘The risk that change/modernisation projects are not implemented as intended, hindering benefit realisation.’

The Chair referred to his recent meeting with Mr. Gwilym Bury from the Wales Audit Office and referred to the positive Improvement Assessment Letter which had been issued.  One of the two proposals for improvement highlighted the need for more information to be included on the status and outcomes of the Council’s collaboration projects and concern had been expressed over the lack of methodology for corporate governance of such projects.  Consequently the Chair queried whether this aspect should be considered a risk linked to DCC015 ‘The risk that the council cannot influence the collaboration agenda, and that further collaboration is forced upon us rather than entered into voluntarily’.  The Corporate Director Economic and Community Ambition reported upon the framework and processes to be adopted before entering into collaboration to mitigate governance issues which may also be covered in service plans on an individual basis.  She agreed to raise the issue at CET as to whether it should be reflected as a corporate risk.  Reference was also made to a review of progress with the Compact and encouraging collaboration which would be reported back to members.  The Head of Internal Audit Services advised that the framework had been introduced after the earlier collaboration projects and Internal Audit would be reviewing more recent projects to check whether the guidance was being adhered to.  The CIM added that if governance around collaboration was considered weak it would be an issue to be dealt with as opposed to referenced within the Corporate Risk Register.

RESOLVED that the committee –

(a)       notes the deletions, additions and amendments to the Corporate Risk Register, and

(b)       subject to clarification on the governance issue raised around collaboration, 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.

At this juncture (11.10 a.m.) the committee adjourned for a refreshment break.