Mr Anthony Sotande-Peters, Interim Strategic Risk Advisor introduced this report stating that the purpose of the report was to inform members of the ways in which risks are identified and managed. The report provided a summary of risk activities over the third quarter 2019/20. Mr Sotande-Peters said there were 11 corporate risks on the corporate risk register, three of which were red rated, five were amber and three yellow.

In response to questions from Members the following was noted:

·         With regard to the comment at paragraph 3.3, Members asked why actions were not followed up from Audit Committee meetings. Mr Rock responded stating changes had been made to take into account the request for Members to have an increased role in identifying risks for the corporate risk register. He said the Risk Strategy was to be reviewed and it would be timely for Members to get involved.

o   ACTION: Members requested training on risk management which explained how risks are identified for the corporate risk register and what happens to risks that do not make the register.

o   ACTION: Members agreed they’d like be sent the risk registers of each directorate and then going forward review, through a rolling programme, one Directorate register per committee meeting and invite the Corporate Director responsible to future meetings, for a deep dive session.

·         In reference to page 67 of the agenda and risk THB0001, the Chair asked why the narrative, in relation to preparing for leaving the European Union – i.e. Brexit had not been updated to reflect the current situation. Mr Rock accepted the summary for this risk required updating. The risk was being managed across the council. A significant amount of work was required to ensure risk owners took responsibility for their risks and control of risk was effective.

·         Members enquired why the Transformation programme was not on the corporate risk register. Mr Neville Murton responded saying the transformation programme was sub-divided into smaller projects and individual Directorates were responsible for managing the risk related to their area. Councillor Salva-Macallan said she would expect to see the risk to be higher up on the register as collectively it was a big risk for the Council.

·         Ms Charlotte Webster, independent person, enquired if risks are aggregated to show if risks are high, medium and low risks. Mr Rock said the organisation had not matured enough to allow for this type of risk management however he agreed this would be the direction of travel for the organisation. Risks such as the Veolia contract, the new Town Hall and ICT were on Directorate risk register.

The Audit Committee RESOLVED to:

1.    Note the corporate risks and recommend changes and updates as necessary ensuring risks identified are those that could prevent the Council achieving its aims and objectives.

2.    Where applicable, request risk owner(s) with risks requiring further scrutiny to provide a detailed update on the treatment and mitigation of their risk including impact on the corporate objectives at the next meeting.

3.    Ensure that an effective risk management framework is in place within the council and provide leadership so that the council becomes risk mature, dynamic organisation.