The Committee was asked to recommend for approval by full Council, a new Risk Management Framework.  The aim was to formalise, embed and continuously improve processes and procedures for the identification, evaluation and control of risks within and across the organisation.

Officers explained that the Framework was developed to support delivery of actions in the Annual Governance Statement in support of compliance with the Local Code of Corporate Governance.

Members noted the agreed definitions of risk and risk management and fully supported the intention to make the Council more risk aware to support decision making by adopting a 5 stage process to risk management.  This involved:

·         Setting the Council’s objectives and risk appetite

·         Identifying risks

·         Risk evaluation

·         Taking action to manage risks

·         Monitoring and reporting

Each stage of the process was detailed in the Framework and Members agreed it was very comprehensive and should ensure consistency and transparency. 

As a way of embedding the consideration of risk a motion was proposed and seconded to add an additional recommendation making it mandatory that a separate section on risk implications was added to the committee report template.

Officers planned to submit the Risk Appetite Statements to the next scheduled meeting of the Committee in November 2023.  This supplemented the Risk Management Framework and was proposed to be updated annually as part of annual budget and business planning.  A report presenting an update on and highlighting aspects of the Corporate Risk Register and associated activity would be considered at the scheduled meeting of the Committee in January 2024.  Thereafter, it was intended that a report on corporate risks and mitigation would be reported twice a year to the Committee. 

In addition, Officers reported that the capital and investment strategy contained further details of financial risk appetite specifically for commercial and regeneration, portfolio and divestment opportunities. 

Members were very supportive of the Framework, particularly welcoming the addition of risk management to the ‘dashboards’ produced by the Project Management Office, for senior management and Members, showing risk statistics and movements.

Members noted the policy, resource and legal implications and agreed that failure to take advantage of opportunities and mitigate business risks was a major risk to the Council which could impact on its ability to deliver strategic objectives.  In addition, the Committee acknowledged that a failure to regularly review and update the Risk Management Framework could have an adverse impact on the Council’s Annual Governance Statement.

The next steps following adoption of the Framework would be a series of briefings for managers, the release of the tool kit and resources, development of the dashboard for reporting and implementation of the reporting schedule to the Committee.

Officers were thanked for their input into creating the Risk Management Framework and looked forward to receiving updates at future meetings and to having an active involvement in risk management.

Resolved that full Council be recommended to:

i)          approve the Risk Management Framework presented at Appendix ‘A’ of the Officer’s report; and

ii)         a section on risk implications be made mandatory on all relevant reports to Committees to ensure that all risks and mitigatory measures are identified