REPORT OF THE DEPUTY LEADER

SUMMARY/PURPOSE

1. To keep the Executive aware of the latest developments in the Council’s response to the Risk Management agenda.

2. The report is for noting at present and there are no decisions required to be made at this stage. For this reason the issue had not been included in the Forward Plan.

BACKGROUND

3. Whilst the Council had for many years taken a supportive view of property protection and commissioned risk surveys, a Risk Group was not formed until September 2000. This group has worked on a number of issues and a Risk Audit was undertaken by our insurers in July 2001. A Risk Bid Fund was available from April 2001 for initiatives towards reducing risks. To date thirty four bids have been successful covering a number of different areas.

4. Earlier this year the Council commissioned a Strategic Risk Profile of services and activities. The Directors Group has met on several occasions to analyse the report and has developed an Action Plan for addressing the high profile risks facing the Council. The Action Plan is attached as an Appendix to this report.

5. At the Directors Group meeting on 15 November 2002 the Action Plan content and targets were agreed. It was also agreed that the Directors together with the Member Risk Champion, Councillor Peter Harris, would form a Strategic Risk Group. It was further proposed that an Operational Risk Group should be formed from Heads of Service and key senior officers. Directors and Head of Service are named on the Action Plan as responsible officers for each of the high priority risks together with any financial implications for addressing the risk and a target date for completion.

6. The Strategic Risk Profile identified forty one key risks using a traffic light system of assessment and considering the risk tolerance of the Council with the magnitude and the likelihood of the risk happening. The Action Plan, starting with the red risks, identifies how the Risk Group intends to deal with the issues surrounding these risks. Members may wish to consider the nature and impact of the risks shown on the Appendix.

7. Risk management is now one of the essential considerations on reports to the Executive and, in order that they can carry out their roles effectively, training is to be arranged for members of the Executive, Select Chairs, Opposition Leaders, Directors and Heads of Service in late February/early March 2003.

8. To enable the Council to continue to monitor and review the risks on a regular basis a Risk Register will be compiled on a computer program to demonstrate milestones in reducing risks to an acceptable level. Risk Management is one of the topics which was examined as part of the Comprehensive Performance Assessment.

9. Effective risk management can reduce costs of insurance both within the self funded element and that placed with an insurer. The Insurance & Risk Section, which has some synergy with the other Compliance sections, has recently recruited a new junior member of staff to assist with the increased work load in recognition of the growing importance of the risk management agenda.

STRATEGIC CONTEXT

10. It is vital that good risk management becomes part of the culture of the Council and is not seen as a “bolt on”. Like other governance issues, managing risk is concerned with ensuring that the Council achieves its objectives. It does not mean, either, that the Council should be risk averse, but rather that it must understand the potential dangers (ie risks) which a proposed course of action, or inaction, may present before a decision is taken.

CONSULTATION

11. The Strategic Risk Profile was developed following interviews with thirty six senior officers of the Council, the District Auditor and the Council’s Risk Champion, Councillor Peter Harris. Strategic Directors and the Risk Champion have been instrumental in producing the Action Plan which will take the Council to the next stage of the process.

FINANCIAL/BUDGET IMPLICATIONS

12. There are costs associated with dealing with the high priority risks and these have been identified within the Action Plan.

13. Training will have a cost implication but this needs to be weighed against the financial consequences of any risk becoming an actual (and costly) event.

LEGAL IMPLICATIONS

14. As this report is for noting only there are no specific legal implications except an ensured compliance with legislation, eg corporate manslaughter, health & safety, etc.

RECOMMENDATIONS

15. That the Executive note the contents of the report and the action being taken to address risk management issues.

BACKGROUND PAPERS

16. The Strategic Risk Profile: Marsh UK 2002

Worth the Risk: Audit Commission 2001

Corporate Governance in the Public Sector – The Role of Risk Management: ALARM 2001

Corporate Governance in Local Government – A Keystone to Community Governance: CIPFA/SOLACE 2001

Contact Point : Chris Stocker, Insurance & Risk Manager, Tel: 823624, E-mail: [email protected]

J PULSFORD

Strategic Director

Finance and Information

P HARRIS

Deputy Leader