Agenda item

Consider presentation on corporate risks by Chief Executive.

3.1       The Chair introduced Chief Executive to give a presentation on corporate risks.  Mr Robertson presented with a slide outlining the organisational structure and its directorships.  SBC managed approximately 5,500 staff, a revenue budget of £344 million, a capital plan of £500 million, and 137 discrete functions within the structure.  The risk management landscape covered the following areas:

·                Environmental (geography, rurality and energy risks)

·                Legal (statutory obligations, current and future legislation)

·                Technological (new and emerging technologies, and cyber-security)

·                Social (demographics, poverty levels, and public health and wellbeing)

·                Economical and financial climate (market conditions and funding)

·                Political (government policies, international disruption)

3.2       Mr Robertson explained that Risk Management was not a one off process but was a continuous exercise which reflected that business priorities were subject to change and that risks, their internal controls and their mitigation actions changed also.  A Corporate Risk Register was reviewed quarterly by the Council Management Team where ‘red’ category risks were reviewed quarterly, ‘amber’ risks were reviewed every six months and ‘green’ risks were reviewed annually.  All Corporate and Service Risk Registers were recorded on the Pentana System to enable reporting.  Mr Robertson presented slides from the Risk Register to demonstrate how they were monitored, the description of risks, the risk owner and the last review dates.  Further Corporate Risk presentations were to be given to Audit Committee with regards to Property, Capital Projects, Climate Change, and Children and Young People and Adults at Risk of Harm.  Mr Robertson presented a detailed insight into Corporate Risk 032 Climate Change under Outcome One: Clean, Green Future.  The insight showed how the risk was managed, who managed the risk and the approach for how the risk was to be managed.  The Climate Change risk was assessed as a ‘red’ risk.  Further detailed insights were provided into Corporate Risk 019 Children and Young People/Learners Placement under Outcome Two: Fulfilling our Potential which was assessed as a ‘red’ risk; Corporate Risk 027 Capital Project under Outcome Three: Strong, Inclusive Economy, Transport and Infrastructure assessed as an ‘amber’ risk; Corporate Risk 030 Stakeholder Engagement under Outcome Four: Empowered, Vibrant Communities assessed as an ‘amber’ risk; and Corporate Risk 016 Insufficient Resources for the Delivery of the Commissioning Plan under Outcome Five: Good Health and Wellbeing assessed as an ‘amber’ risk.  Mr Robertson advised that the development of the National Care Service for Scotland provided uncertainty and had been identified as a new risk for SBC.  Corporate Risk 022 Corporate Change and Transformation under Outcome Six: Working Together Improving Lives was presented which was assessed as an ‘amber’ risk. 

3.3       Members thanked the Chief Executive for the presentation who answered questions on the Corporate Risk Register.  Mr Robertson explained that where risks presented did not have a named ‘Assigned To’ person, the risk reverted to being the named director as ‘Risk Owner’.  Some risks identified by SBC had limited actions that SBC could take based on resources or scope of the Council.  The Chief Officer Audit and Risk provided further explanation on the risk register that when the risk approach of the Council was to treat and not tolerate, then actions related to those identified internal controls that were not yet fully effective as well as new mitigation actions.  SBC were pursuing an ambitious capital plan that faced specific pressures on inflated construction costs and the ability to obtain contractors to deliver projects which led to the capital project being raised on the risk register.  Good project management skills were necessary and that had led SBC to commission project managers and other specific consultants to be able to deliver projects.

DECISION

NOTED the update.

MEMBER

Councillor Cox left the meeting during discussion of the above item.