Corporate Risk Management Review
To consider an update on the findings of a recent review undertaken by Zurich Municipal of the corporate Risk Management arrangements and the resultant action plan to address the recommendations.
The Committee considered a report on the findings of a recent review undertaken by Zurich Municipal of the Council’s corporate Risk Management arrangements and the resultant action plan drawn up in response to the review’s recommendations.
The full report by Zurich Municipal was attached at Appendix A to the officer’s report and the resulting action plan was attached at Appendix B.
Points and comments included:
· Four priority areas had been identified in the Zurich Municipal report, these being:
o Improving the link between strategy and risk by developing the role of the Executive and Portfolio Holders.
o Providing greater direct support to Directorate Management teams to build a robust risk profile and supporting the embedding of effective risk management practices.
o Reviewing risk management tools and processes to ensure they supported Directorate risk management effectively.
o Improving the level of risk management capability and awareness across Member and officer groups.
· The Head of Internal Audit and Risk explained that there was a recognition that the presentation of risk information by him was not as effective as it being delivered by the business itself. It was therefore proposed that a cyclical approach be adopted in which Directorates attended the Committee to present the information. In support of that approach a training programme of briefing sessions for the Directorate Management Teams and the Audit Committee would take place to ensure that all parties fully understood their role in the process.
· The Vice-Chairman expressed concern that the Audit Committee was being expected to perform a role which should be shared with the overview and scrutiny committees. He stated that the overview and scrutiny committees had an expert knowledge of those areas of business within the Council for which they had a scrutiny role. Further, the relevant Executive Members were required to report to those committees so questions relating to risk could be raised at that point. The Audit Committee’s role would be to ensure that this was happening. Other Members expressed support for these comments.
· The Head of Internal Audit and Risk stressed that the aim was to ensure that the Committee received direct assurance from the businesses that the processes were in place and were working effectively. The Director of Resources reminded the meeting that, under the Constitution, it was the Audit Committee’s responsibility to satisfy itself that robust processes were in place. Scrutiny had not, to date, become involved in this area though Audit Committee could recommend that this change and the current scrutiny arrangements be examined.
· The Director recommended support for the proposed cyclical programme of calling Directors before the Audit Committee so their processes could be challenged. This would reveal if any particular risk wasn’t being managed effectively so a recommendation could be made to the appropriate overview and scrutiny committee on this issue.
· Comment was made on the current review of the overview and scrutiny structure, the relationship to the proposals before the Committee and the need for General Purposes Committee to consider and approve any changes to the Constitution.
1 that the action plan attached at Appendix B to the Director of Resource’s report, and drawn up in response to the recommendations contained in the review of the Council’s corporate Risk Management arrangements by Zurich Municipal, be approved and adopted.
2 that the above action plan be incorporated into whatever changes that were required in order to implement the overview and scrutiny roles if they proved to be necessary.
3 that an update on the implementation of the action plan be submitted to the Audit Committee on 29 October 2019.
4 that a full review of the implementation of the above action plan be submitted to the Audit Committee on 3 March 2020.
(Note: Minute AUD/18/40 below also refers).
- 12 Corporate Risk Management Review v2, item 36. PDF 71 KB
- 12 Appendix A - Corporate Risk Management Review FINAL_Redacted, item 36. PDF 336 KB
- 12 Appendix B - Corporate Risk Management Review, item 36. PDF 49 KB