Document Sample
STRATEGIC RISK REGISTER MATRIX screenshot Powered By Docstoc
					                                                                              Agenda Item No. 8


 To:                         Audit and Accounts Committee

 Date:                       23rd September 2009

 From:                       Head of Audit and Risk Management

 Electoral Division(s):      All

 Forward Plan Ref:           N/A                               Key decision: No

 Purpose:                    To update Members on Strategic Risk Register 2009/10

 Recommendation:            Members are asked to note the Strategic Risk Register for
                            the current year and to consider which of the Strategic Risk
                            owners should be invited to speak to the Committee on the
                            actions they are taking to manage these risks.

         Officer contact:                                       Member contact:
Name:    Helen Maneuf                             Name:         Councillor John Reynolds
Post:    Head of Audit and Risk Management        Portfolio:    Cabinet Member for Corporate
Email:       Email:
Tel:     01223 699144                             Tel:          01223 699173


1.1   The purpose of this paper is to advise Members of the Audit and Accounts
      Committee of the Council’s Strategic Risk Register for 2009/10, and to ask the
      Committee to chose Strategic Risks that it wishes to receive greater assurance
      upon in future meetings.


2.1   The draft register was presented to members of the Audit and Accounts
      Committee in November 2008 for consideration and comment. Amendments
      were incorporated. Cabinet endorsed the Strategic Risk Register at its meeting
      in February 2009.

2.2   The Register shown in Appendix 1 contains the 20 strategic risks. Each risk is
      assigned to a risk owner. Risks shown in the upper right hand shaded area are
      considered to be above the Council's 'risk appetite' and therefore require action
      to manage and mitigate. Risk owners are required to give quarterly updates on
      the actions that they are taking to manage Strategic Risks. The Management
      Action Plans are monitored by the Risk Champions Group who provide Strategic
      Management Team with updates on progress.

2.3   The Audit and Accounts Committee has expressed a desire to invite Strategic
      Risk owners to the Committee to discuss and receive assurance upon the
      actions being taken to manage Strategic Risks. As the first such exercise, the
      Director of Finance, Property and Performance will attend the September
      meeting to discuss the group of economic risks for which he has lead


3.1   Much work has already been carried out to introduce and embed Risk
      Management within the Council. The latest Use of Resources Assessment
      assigned a rating of 3 (performing well) to the way in which the Council manages
      its business risks.

3.2   Three years have now elapsed since the process of embedding Risk
      Management began and it is reasonable to suggest that the Council can be
      described as “risk aware”. However, given the new management arrangements
      for Risk Management, which now forms part of the Audit and Risk Management
      Service since 1 September, and the broader organisational changes, it is
      considered to be a good time to review the operation of Risk Management within
      the organisation and determine a new strategy for the future.


4.1   Members are asked to note the Strategic Risk Register for 2009/10. Members
      are asked to review the Strategic Risks and suggest which Risk Owners should
      be invited to future meetings of the Committee to provide updates on actions
      being taken.


   Status         : Approved by Cabinet 24/2/09
   Version no     : 0.10
   Last reviewed: 12/2/2009

      Risk title       Unique    Sugge     Definition                                                               Risk Owner         Responsible
                       Risk      sted                                                                                                  Cabinet
                       Ref       score                                                                                                 Member

Note: Risks 1 - 18 are ongoing.
Safeguarding          1       C2           Arrangements and procedures in place to safeguard children are           Service Director   Cabinet Member for
Children Procedures                        insufficiently robust or managed and do not fulfil the different types   Children’s         Children
                                           of responsibilities we have to children in care, children known to the   Social Care
                                           Council, children in need and those not known to the Council.
                                           Increased scrutiny of current procedures in the light of national high
                                           profile serious case reviews

Safeguarding           2         C2        Arrangements and procedures in place to safeguard vulnerable             Service Director   Cabinet Member for
Vulnerable Adults                          adults are insufficiently robust or managed and result in harm to an     Adult Support      Adults, Health &
Procedures                                 adult receiving care from the Council.                                   Services           Wellbeing

Management of          3         C3        Ensuring that the Council undertakes robust preparation, both            Corporate          Deputy Leader
inspection                                 internally and with partners, for the substantially more challenging     Director People,
processes,                                 Comprehensive Area Assessment (CAA) inspection regime and                Policy and Law
outcomes and                               other associated inspections.
improvement plans

                                                                      Page 3 of 12
Economy      4   C2                                                                              Chief Executive   Leader of the
                      Failure to mitigate the differential impact of the current and                               Council
                      unpredictable economic circumstances resulting in greater impact
                      on Cambridgeshire than need be the case. Such failure would arise
                      from insufficient flexible, concerted and consolidated responses to
                      changing economic pressures and lack of adaptation of CCC
                      business processes.
Financial    5   C3                                                                              Corporate         Cabinet Member for
                      Risk of lack of robust financial management leads to overspends,           Director          Finance, Property,
Management            depletion of reserves and/or failure to achieve activity, performance      Finance,          Performance,
                      and reporting standards and targets.                                       Property &        People, Policy and
                                                                                                 Performance       Law

                      Key contributing factors include:

                      Continued economic recession; pay inflation, rising commodity
                      prices (fuel etc), falling investment returns, detrimental resolution of
                      prior year issues, failure to adequately drive efficiency, inadequate
                      control of individual capital schemes and cost shifting from health
                      and central government;

                      impact of new International Financial Reporting Standards with
                      changeover to new system from 2010/11.

                                                   Page 4 of 12
Financial Strategy   6    C2   Insufficient funding streams and resources to enable the Council to        Corporate          Cabinet Member for
                               sustain plans for maintenance and future growth and development            Director           Finance, Property,
                               of service objectives and initiatives.                                     Finance,           Performance,
                                                                                                          Property &         People, Policy and
                               Reductions in Government funding and further restrictions on               Performance        Law
                               Council Tax increases leading to a failure to deliver statutory and
                               moral care duties within a climate of demographic and cost pressure

                               Key contributing factors are;
                               economic downturn, comprehensive spending review, net impact of
                               growth on funding infrastructure and running costs, affordability of
                               major developments, improvement in value for money, failure of the
                               Section 106 programme to deliver anticipated resources, reduction
                               in asset sale receipts due to financial climate leading to
                               unacceptable curtailment of the capital programme, delivery of
                               efficiencies and inflated demands for support to the Pension Fund
                               following weakening of share values.

Estate Utilisation   7   C3    Failure to achieve: workplace environment improvements, revenue            Corporate          Cabinet Member for
                               savings and asset disposal targets.                                        Director           Finance, Property,
                                                                                                          Finance,           Performance,
                               Key managed risks are; Failure of BUPA programme, failure to co-           Property &         People, Policy and
                               ordinate IT, estate and organisational development activities, delays      Performance        Law
                               in reassigning leases and selling properties, failure to optimize
                               property disposals in difficult property market. Additional risk arising
                               from consequences of failure to achieve resulting in deterioration of
                               estate, increased maintenance costs, potential reduced market

Recruitment,         8   C3     The ability of the Council to recruit, retain and develop quality         Corporate          Cabinet Member for
Retention and                  employees (particularly in specific professional disciplines) is           Director People,   Finance, Property,
Development                    adversely affected by varying factors in the local and national            Policy and Law     Performance,
                               employment market.                                                                            People, Policy and

                                                            Page 5 of 12
Delivery of Growth     9    B3                                                                            Service Director   Cabinet Member for
                                 Housing growth targets for Cambridge sub region falling behind         Growth &             Growth,
Agenda                           target with consequent loss of affordable housing delivery as a result Infrastructure       Infrastructure and
                                 of general economic downturn and shortfall in anticipated developer                         Highways
                                 activity due to reduced market liquidity and availability of credit.
                                 Failure to provide transport infrastructure to accommodate growth
                                 resulting in congestion and damage to the economy and the

Building Schools for   10   D2   Failure of the BSF Programme (capital funding streams) results in        Service Director   Cabinet Member for
the Future (BSF)                 lost investment and inability to transform secondary and special         Strategy and       Learning (0-19)
                                 school education services and achievements for residents of              Commissioning
                                 Cambridgeshire.                                                          (Children &
                                                                                                          Young People’s
                                 Additional revenue risk linked to inability of schools and the Council
                                 to fund any revenue pressures arising from completion of the capital
Streetlighting PFI     11   C3   Failure of bidders to provide an affordable project for                  Service Director   Cabinet Member for
                                 Cambridgeshire which complies with its output specification and          Highways and       Growth,
                                 delivers its requirements for energy and carbon savings.                 Access             Infrastructure and
Shared Services        12   B3   The Shared Services programme does not achieve the required              Corporate          Cabinet Member for
                                 deliverables and outcomes in a timely manner, including                  Director People,   Finance, Property,
                                 procurement and transition to the new organisation, resulting in         Policy and Law     Performance,
                                 delays or reductions in service delivery and the realisation of                             People, Policy and
                                 benefits (financial and non-financial)                                                      Law

Partnership Working    13        Robust partnership agreements are not effectively secured with           Corporate          Deputy Leader
                                 relevant organisations and, as a consequence, the integrity,             Director People,
                                 accountability and effective management of performance and risk,         Policy and Law
                                 as well as the delivery of key objectives for Cambridgeshire is not
                                 achieved. Examples of the partnership agreements that this risk
                                 may be applied to includes: the Local Area Agreement (LAA),
                                 Countywide Thematic Partnerships, or the District based Local
                                 Strategic Partnerships (LSPs).

                                                             Page 6 of 12
Internal Control      14   E2   Internal control failures (e.g. Health and Safety, information              Corporate        Cabinet Member for
                                management/security, fraud and corruption) lead to exposure to              Director         Finance, Property,
                                legal action and/or reputational damage.                                    Finance,         Performance,
                                                                                                            Property &       People, Policy and
                                Key risk factor left off risk register resulting in inability to react to   Performance      Law
                                problem with sufficient urgency.

                                Disruption / loss of continuity to political management of the
                                authority during and following the election.

Business Continuity   15   C2   Failure of core information systems results in poor service and             Corporate        Cabinet Member for
and Community                   compliance issues.                                                          Director         Customer Service,
Resilience                                                                                                  Customer         Transformation and
                                Lack of adequate plans and measures result in service disruption            Service &        Special Projects
                                following critical event.                                                   Transformation

                                Council unable to achieve engagement with other responders to
                                ensure preparedness for delivery of its duties under the Civil
                                Contingencies Act in response to major incidents (widespread
                                flooding/pandemic influenza/ terrorist incidents) affecting the
                                community and its recovery.

Climate Change        16   C3   Inadequate preparation and planning for the risks to the social,            Director of      Cabinet Member for
Adaptation and                  economic and environmental well being of community from climate             Environment      Economy,
Mitigation                      impacts, if reduction and stabilisation of greenhouse gas emissions         and Regulation   Environment and
                                is not achieved.                                                                             Climate Change

                                Failure to prepare for and adapt to climate change already
                                occurring, resulting in wasted investment, costs of emergency action
                                and retrofitting buildings with adaptation measures.

                                                               Page 7 of 12
Community cohesion    17   C3   The Council does not provide effective community leadership and         Corporate          Cabinet Member for
and engagement                  engagement opportunities, which may lead to the reduced inclusion       Director People,   Communities
                                of key sections of the community, potentially resulting in increased    Policy and Law
                                community tensions and public dissatisfaction, as well as the
                                potential for legal challenge in respect of equality and diversity
                                issues. This risk has the potential to create reputational, financial
                                and community associated implications for the Council if not
                                managed effectively.

Increase in the needs 18        Council unable to respond to increasing level of need, both the level   Service Director   Cabinet Member for
of Children and                 and complexity of need for individual children and the volume of        Children's         Children
young people.                   children with needs, exacerbated by the economic down turn and          Enhanced and
                                demographic change.                                                     Preventative

                                                            Page 8 of 12
Note: Risks 19-20 are short term (12 month duration)
Capacity to respond 19          C3     Inability to source funding required to invest in capital             Corporate     Cabinet Member for
and invest in                          infrastructure, such as Cambridge Southern link road and the          Director      Finance, Property,
changed economic                       Guided Busway, due to the changes in the economic climate             Finance,      Performance,
circumstances                                                                                                Property &    People, Policy and
                                                                                                             Performance   Law
Organisational        20               CThe need to manage change to organisational structure effectively    Chief         Leader of the
Change                                 2and to carry through the cultural change necessary to deliver a      Executive     Council
                                        ‘One Team’ ethos and to ensure effective service delivery during
                                        change. Failure to deal with ongoing implications post
                                        implementation results in impaired organisational performance with
                                        reduced quality of service delivery, user satisfaction and lack of
                                        measures to judge Service against.

                                                                 Page 9 of 12
                                                                                                      Appendix 2


      Very High
         High                                             9, 12
      Moderate                                        3, 5, 7, 8, 11, 1, 2, 4, 6, 15,
                                                      13, 16, 17, 19        20
         Low                                               18                    10
      Very Low                                                                   14
                     Negligible   Marginal             Significant            Critical         Catastrophic
                         5           4                      3                    2                   1

                                                                  Note: Shaded area denotes corporate risk appetite

                                      Page 10 of 12
Definition Tables

Description                                                                       Descriptor    Scale
May only occur in exceptional circumstances, highly unlikely                      Very Low      E
Is unlikely to occur in normal circumstances, but could occur at some time        Low           D
Likely to occur in some circumstances or at some time                             Moderate      C
Is likely to occur at some time in normal circumstances                           High          B
Is highly likely to occur at some time in normal circumstances                    Very High     A


Description                                                                       Descriptor    Scale
Insignificant disruption to internal business or corporate objectives             Negligible    5
Little or no loss of front line service
No environmental impact
No reputational impact
Low financial loss <£100k
Minor disruption to internal business or corporate objectives                     Marginal      4
Minor disruption to front line service
Minor environmental impact
Minor reputational impact
Moderate financial loss >£100k <£500k
Noticeable disruption to internal business and corporate objectives               Significant   3
Moderate direct effect on front line services
Moderate damage to environment
Extensive reputational impact due to press coverage
Regulatory criticism
High financial impact >£500k < £1m

                                                                  Page 11 of 12
Description                                                                        Descriptor     Scale
Major disruption to corporate objectives or front line services                    Critical       2
High reputational impact – national press and TV coverage
Major detriment to environment
Minor regulatory enforcement
Major financial impact >£1m <£2.5m
Critical long term disruption to corporate objectives and front line services      Catastrophic   1
Critical reputational impact
Regulatory intervention by Central Govt.
Significant damage to environment
Huge financial impact >£2.5m

                                                                   Page 12 of 12

Shared By: