Meeting documents
Cabinet (DCC)
Thursday 19 June 2008
Meeting: Cabinet (County Hall, Durham - Committee Room 2 - 19/06/2008 10:00:00 AM)
Item: A5 The Work of Corporate Risk Management in Relation to the Year April 2007 - March 2008
 | |
| Report of Stuart Crowe, County Treasurer on behalf of the Corporate Risk Management Group [Cabinet Portfolio Member for Risk Management, Councillor Clive Robson] | |
The purpose of this report is to give an insight into the work carried out by the Corporate Risk Manager and the Corporate Risk Management Group during the year April 2007 - March 2008. As well as being good management practice, this report also responds to the Key Lines of Enquiry in the Use of Resources element of the Comprehensive Performance Assessment.
2. Background
A summary setting out how the Council deals with the risk management process is detailed in Appendix 2. The key achievements of risk management in 2007/ 08 are detailed in Appendix 3. The risks covered by this report are assessed and managed at both a service and corporate level within Durham County Council. Throughout this report, both in the summary and the Appendices, all risks are reported as Net Risk, which is based on an assessment of the impact and likelihood of the risk occurring with existing controls in place. The report contains of a summary of current strategic risks in attached Appendices 4 and 5.
3. Local Government Review (LGR)
Risks related to the LGR are being managed within the Programme, and these risks are distinct from the service and corporate risks of the County Council covered by the remainder of this report. The Corporate Risk Manager of the County Council is providing support to the Programme in the management of risk.
4. Current Status of Risks to the Council
At the end of March 2008, the major risks being managed were:
· Failure to effectively manage the implementation of the LGR Programme. There is a process in place to manage the risks to the Programme. This is part of the overall programme governance structure, which has been established to reduce the impact and likelihood of this strategic risk occurring.
· Failure to effectively implement an equality proofed pay structure under Single Status and Job Evaluation. Management continue on an ongoing basis to actively address these risks.
· Failure to deliver the Building Schools for the Future programme within time and budget, with minimal disruption to service delivery. Risks are managed by the project team, and key risks are highlighted monthly to the project board.
· Failure to effectively implement the proposed Waste Management Contract. Risks are managed by the project team, and key risks are highlighted to the joint Member/ Officer Waste Management Contract project board.
5. Summary of the changes to major risks in 2007- 08
Services formally review their risks during the year, and consequently, there have been a number of changes to the top risks compared to the last annual report. A major factor in the changes has been due to the increased risk awareness and experience of managers, resulting in improved quality of risk assessments. In addition to the increasing risks following the commencement of the LGR Programme, other major changes to note include:
· Risks surrounding the effectiveness of managing commercial relationships and projects have been identified and assessed as significant enough to be included in the strategic risk register.
· The project to implement a corporate Contact Centre has now been completed, and consequently, this is no longer a strategic risk to the Council.
6. Emerging risks
In the quarter January to March 2008, no major items emerged which raise a potential significant risk.
7. Recommendation
It is recommended that Cabinet agree the risks detailed in Appendix 5 of this report as the revised register of strategic risks to the Council.
| Contact: David Marshall, Corporate Risk Manager Tel: 0191 3835726 on behalf of the Corporate Risk Management Group |
Appendix 1: Implications
| Local Government Reorganisation (Does the decision impact upon a future Unitary Council?) Risk management covers the Council’s progress towards a Unitary Council. Finance Addressing risk appropriately reduces the risk of financial loss. Staffing Staff training needs are addressed in the risk management training plan. Equality and Diversity None Accommodation None Crime and disorder None Sustainability Moving forward, risk management will increasingly highlight the key risks around sustainability. Human rights None Localities and Rurality Managing risk will positively impact localities by improving the Community Leadership of the Council. Young people None Consultation None Health None Appendix 2: Background |
To date within the Council, a large amount of work has already been carried out in shaping and developing our approach to risk management. In summary, Cabinet and the Corporate Management Team have designated the Deputy Leader of the Council and the County Treasurer as Member and Executive Risk Champions respectively. Together they jointly take responsibility for embedding risk management throughout the Council, and are supported by Keith Thompson (Assistant County Treasurer), the lead officer responsible for risk management, as well as the Corporate Risk Manager. Each Service also has a designated member of staff (the Service Risk Manager) to lead on risk management at a Service level, and act as a first point of contact for staff who require any advice or guidance on risk management.
Collectively, the Service Risk Managers and the Corporate Risk Manager meet together as a Corporate Risk Management Group. This group monitor the progress of risk management across the Council, advise on corporate and strategic risk issues, identify and monitor corporate cross-cutting risks, and agree arrangements for reporting and awareness training.
An Audit Committee is in place, and one of its key roles is to monitor the effective development and operation of risk management and overall corporate governance in the Authority.
It is the responsibility of the Chief Officers to develop and maintain the internal control framework and to ensure that their Service resources are properly applied in the manner and to the activities intended. Therefore, in this context, Heads of Service are responsible for identifying and managing the key risks which may impact their respective Service, and providing assurance that adequate controls are in place, and working effectively, to manage these risks where appropriate. In addition, independent assurance of the risk management process, and of the risks and controls of specific areas, is provided by Internal Audit. Reviews by external bodies, such as the Audit Commission, Ofsted and CSCI, may also provide some independent assurance of the controls in place.
Risks are assessed in a logical and straightforward process, which involves the Risk Owner (within the Service) assessing both the impact on finance, service delivery or stakeholders if the risk materialises, and also the likelihood that the risk will occur over a given period. The assessment is confirmed by the Service Management Team, and Chief Officers agree their Service Risk Register with the Cabinet Member responsible for their Portfolio Service.
Appendix 3: Achievements in 2007-08
| The main achievements of risk management in 2007-08 are: · Risk management is assessed as part of the Key Lines of Enquiry in the Use of Resources element of the Comprehensive Performance Assessment. In the 2007 assessment, our score improved from level 2 to level 3. · Independent internal and external reviews of the risk management function, undertaken during the year, concluded that the Council is embedding risk management into the wider business processes, although improvements can always be made. · Members are supported in their strategic decision-making following the implementation of a process to assess and report risks associated with Key Decisions. · Risk management training for appropriate staff, and for Members from the Council, the Durham Police Authority, the County Durham and Darlington Fire and Rescue Authority and the Parish Councils has been delivered under a series of courses designed by the corporate risk management team. · The facilitation of a number of risk management workshops on key projects, such as the Waste Management Contract, has taken place. · Reports are now presented to the newly constituted Audit Committee, in addition to Corporate Management Team and Cabinet. · As part of our annual review of risk management arrangements, the Cabinet approved the roles and responsibilities for risk management. · A risk management page has been implemented on the Intranet to improve communication. · Key documentation, such as the strategy, policy and manual, have been reviewed and improved. Appendix 4: Current Major Risks facing Durham County Council as at 31 March 2008 (summary) | |
To view tables, please refer to PDF attachments or Hard Copies Located in the Record Office or Corporate Services.
Attachments