To consider the report.

Steve Mappley, Insurance & Risk Manager, explained that he brought the report to the Committee every six months to outline the key strategic risks, so that the Committee was provided with assurance that processes were in place to mitigate key risks. Key operational risks were also mentioned in the report. The approach to management of risk was detailed which showed things like metrics, definitions, processes, responsibilities and the assurance strategy.

Councillor L Jones noted that a risk around the failure to deliver a sound Borough Local Plan had been removed. She said that there was a possible court case around this and asked if this risk had been removed too soon.

Emma Duncan, Monitoring Officer and Deputy Director of Law & Strategy, said that the consequence of legal action on things like the accounts was considered as this could have a material impact on the budget. When the Annual Governance Statement was considered later in the year, there would be a risk management framework which would include consideration of any legal risks. There were no legal risks at the current time which would impact on the budget or finances of the council. Considering the Borough Local Plan, the worst case scenario was that the court would declare that the council had made the wrong decision and the decision would then simply need to be remade. Therefore, the risk to the council in this case was not substantial.

Councillor L Jones said that if there was a delay to income due to the Borough Local Plan, this would then not be considered a material issue. If it progressed further, then that judgement could change.

Emma Duncan confirmed that this was correct, the court case was not yet off the ground. If required, the council could review the risk to this legal challenge should things progress.

Councillor Hilton asked if a court case could only be successful if the review found that there was a fault in how the council arrived at the decision that had been made.

Emma Duncan said that the decision could be referred back to the council, or if the court decided the decision would have been made anyway regardless of the fault then the decision would not need to be remade.

Councillor L Jones was concerned that flooding had not been mentioned in the risk register, it had impacted the council a significant amount in the past.

Steve Mappley said that flooding was on the risk register but was treated as an operational matter rather than a strategic one. The Executive Director for Place had considered how well the council could deal with an emergency situation arising due to a flooding event and also what were the prevention measures to stop the event before it occurred. Steve Mappley said that he was happy to circulate the detail of the risk to Members of the Committee after the meeting.

ACTION – Steve Mappley to circulate the detail on the flooding risk to Members of the Committee.

Councillor L Jones was concerned that the withdrawal of financial stimulus by the government could affect the financial strategy, particularly as one off grants from the government may not be coming. She asked how this had been taken into account on this risk.

Andrew Vallance said that no council had certainty on government grants. All officers could do was continue to monitor it, the Medium Term Financial Strategy would be brought forward in the next few months. The current position on financial settlements was short term.

Councillor L Jones noted that Cabinet Members were informed of changes to key risks, she asked if the Chairman and the Vice Chairman of the Committee should also be kept informed of changes as they occurred.

Adele Taylor said that one of the first elements of the internal audit plan for the financial year was around risk management and a review of the risk management processes which the council undertook. Cabinet Members were informed of changes during their Cabinet Member briefings, Shadow Cabinet Members were also briefed of changes. If anything changing was a key strategic risk, officers would look to brief all Members.

Councillor Hilton confirmed that during his Cabinet Member briefing, a significant part of the discussion was around risk.

The Chairman asked how far in advance officers were notified about the changes to funding from the government.

Adele Taylor explained that the budget was brought forward with the knowledge that officers had at the time. Officers were usually notified in December each year of any withdrawal of funding from the government. Any risks where there was concern that funding would not come forward were highlighted to Members.

Councillor L Jones asked for an explanation of the risk appetite and how capacity could affect this.

Steve Mappley said that the risk appetite was where the council would be prepared to accept a given level of impact should the risk occur. Controls were used to bring the current risk exposure to a level consistent with whatever the appetite assessment position was.

Councillor Bond commented on the definitions for risk appetite in the report but could not see how they linked back to the risk register.

Steve Mappley said that he was hoping to provide the risk appetite definitions in the risk register going forward, due to an improvement in the software used.

Adele Taylor added that risk management was being reviewed so there could be some changes made.

RESOLVED UNANIMOUSLY: That the Audit and Governance Committee noted the report and approved the Risk Management Strategy.