Agenda item

To receive an update with regard to Risk Management and Insurance.

A report by the Head of Function (Resources) on progress on implementing the Risk Management Framework along with a revised version of the Corporate Risk Register and an update on Insurance Claims was presented for the Committee’s consideration.

The Head of Function (Resources) informed the Members that the report outlines the position with regard to embedding risk management arrangements across the Authority. Those arrangements continue to embed and it is recognised also that there are certain risks which require further officer clarification.

The Risk and Insurance Manager said that the Performance Review Group reviewed the Service Risk Registers and the Corporate Risk register on 2^nd July, 2013. The Group’s recommendations have been incorporated in the revised version of the Corporate Risk Register including its identification of the top four risks to the Council as outlined in the report. The Officer proceeded to refer to the Council’s Insurance claims experience for the period from 1 April, 2007 to 31^st March 2013 which is notable for the 40% increase in public liability claims received during 2012/13 and which is attributable to claims for damage to vehicles due to the condition of the Council’s roads.

Members considered the report and they highlighted the following matters as points of discussion –

·         The overstatement of reputational damage as a risk remains a feature of the revised Corporate Risk Register especially as its identification in relation to certain areas appears random and unnecessary and draws attention to what is a historical issue.

·         That the Corporate Risk register appears overly busy which it was felt does not assist the Committee in its function of overseeing risk management within the Authority. It was pointed out that it was reported to the Committee in December 2012 that the Risk Register would be streamlined to provide coverage of the ten principal risk areas.

·         A lack of information regarding expected outcomes with regard to managing the risk areas meaning that the register is input rather than output loaded.

·         The reasons for the change in the top risks in the period since the previous update to the Audit Committee at its February, 2013 meeting. It was pointed out that whilst three of the five top level risks reported in February had fallen out of that category, there were now two new entries within the top four with no commentary to explain why.

The Insurance and Risk Manager explained that the Performance Review Group continues to consider reputational damage as a risk in several areas but will keep the position under review. The Senior Leadership Team did review the register and decided to retain the full register format rather than a streamlined version.

The Head of Function (Resources) said that the Corporate Risk Register in its current format is under development and it is recognised that it does not reflect outcomes and details about removing/mitigating risks. Over the coming months the register will be further developed to include information from the relevant officers.  The Officer confirmed that the Performance Review Group has and does review the register and that there have been movements in and out but that she would from now on report those changes to the Audit Committee and why they have happened.

It was resolved to accept the report and accompanying Corporate Risk Register and note their contents.

ACTION ARISING: Head of Function (Resources) to report movements of risks within, and in and out of the Corporate Risk Register and reasons therefore to the Audit Committee.