Agenda item

To consider a report by the Head of Business, Improvement and Modernisation (copy enclosed) which sought consideration on the formally updated version of the Corporate Risk Register.

A report by the Head of Business, Planning and Performance (HBPP), which sought consideration of the formally updated version of the Corporate Risk Register (CRR) agreed at Cabinet Briefing, had been circulated previously.

With the aid of a PowerPoint presentation, which detailed the VERTO system available to all Members on the Council’s Intranet Web Site, the Corporate Improvement Officer (CIO) provided a detailed summary of the report.

The CRR enabled the Council to manage the likelihood and impact of risks that it faced by evaluating the effect of any current mitigating actions, and recording deadlines and responsibilities for further action which should enable tighter control.  It had been developed and owned by CET and the revision process had been detailed in the report.

The Register was formally reviewed twice yearly by Cabinet and CET.  Any significant new or escalating risks identified would be presented to CET, via Corporate Improvement Team.  CET would then decide as to whether the risk should be included in the CRR.

Following each formal review of the Register the revised document would be presented to the Corporate Governance Committee.  Actions identified to address corporate risks would be included in Service Plans, where appropriate, which would enable the Performance Scrutiny Committee to monitor progress.  Any performance issues relating to the delivery of these activities should be highlighted as part of the Service Performance Challenge process.

The Council’s Internal Audit (IA) function provided independent assurance on the effectiveness of the internal control procedures and mechanisms in place to mitigate risks across the Council.  It also offered independent challenge to ensure the principles and requirements of managing risk were consistently adopted throughout the Council. IA Services also utilised information from the service and CRR to inform its forward work programme.

The CIO referred to Appendix 1 to the report which incorporated the main changes made to the Corporate Risk Register, along with any points of note.  A summary of the following Actions was provided by the CIO:-

-                  Revision to DCC007: ‘The risk that critical or confidential information is lost or disclosed’.

-                  New risk, DCC027: ‘The risk that the decisions that are necessary to enable the delivery of a balanced budget are not taken or implemented quickly enough’.

-                  New risk, DCC029: ‘Risk of successful challenge that we are illegally depriving people of their liberty’.

The CIO responded to questions from Members, and the following issues were highlighted:-

-                  DCC013: ‘The risk of significant financial and reputational liabilities resulting from management of some Arm's Length organisations’. Councillor G.M. Kensler questioned the expected delivery date of March 2015 in view of the proposed budget cuts.  The CIO confirmed that the risk identified related to the management of the organisations.    

-                  DCC018: ‘The risk that programme and project benefits are not fully realised’. The COI confirmed the action ensured that the projects implemented realised the benefits on which the Business Case had originally been agreed.

-     DCC021: ‘The risk that effective partnerships and interfaces between BCU Health Board and Denbighshire County Council (DCC) do not develop, leading to significant misalignment between the strategic and operational direction of BCUHB and DCC’.  The CIO confirmed that the risk would be reviewed in March of April, 2015.

-                  DCC028: ‘The risk that the services that we scale back have a greater negative impact than we anticipated’. It was explained that the mitigating risks would be    submitted to the Committee following a six month period.  In response to concerns expressed that the three identified red residual risks could be subject to regular reporting, the HIA provided details of the remit of Internal Audit in monitoring high residual risks.  

The HLHDS provided details pertaining to the role and remit of the Corporate Governance Committee which was to ensure that there was a proper Risk Management process and procedure in place, and that the management of individual risks would be a performance scrutiny function.  He confirmed that issues could be recommended by the Corporate Governance Committee for scrutinisation.

RESOLVED – that Corporate Governance Committee:-

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

(b)            requests that Members comments during the debate be noted accordingly.

     (GW & NK to Action)

The Chair informed the Committee that the remaining agenda items would be taken in the following order:- 9, 10, 11, 12, 7, 8, 13, 14, 15.