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Risk Management Progress Update

Meeting: 30/07/2018 - Audit Committee (Item 167)

167 Risk Management Progress Update pdf icon PDF 247 KB

This report reviews and updates the Strategic Risks facing this Authority.

Additional documents:

Minutes:

The Committee received a report reviewing and updating the strategic risks facing the authority.

 

The Corporate Director drew the Committee’s attention to the changes to the Strategic Risks including that the Corporate Governance Group had recommended that the Newberries Car Park Development Scheme be reinstated as a Strategic Risk in its own right.  This was on the basis that investment had already been undertaken and that there was a potential risk of not achieving a return on its investment as well as a reputational risk. Additionally the Corporate Director informed the committee that anticipated income from this project was removed from the recently approved medium term financial plan applying a prudent basis due to the income which was at risk of non-realisation of the anticipated income. The Corporate Director further added that this meant the lost funding resource from Newberries had to be found from other sources.

 

Members felt that past investment represented a sunk cost and therefore as no income or expenditure was planned it did not represent a risk.

 

The Corporate Director advised that the Strategic Risk Register was owned by the Council and that members could agree to amend this risk, however this was contrary to her own view, which, as Hertsmere’s Chief Finance Officer (s151), was that Newberries Car Park should remain in the Strategic Risk Register as a risk in its own right.

 

The Committee voted on: Removing Newberries Car Park Development Scheme from the Strategic Risk Register.

 

3 voted in favour, 1 voted against and 1 abstained.

 

RESOLVED that:

1.    The current strategic risks be noted and in particular the following amendments and additions as detailed in the report:

(a)  The withdrawal of the risk “Parking Services - new partnership arrangement” [SSG15].

(b)  The withdrawal of the risk “Transfer of verge maintenance back to HCC” [SSP09].

(c)  The new risk of “Role of elected members on Council company Boards” [SO30].

 

2.    That “Newberries Car Park Development Scheme” [SO22] should not be escalated to Strategic risk level and should remain part of the Asset Development risk.

 

3.    The annual report May 2017-May 2018 be noted.