Agenda item

To receive the report, which asks the Committee to note the current status of the corporate risk register.

The Committee received the report, presented by the Audit Manager, Veritau who explained that this report contained the twice-yearly update on movements within the Corporate Risk Register, which was last reported to the Committee in July 2022.

Members noted that the Leadership Team had collectively reviewed and re-assessed each of the Council’s current risks in January 2023. 

The Committee was informed that there was a total of 12 risks on the Council’s Corporate Risk Register for 2022-2023, with no new risks being added.  It was highlighted that the Corporate Risk Register included five risks with a score of 12 or more (high risk), this had increased by one since the Corporate Risk Register was last reported to committee in July 2022.  It was confirmed that this was a result of the ‘Economic Environment’ risk having moved from a score of 9 to 12 due to high inflation and energy costs, as well as continued challenges accessing labour supply, all of which threatened investor and consumer confidence.

Members heard that the ‘Local Government Reorganisation’ (LGR) risk remained the most significant risk faced by the Council, with a score of 20, unchanged from the previous assessment. It was explained that this was due to the work required to be undertaken by the Council as part of the transition, and the uncertainty associated with LGR continued to create significant capacity challenges.

Finally, the ‘Managing Partnerships’ risk had increased from a score of 6 to 9 due to the proximity of vesting date, and the challenge of successfully bringing existing arrangements into the new North Yorkshire Council (NYC). Members were informed that Council officers from Selby represented Selby District Council on the LGR Strategic Risk Management Group and had provided input into the new NYC Corporate Risk Register.

In terms of mandatory staff training a Councillor queried what percentage of staff had completed the mandatory health and safety training, and as a risk had been identified around the lack of a fire warden for the Civic Centre building, had this risk been addressed.  The officer was unable to provide an answer to the queries but stated that he would speak with the officers concerned and circulate the information to the Committee.

One Member raised concerns and asked a number of questions in relation to the five risks which had been identified as high risk on the register and what he considered to be a failure to control those risks.  Another Member commented that the report was very clear, that most of the risks were factors outside officer’s control and that officers had acknowledged and identified the risks and put in place the necessary mitigating actions to plan for unforeseen circumstances.

The Chief Finance Officer confirmed that there were mitigating actions in place for the financial challenges which faced the Council, however circumstances changed on a regular basis and therefore the risks did not diminish.  It was further confirmed that despite the challenges and pressures such as high inflation, energy costs, the impact of Covid-19 on income streams, the Council continued to perform and be financially sustainable.

In response to a query regarding the ‘Economic Environment’ risk and why leaving the European Union would present a risk to Selby, it was confirmed that there were businesses within the Selby district who operated in the European Union and the wider world, which presented a potential risk around uncertainty in trading conditions which could impact on those businesses and then on the local economy.

Discussion took place regarding inflationary pressure, wage growth, fluctuations in interest rates, the cost of living crisis and the Councils investment income. Members were informed that the risks were all covered in the wider economic environment and had been analysed and assessed, and controls implemented to reduce the impact of the risk.

RESOLVED:

                      To note the status of the Corporate Risk Register.