Agenda item

Report of the Director for Finance and Corporate Services

The Service Manager – Corporate Services presented the Risk Management Progress report which provided an update on risk activity since the last risk report was presented on 1 November 2022.

The Group were advised that the Risk Management Group last met on 31 January 2023, in order to review risks on the register and to make recommendations. A risk management audit was also carried out in June/July 2022 by BDO, the Council’s Internal Auditors, and the Risk Management Level of Assurance was given a substantial rating for design and operational effectiveness.

The Group noted that training had been delivered by Zurich to provide Service Managers with an opportunity risk workshop and Zurich had also provided training for members of Governance Scrutiny Group on 1 November 2022.

The Service Manager – Corporate Services advised the Group that there are currently 41 corporate risks and 27 operational risks on the risk register and advised the Group that the number of risks will fluctuate as active risk management is undertaken.

At Appendix A of the report, the Group were presented the Council’s existing Risk Registers containing Corporate, Operational and Opportunity risks. It was noted that there were no new risks and one risk had been removed as a result of the completion of the Bingham Arena. Risks that have decreased or increased were summarised as follows:

Risk Increased

OR_DEG08 Loss of income as a result of the refund of planning application fees under the provisions of the Government’s Planning Performance and Planning Guarantee: the likelihood has increased from 3 to 4 as a result of receiving a request for refund on a major scheme £32,324. Taking legal advice but likely to have to be paid back.

Risk reduced

CRR_NS18 Failure of public sector partnerships / withdrawal of financial support: likelihood reduced from 2 to 1 - Rushcliffe Primary Care Network committing more funding to the joint Health Development Officers post.

CRR_NS19 Failure to safeguard children and vulnerable adults: likelihood decreased from 2 to 1 - the risk has improved with all staff undertaking E-

learning Training and the Steering group now meeting again on a quarterly basis.

OR_CED01 Threat of violence to staff: likelihood reduced from 3 to 2 - likelihood was increased due to covid, but has now been reduced back to unlikely

Risk change

CRR_FCS23 ICT supplier goes out of business: the impact reduced from 3 to 2 and likelihood increased from 2 to 3 - there is a lot of uncertainty and acquisitions happening in the technical market for companies struggling and on the verge of bankruptcy. One of our suppliers have recently been acquired. A number of factors are contributing to the instability of suppliers.

Members asked a specific question in relation to taxi licensing and whether the standard of taxis in Rushcliffe had been affected by cheaper licensing fees offered by other authorities, and whether the Council had noticed any loss in income due to taxi’s obtaining these cheaper licenses, proposing that taxi licensing should be considered as a risk to both the Boroughs standards and loss of income. The Service Manager – Corporate Services explained that as Rushcliffe’s standards for taxi licensing had increased, taxi drivers were safer, thus eliminating any risk. The Service Manager – Finance added that there had been no financial loss.

The Chairman highlighted Operational risk OR_DEG08 ‘Loss of income as a result of the refund of planning application fees’ and asked whether the increase in likelihood from 3 to 4 could rapidly escalate. Councillor Butler as the Chairman of Planning Committee explained that this was due to a refund on a major planning application and was an exceptional example. The Chairman questioned whether this risk should increase if it were an exception and the Service Manager – Corporate Services will request it be reviewed at the next Risk Management Group meeting.

It was RESOLVED that Governance Scrutiny Group:

a)    Noted the report contents

b)    Considered and made recommendations on risks that have red alert status