Mr Steven Tinkler, Interim Head of Audit and Risk Management 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 the risk activities over the second quarter 2018/19 and appended at Appendix 1 was the Corporate Risk Register.

In response to questions raised by the Committee the following was noted:

·         Members asked for an explanation in relation to the Risk Appetite Matrix on page 25 of the report. Mr Anthony Sotande-Peters, Interim Strategic Risk Advisor explained the matrix was an illustration of the types of risks involved and had been devised following a risk appetite exercise with the Senior Leadership Team. Dependant of the risk score, the description below the matrix, indicated if it was a low or high risk.

·         In relation to PLC0013, cladding on high rise blocks, Members enquired how the borough compared with others and what resources had be allocated to avert this risk.  In particular Members enquired if the Council had any powers to get private landlords to comply. Mr Robin Payne, Interim Divisional Director for Public Realm stated that the borough compared favourably with others however he would get a further update for Members. Mr Payne said the legal framework following the Grenfell tragedy still needed to catch up and at present it would be difficult to get private landlords to comply. 

·         Cllr Wood suggested to Members they should list the risks they thought should be on the register and then compare this with the actual risk register. Members should be asking if they agree with the list presented to them.

·         In relation to CSDR0011 – page 33 Members enquired why this was still on the register. Had a challenge against the Council ever been to Court? Officers were asked to review this.

·         RCPCD0022 – page 31 Members enquired why the risk of a temporary lease had not been resolved. Mr Anthony Sotande-Peters said the risk remained until the negotiations had been concluded. He said the risk score would change once it was clear what would happen with the lease. Mr Sotande-Peters stated he would have a better idea by December 2018.

·         PLC0013 –page 29 Members enquired if water ingress into electrical wiring posed a fire risk and if this had been look at. Mr Robin Payne explained inspections of this nature would be conducted by Tower Hamlets Homes and other registered social landlords however the enquiry would be passed on to the Interim Divisional Director for Strategy, Regeneration and Sustainability, Mr Mark Baigent in order to get a fuller response.

·         RSB0019 Page 33, Members enquired if there was a separation of powers in regard to the Full Budget policy which comes to Council and the MTFS. Mr Neville Murton, Acting Corporate Director for Resources stated the MTFS provided Members with the longer term view of the financial position of the Council. The budget setting was a statutory requirement which is set every year.

·         CSDR0011 – Page 33, It was stated that the challenge was heard in Court on the 25^th October with the judgment to be delivered in December 2018. Mr Steven Tinkler stated he would get an updated position and will circulate this to the Members.

The Committee AGREED to NOTE:

1.    The corporate risks and recommended changes and updates as necessary;

2.    Requested risk owner(s) with risks requiring further scrutiny provide a detailed update on the treatment and mitigation of the risk including impact on the corporate objectives at its next meeting; and

3.    Ensure that an effective risk management framework is in place within the Council and leading the council to be a risk mature, dynamic risk organisation.