Decision Maker: Cabinet
Decision status: Recommendations Approved
Is Key decision?: Yes
Is subject to call in?: Yes
To seek Full Cabinet approval for the
Council's refreshed Risk Management Policy.
The Cabinet was informed about updates to the Council’s Risk Management Policy.
Members were advised that the updated policy was endorsed by Audit Committee on 20.09.2021. The policy had been amended to include two new areas of guidance - risk appetite strategy and confidential risks, the details of which were set out in the report.
The amendments clarified policy, provided sufficient guidance and informed officers of when and how to seek further guidance if needed.
On receiving the report Members commented on the detail contained in the policy which was needed but requested if a one page summary covering the key elements could be produced as well. Members noted the importance of embedding risk understanding in the organisation. It was important that individuals at every level consider, quantify and evaluate the risk they are undertaking and those assessments are then managed and escalated if required.
There was a discussion around managing high impact risks and whether this policy covered such risks. Officers advised that lot of work was done at a corporate level and operational level to manage risk and systems were in place to embed knowledge and understanding. Officers also made the point that ownership of risk was clear with accountability sitting with officers, but it was recognised that there were also political implications as well. It was suggested that Cabinet Members during their briefings could be provided with more information regarding risks pertaining to their portfolios.
With regard to risk and reward Officers advised that this would come under risk appetite, the example was given that with safeguarding the risk appetite would be very low, with projects there may be greater risk appetite because the rewards were higher. Audit Committee also played a role in reviewing where the thresholds for risk and reward were set. Officers confirmed that within the policy there was an escalation management framework, which ensured proper oversight of the risks was being taken.
That the changes in the Council’s Risk Management Policy be noted and approved.
Report author: Mark Wills
Publication date: 15/10/2021
Date of decision: 14/10/2021
Decided at meeting: 14/10/2021 - Cabinet
Effective from: 23/10/2021