The Committee considered a report of the 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 January and May 2022 (for copy see file of minutes).
The Principal Risk and Governance Office highlighted the changes since the last report. He informed Members that five new risks had been added to the risk register relating to construction industry price inflation, homelessness, leisure/retail units, Ash Dieback disease, and demand for children’s safeguarding services. Risks relating to poverty, energy prices and urgent and emergency care service had been amended and two risks relating to Covid19 and the suspension notice on Mountsett Crematorium had been closed. Updates on eleven risks were provided in the report and one emerging risk was highlighted relating to adult social care charging reforms.
Responding to a query from Mr Rudd regarding risks relating to energy price increases, the Head of Corporate Finance and Commercial Services advised that the Council purchases energy for all council buildings and contracts including Schools through NEPO who act on behalf of twelve North East Authorities. He added that NEPO had agreed a forward purchasing strategy and for the financial year 2022/23, 66% of energy had been secured in advance of the increase and the price Cap would be in effect for the next six months. A Working Group lead by the Corporate Director of Neighbourhoods and Climate Change were to consider ways of reducing the Councils energy usage. It was noted that 25% of next year’s energy had been purchased, however 75% was at risk of the energy market and would be reflected in the Medium Term Financial Plan.
That the report provides assurance that strategic risks were being effectively managed within the risk management framework across the Council.