Agenda item

The Committee considered a report from the Interim Corporate Director of Resources which highlighted the strategic risks facing the Council and gave an insight into the work carried out by the Corporate Risk Management Group between October and December 2020 (for copy see file of minutes).

The Risk, Insurance and Governance Manager highlighted the changes since the last report. He informed Members that the risk relating to the County Durham Plan had been closed. The risk relating to replacement cremators at Mountsett Crematorium had been delayed with the installation start date being put back until June 2021 due to the current COVID-19 restrictions for international travel, with the first installation to be completed in September 2021 and the second in December 2021.

Councillor Temple raised concerns that the Milburngate development was not listed on the risk register. He felt there would be significant changes in risks relating to income and expenditure as contracts were signed before the COVID-19 pandemic. The Risk, Insurance and Governance Manager advised that as part of the risk assessment review all areas are considered. Any risk in relation to the development has not been considered significant enough to be included on the risk register at this stage.

The Interim Corporate Director of Resources added that the Commercial Headleases update presented to Cabinet in February 2021 referenced the continual risk assessment for commercial projects. Although the updated financial model indicated a smaller surplus than originally forecasted, prudent assumptions still indicate an adequate surplus so as not be considered a significant risk. He advised that the Council’s property investment strategy was prudent and measured in its approach and only considered strong business cases in terms of regeneration and significant jobs for the County. The financial model would be reviewed quarterly for changes and it was anticipated that the impact of COVID-19 would be short term and that the economy would improve. The commercial deal at Milburngate reflected a long term investment in this development.

Resolved:

That the report provides assurance that strategic risks were being effectively managed within the risk management framework across the Council.