The new Strategic Risk Management Framework aims to build on the council’s established risk management practice and strengths, by delivering improvements at a strategic and whole Council level.
Cabinet Portfolio Holder – Councillor Peter Butlin
Councillor Peter Butlin explained to Cabinet that the Strategic Risk Management Framework sets out the council’s attitude to risk. The Audit and Standards Committee had given the framework its full support.
Councillor Kam Kaur commended officers for their efforts in producing what the auditors have commended as a very good document.
That Cabinet approves the Strategic Risk Management Framework at the Appendix of the published report.
The report and appendix are attached.
Chris Norton (Strategy and Commissioning Manager, Treasury, Pension, Audit & Risk) introduced the report, stating that the Authority’s Risk Framework was last reviewed in 2014. The report was the product of a project undertaken over the past 12 months led by the Risk Manager seconded from Internal Audit with key contributions from colleagues in the Corporate Policy team. Marsh Risk Consulting had provided input during the early stages of the work.
Chris Norton advised that the report presented a set of risk principles which were applicable across service settings. A risk appetite had been set for various aspects of the organisation’s objectives and services. The Framework was based on the principle that risk is rewarded. It did not advocate risk for its own sake but recognised the importance of exposure to risk in order to access opportunities.
Chris Norton advised that a more sophisticated risk assessment matrix had been devised, providing a high level of detail to monitor risk. A new layer of reporting of risk registers at directorate level had been introduced. Risk management would be integrated within performance management and business planning processes to support decision-making and inform interventions.
Councillor Gifford commented that an entirely risk-averse stance constituted a risk in itself. This underlined the importance of the Framework.
The quality of the report was widely praised, and the Committee indicated its support for the proposals.
That the Committee commends the Strategic Risk Management Framework to Cabinet for approval.