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Audit, Governance & Standards Committee

14th March 2022

 

Risk Management Annual Report – 2021-22

 

Final Decision-Maker

Audit, Governance & Standards Committee

Lead Head of Service

Mark Green – Director of Finance and Business Improvement

Lead Officer and Report Author

Alison Blake – Interim Deputy Head of Audit

Classification

Public

Wards affected

All

 

Executive Summary

 

The Audit, Governance & Standards Committee is required to provide oversight of the Council’s risk management arrangements and to seek assurances that the processes are working effectively. This report, which is presented annually, sets out the details of how the risk management processes have been working across the Council, and the work plan for the upcoming year.

 

Purpose of Report

 

The purpose of this report is to provide assurance to Members on the Council’s risk management arrangements. As those charged with governance, the Committee must seek assurance over the effectiveness of the operation of the process as required through its Terms of Reference.

 

 

This report makes the following recommendations to this Committee:

1.   That the Risk Management Annual Report (Appendix 1) is discussed and noted.

 

 

Timetable

Meeting

Date

Audit, Governance & Standards Committee

14th March 2022



Risk Management Annual Report – 2021-22

 

1.       CROSS-CUTTING ISSUES AND IMPLICATIONS

 

 

Issue

Implications

Sign-off

Impact on Corporate Priorities

We do not expect the recommendations will by themselves materially affect achievement of corporate priorities.  However, risk management is a key component in the Council’s governance. Good governance underpins everything that the Council does.

Alison Blake – Interim Deputy Head of Audit

Cross Cutting Objectives

We do not expect the recommendations will by themselves materially affect achievement of corporate priorities.  However, risk management is a key component in the Council’s governance. Good governance underpins everything that the Council does.

Alison Blake – Interim Deputy Head of Audit

Risk Management

Risk management is the focus of this paper.

Alison Blake – Interim Deputy Head of Audit

Financial

Risk management support is provided through the Mid Kent Audit partnership within existing budgets. This decision therefore has no direct financial implications.

 

In general, effective risk management contributes towards strong financial governance and controls in the Council.

Section 151 Officer & Finance Team

Staffing

There are no staffing implications to this decision.

Alison Blake – Interim Deputy Head of Audit

Legal

The Accounts and Audit Regulations 2015

require the Council to have a sound system of control which includes arrangements for the management of risk. This report is part of those arrangements and is designed to

ensure that the appropriate controls are effective.

Interim Deputy Head of Legal Partnership

Privacy and Data Protection

This is a report in the public domain, and there are no associated privacy or data protection implications.

Policy and Information Team

Equalities

This report does not describe circumstances which require an Equality Impact Needs Assessment.

Equalities & Communities Officer

Public Health

 

 

While public health risks may be identified and reported through the risk management processes there are no public health implications for this report.

Public Health Officer

Crime and Disorder

While crime and disorder risks may be identified and reported through the risk management processes there are no crime and disorder implications for this report.

Head of Service or Manager

Procurement

While procurement risks may be identified and reported through the risk management processes there are no procurement implications for this report.

Head of Service & Section 151 Officer

Biodiversity and Climate Change

While biodiversity and climate change risks may be identified and reported through the risk management processes there are no biodiversity and climate change implications for this report.

Biodiversity and Climate Change Officer

 

 

2.      INTRODUCTION AND BACKGROUND

 

2.1     Risk management is the process undertaken to identify, evaluate and manage risks. In early 2016 the Council implemented a risk management framework designed to improve the risk management process. This included reporting and monitoring mechanisms for key risk information to be communicated to Senior Officer and Member level.  This framework was reviewed and updated in April 2019 to ensure that it remains fit for purpose and current.

 

2.2     The Audit, Governance & Standards Committee is required to provide oversight of the Council’s risk management arrangements and to seek assurances that the processes are working effectively. This report, which is presented annually, sets out the details of how the risk management processes are working across the Council.

 

 

3.   AVAILABLE OPTIONS

 

3.1In order for any risk management process to be effective it is vital that risk information is reported, that risks are monitored and that action is taken to manage risks to an acceptable level. Reporting risks to Members is necessary to provide assurance that risks are being managed.

 

3.2An alternative option would be to not report or monitor risks, but this would counter the effectiveness of the process, and would go against the terms of reference for this Committee.

 

 

 

 

 

4.        PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS

 

4.1   Effective risk management is a key component of sound governance. This Committee, as those charged with governance, must gain assurance that the Council is operating an effective risk management process, and that risks are being managed.

 

4.2   We therefore propose that the Committee discusses and notes the arrangements in place, providing any comments as required on the operation of the risk management process.

 

 

5.       RISK

5.1    This report is presented for information only and in itself has no risk management implications.  The work that it describes helps to contribute towards effective risk management.

 

 

6.       CONSULTATION RESULTS AND PREVIOUS COMMITTEE FEEDBACK

 

6.1 The risk management framework was designed and updated through consultation with Corporate Leadership Team.  All risk owners have been involved in the identification and assessment of the risks on the register. 

 

 

 

7.       NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE DECISION

 

7.1     Unless requested otherwise, we will continue to report annually on the Council’s Risk Management processes.

 

 

 

8.        REPORT APPENDICES

 

The following documents are to be published with this report and form part of the report:

·         Appendix 1: Annual Risk Management Report – 2021-22

 

 

9.        BACKGROUND PAPERS

 

The risk management framework was reported to Policy and Resources Committee in April 2019 and is publicly available on the Council’s website.