Agenda item

The report updates the Audit & Governance Committee Members on the corporate risk register (the register) as at October 2023.

The Committee is asked to:

Note the contents of the corporate risk register as at October 2023.

Malcolm Davies, Head of Insurance, Anti-Fraud & Risk introduced the Corporate Risk Register report to the Committee.

The Committee requested assurance on the processes in place to reduce red risks through the introduction of new control actions if required. Officers noted improvements were needed to ensure deadlines for future control actions were met. Improvements under the new risk management system had been implemented to address this, a control measure target deadline was now a mandatory field for completion by risk owners and could be used by Corporate Directors to hold risk owners accountable.

The Committee raised concerns around risks within the report where control measure target dates were in the past and queried if this was due to a lack of engagement by officers. Officers advised improvements to ensure the correct risks where on the register with the appropriate rating had been completed but work was ongoing to support capacity and cultural prioritisation of risk issues by officers.

Members asked whether the risks regarding temporary and exempt accommodation providers were captured on the risk register, noting these risks could affect some of the borough’s most vulnerable residents and had potential financial impacts for the council. Officers advised exempt accommodation had been area of focus in 2022/23 as it had caused a financial overspend. A project had been initiated in 2022 to address the issues regarding support exempt accommodation, this had included information sharing with Birmingham council. At present the project was on track to deliver £1.6 million in savings this financial year. The council was working with all exempt accommodation providers in the borough to change the financial model. This would achieve compliance with both support expectations and housing benefit regulations, enabling the council to claim the Department of Work and Pensions (DWP) grant. The team was working with neighbouring local authorities to ensure consistency in their approach where service providers were delivering in multiple boroughs.

The Committee queried the speed of change in likelihood ratings within the register and questioned how objective owners had been in assessing likelihood of risks previously. Officers advised the risk framework guide was intended to clarify the rating levels for risk owners. The Risk Team challenged where high levels were not appropriate, encouraging use of the guidance which was more empirical.

On reprocurement risks, the Committee queried the scope, value and financial implications of the contracts in question. Officers advised contracts remained a challenge, work had been undertaken to complete the council’s contract register which demonstrated a larger number of upcoming renewals. There was now transparency on what needed to be done over the next three years however there could be financial implications on budgets where contracts had not been renewed.

The Committee heard a Deputy Cabinet Member for Contract Management had been appointed for this area of focus.Work was ongoing to embed the timely processes required for procurement and cultural understanding of this within the council. Cabinet was receiving quarterly updates as part of the new procurement process, this reporting provided greater visibility and a deep dive into this area by the Committee would be welcomed.

In response to questions Officers advised risks were reviewed quarterly and confirmed the next Committee report would be updated with future control measure target dates.

Members queried the likelihood of progress for the Whitgift Centre. Officers advised this was static due its control measures being far in advance and other factors including wider regeneration and the U.K retail landscape.

The Committee raised concerns around the adequacy of the controls in place for the gas safety contract mobilisation risk. Officers suggested the Committee may wish to conduct a deep dive in this area and advised this issue had been prioritised and recently escalated to a red risk.

The Committee discussed topics for the risk deep dive report due at the November committee meeting. Members suggested contract management and procurement risks due to the potential financial and legal implications, noting this was a key component of best value. Members also suggested the gas safety contract mobilisation, as this would provide a practical example of how the new procurement process and how the Housing Team were managing the ongoing risks. Support was expressed for this due to timeliness of the potential issues.

It was agreed that the risk deep dive report would focus on procurement with repairs servicing and gas safety servicing to be included as examples.

The Committee RESOLVED, to:

Note the contents of the corporate risk register as at October 2023.