Agenda item

Report of the Director for Finance and Corporate Services.

The Service Manager – Corporate Services presented the Risk Management Report of the Council’s risk activity following the 4 February 2021 update to the Group. The report summarises the risks that have changed over that period including the risks identified by the Covid-19 pandemic.

The Service Manager – Corporate Services asked the Group to note the changes to the code of some risks following the staffing restructure in May 2021, the new codes are:

CED – Chief Executives Department

DEG – Development and Economic Growth

FCS – Finance and Corporate Services

NS – Neighbourhood Services

The Service Manager – Corporate Services continued to advise that there are currently 45 corporate risks and 32 operational risks and explained that the number of risks within the register will fluctuate throughout the year as active risk management is undertaken.

Appendix A within the report, presents the Council’s Risk Register containing corporate, operational and Covid-19 related risks. There are six new risks and five have been removed as a result of recent reviews. Additionally there are five increases and ten reductions to risk ratings. These were detailed at paragraph 4.4, on pages 10 to 12 of the report.

The standard risk register was presented from pages 15 of the report. This contained information about each of the risks identified as well as explanations where changes have been made since the last review if the risk register.

The Service Manager – Corporate Services for the first time, was pleased to draw Councillors attention to Appendix B on page 31 of the report, which contains details relating to the Council’s  first identified opportunity risk, which is something the Risk Management Group have been working towards since September 2020. The Service Manager – Corporate Services explained this opportunity risk is related to the development of the Crematorium at Stragglethorpe. Adding that the Council strives to balance opportunity with risk, which in the case of the Crematorium, this process requires officers to think more carefully about the missed opportunity of not taking a risk.

Members asked a specific question relating to the Crematorium and whether this development should be considered as a major financial risk due to possible disruptions in the supply chain and increases in costs of building materials. The Service Manager - Finance explained that there are contingencies within the project to mitigate some risk and that the development is continuously being monitored.

Members questioned the risks relating to planning and development, and whether there were still staff shortages within the planning department. The Service Manager – Corporate Services advised that the vacant roles had now been filled and that this risk is no longer as likely as it appears in the report.

Members asked whether the report and associated risk registers detailed in the appendices were a complete list or part of a more comprehensive list. They also requested assurances on when and in what period of time is the risk register reviewed and who decides what risks are reported to Governance Scrutiny Group.  The Service Manager – Corporate Services advised  that the Council’s Risk Management Strategy, is reviewed on a 3 yearly cycle and confirmed that Zurich the Council’s external risk advisors completed a health check last year. In respect of the Risk Register reported today the Service Manager – Corporate Services advised that risks are reviewed on a continual basis by lead specialists and Service Managers and by the Risk Management Group every six months. Risk Management is reported to Governance Scrutiny Group on a 6 monthly cycle. The Service Manager – Corporate Services advised the Group that she would come back to them regarding the extent of the risks reported to the Group.

The Chairman asked specific questions relating to the New Homes Bonus (NHB) and what would be replacing it, the impact of decommissioning the power station at Ratcliffe on Soar on the business rate revenue and whether the Council is continuing to support the Leisure Centre operator during the Covid-19 recovery. The Service Manager - Finance advised that in respect of the NHB this is due to end in 2022/23 but the Government have consulted on a possible replacement scheme. Any developments will be adjusted during the budgeting process and will be reported to Council in March 2022. The Ratcliffe on Soar site is an ongoing development and it is not anticipated with the development of the Freeport that the Council will be any worse off with the decommissioning of the power station. With regards to the Leisure Centre Operative, the Service Manager - Finance explained that no further support is anticipated at this stage as things return to a pre-Covid-19 status.

Councillor Beardsall and Councillor Simms insisted that a more detailed Risk Register and process for scrutiny be considered when reporting Risk Management to the Governance Scrutiny Group. The Chairman suggested that officers provide further detail and clarity on some of the issues raised at this meeting.

It was RESOLVED that the Group

a)    Notes the content of the report in relation to existing risks subject to observing a full comprehensive register at Governance Scrutiny Group in February

b)    Note the progress on the risks identified in response to the global Covid-19 pandemic

c)    Note the recommendations provided for risks that have a red alert status