Agenda item

(a)       That the corporate approach to risk management be endorsed; and

(b)       That Members gained assurance from the business continuity arrangements in place.

The Policy, Performance & Partnerships Manager introduced a report on the corporate management of risk and to assure Members of the arrangements in place for business continuity.

She advised that the updated Risk Management Strategy would be presented to the Committee in September 2012 and gave information on the recent Risk Maturity review.  A copy of the draft Strategic Assessment of Risk and Challenges (SARC) showing Red, Amber, Green (RAG) status was shared and it was noted that this was currently being updated for 2011/12 with copies to be made available in Members’ rooms.  An update on business continuity referred to the testing of plans on severe winter weather, localised flooding and industrial action, resulting in lessons learned.

Following a question by the Chair, the Policy, Performance & Partnerships Manager gave details on the ‘Coldfeet’ exercise on the Council’s response to the severe winter weather conditions to ensure no disruption to key services.

Councillor I.B. Roberts expressed concerns about the number of ‘Amber’ risk levels shown on the SARC document, suggesting that these would be better displayed as Amber to Green or Amber to Red to demonstrate whether the issue was showing improvement or not.  He also said that a number of Amber levels which were not expected to turn to Green for some time would be better categorised as Red.

The Chief Executive said that on the testing of plans for business continuity on flooding, whilst the Council’s response had been good, a need for improved communication had been identified which also reflected on partner organisations.  Responding to comments on the SARC, he disagreed that Amber levels were being used as a “safe option” under the Improvement Priorities on a twin RAG status - against the current position and confidence in achieving the outcome – was being used.  For example, issues such as affordable housing and social care for older people would remain Amber due to the changing demographic pressures over and above our Council performance.

Councillor R.B. Jones pointed out that predictions on RAG status provided some assurance that an action plan was in place and also said that Improvement Priorities were regularly considered in detail by the Corporate Resources Overview & Scrutiny Committee.  He remarked that the SARC document did not indicate any evidence of document control with issue date, which was noted, and questioned how items could be put on the SARC  On business continuity, he stressed the importance of preparing action plans and the impact on other issues if these were not followed.

The Policy, Performance & Partnerships Manager said that the process of SARC RAG status had taken some time to reach a consistent view and that each risk had a detailed action plan which was reviewed quarterly via performance reports and documented twice a year.  The Amber level was a live status reflecting the current position and likelihood of achieving Green or Red and all risks were driven through the service planning process and included in Directorate Plans.  She advised that progress on the Risk Management Strategy had been made with confidence in achieving outcomes and suggested a possible review on this could take place at a later date.

Councillor G.S. Banks asked if a sliding 1-5 scale could be used instead of RAG.  Councillor Roberts referred to the previous ratings for waste management and Streetscene, suggesting that a 4 point scale may be better in omitting the middle ‘Amber’ position.  Councillor Jones displayed a risk analysis matrix which he said was used extensively in the private sector and demonstrated that RAG was the accepted standard of measuring risk.

Mr. J. Herniman of WAO said that RAG was the accepted principle and that the background to the RAG status may give confidence on actions.  Ms. Hughes mentioned that some other Councils used up or down arrows to indicate movement of issues since the previous quarter.

The Chief Executive said that the RAG status system could be refined.  In response to comments on business continuity, he explained differences in command and response between national, regional or localised emergencies. 

RESOLVED:

(a)       That the corporate approach to risk management be endorsed; and

(b)       That Members gained assurance from the business continuity arrangements in place.