PRMB – February 2016
Draft Corporate Risk Register February 2016
Summary Register
Ref.
Current
Score
Target
Score
Medium Term Financial Plan
015(CR)
20
12
Karen Sly - Head of Finance
Coastal Erosion - (the effects of)
002(CR)
20
12
Rob Goodliffe - Coastal Management Team Leader
Transformation Agenda/Business Transformation Work
003(CR)
16
8
Sheila Oxtoby - Chief Executive
Property assets (the condition of)/ Asset Management
001(CR)
12
9
Duncan Ellis - Head of Assets & Leisure
Procurement - (lack of value for money)
009(CR)
9
3
Karen Sly - Head of Finance
Information - (loss of)
008(CR)
8
4
Sean Kelly - Head of Business Transformation and IT
Housing Delivery
010(CR)
6
6
Nicola Turner - Strategic Housing Team Leader
Operational disruption - (significant event)
013(CR)
6
6
Richard Cook - Civil Contingencies Manager, Steve
Hems - Head of Environmental Health
Homeworking - security, staff health and safety
019(CR)
6
6
Sean Kelly - Head of Business Transformation and IT
Disclosure and Barring Checks (DBS) for staff
020(CR)
6
4
Julie Cooke - Head of Organisational Development
Risk
Officer
Proposal to remove Individual Electoral Registration causing potential disenfranchisement 021(CR) from the Corporate Risk Register as there is no
longer a risk of IER failing.
Potential New Risks
Recruitment (inability)
Ref.
Current
Score
Target
Score
Officer
Julie Cooke - Head of Organisational Development
1
PRMB – February 2016
Draft Corporate Risk Register February 2016
KEY
Impact Type
Objectives
Financial
Impact (Loss)
Likelihood
Catastrophic - 5
The key objectives in the
Corporate Plan will not be
achieved.
Critical - 4
One or more Key Objectives
in the Corporate Plan will not
be achieved.
Moderate - 3
Significant impact on the
success of the Corporate
Plan.
Marginal - 2
Some impact on more than
one Service.
Negligible - 1
Insignificant impact on more
than one Service.
Over £1m
£400K - £1m
£200K - £400K
£10K - £200K
£0-10K
Very High - 5
High - 4
Moderate - 3
Low - 2
Very Low - 1
Probability
Over 90%
60 - 90%
40 - 60%
10 - 40%
below 10%
Timing
Within six months
This year
Next year
Probably within 15 years
Probably over 15 years
2
PRMB – February 2016
Draft Corporate Risk Register February 2016
Risk
1. Cause of risk
2. Description of Risk or potential
event
3. Consequence of risk happening
Medium Term Financial Plan 015(CR)
1. Uncertainty around the Governments
spending reduction programme and the
impact on the Council’s funding. The
business rates retention system has
shifted the risk of business rates
fluctuations to the local level, meaning
that Local Authority funding will be
impacted directly from decline in
business and also planned reductions to
the revenue support grant and reliance
on New Homes Bonus funding
influenced by delivery of new homes
and reductions in long term empty
properties.
2. Failure to produce a balanced budget
position and funded future projections in
the medium term and to deliver a
freezing of Council Tax increases.
3. The Corporate Plan may not be
delivered to the identified timescales.
The level of service currently provided
could be at risk, unplanned use of
reserves which is unsustainable in the
longer term. Higher level of savings
requirement in future years.
Existing Controls
Controls that have been
implemented since the last review
are shown in green
Policy work
Lobbying Central Government
Medium Term Financial Strategy
Corporate Planning / Service
Planning
Budget Process / Budget Monitoring
Regular monitoring system of the
impact of the business rates
retention and the localised council
tax support system
Utilisation of (part of) the New
Homes Bonus grant within the base
budget from 2014/15
Annual review of the Councils
reserves
Reporting - New legislation and
consultation
Timely agreement of the annual
Localised Council Tax Support
Scheme
Score
(with
controls)
Impact x
Likelihoo
d = Total
5x4=20
Action (to achieve target
score) and progress to date
Growth forecasting models to be
developed for housing and
business rates to inform future
financial forecasts and budget. –
Some Problems - Business rates
forecasting has been informed
by the annual NNDR returns and
also outcome of appeals. Timing
of businesses coming on track to
be reviewed with Planning and
also informed by visiting officers
progress. Housing forecast
updated annual as part of the
Tax Base setting and monitoring
of the collection fund position,
monthly CTB reports for Long
term empties to be reviewed for
new property reporting also.
Target
Score
Impact x
Likelihood
= Total
4x3=12
Corporate
Objective /
Service
Priority
Officer
Delivering the
Vision
Karen Sly Head of
Finance
Early update of the Financial
Strategy to inform the 2017/18
budget process
Impact of changes to the NHB
scheme from 2017/18 to be
quantified and considered within
future budgets.
Project Management Plans
Short term budget surplus forecast
(2016/17 and 2017/18)
3
PRMB – February 2016
Draft Corporate Risk Register February 2016
Risk
1. Cause of risk
2. Description of Risk or potential
event
3. Consequence of risk happening
Existing Controls
Controls that have been
implemented since the last review
are shown in green
Coastal Erosion - (the effects of) 002(CR)
The Pathfinder Project
Shoreline Management Plan (SMP)
1. Lack of Government funding to
maintain coast defences and / or to
support local compensation claims
2. Coastal erosion and blight of coastal
settlements through loss of public and
private infrastructure and assets. The
Council has devoted significant
resources to pursuing sustainable
answers to coastal management issues.
There is a considerable Health and
Safety context here which serves to
increase the reputational risk for the
Council at the same time.
3. Increased coastal erosion through
loss of defences presents a reputational
risk to the authority in the eyes of local
communities and direct loss of Council
owned assets / infrastructure which are
fundamental to the district's tourism
offer and therefore the economic wellbeing of the district. Loss of confidence
in respect of business investment and
residential property market; blight of
properties in erosion zone; direct loss of
tourism assets and infrastructure
promenades, beach chalets, cafés,
public toilets, car parks etc.; loss of
tourism income / employment.
Repairs & Maintenance Programme
Procurement practices
Health & Safety checking and
monitoring
Score
(with
controls)
Impact x
Likelihoo
d = Total
Action (to achieve target
score) and progress to date
5x4=20
Cromer Sea Defence Works –
On Track - Works are
progressing with programmed
finish date end of March 2016
dependent on external
influences e.g. weather.
Programme risk actively
managed.
Target
Score
Impact x
Likelihood
= Total
Corporate
Objective /
Service
Priority
Officer
4x3=12
Coast,
Countryside
and Built
Heritage
Rob
Goodliffe Coastal
Manageme
nt Team
Leader
DEFRA funding of capital schemes
Coast monitoring
Control of coastal management
schemes through procurement and
regular checking
4
PRMB – February 2016
Draft Corporate Risk Register February 2016
Risk
1. Cause of risk
2. Description of Risk or potential
event
3. Consequence of risk happening
Transformation Agenda/Project 003(CR)
1. It is clear that there is a new urgency
about change in local government
driven by the current financial pressures
and the ambition to ignite community
engagement. Previous incremental
change is being replaced by a more
wholesale restructuring of local
government and its place in local
service delivery.
2. The risk is that in moving to a new
agenda so quickly there is no basic
framework within which the new
arrangements can be undertaken.
3. Vision and action may not be fully
supported by a sound assessment and
a solid understanding of policy
implications at national and local level.
Existing Controls
Controls that have been
implemented since the last review
are shown in green
Training, learning & policy initiatives
Strategies
Reporting - New legislation and
consultation
Network development
Maintain technical competence
Medium Term Financial Strategy
Approval of the Business
Transformation Programme
Appointment of a Head of Business
Transformation to deliver the
programme
Business Transformation Board
monitoring projects progress
Score
(with
controls)
Impact x
Likelihoo
d = Total
4x4=16
Action (to achieve target
score) and progress to date
IT transformation work that is
currently being undertaken –
Some Problems - Potential
imbalance between resources
and workload remains. Of
particular concern are the
recruitment difficulties relating
to highly technical positions.
Funding was approved by
Cabinet on 30 November
2015 for additional project
and technical resources to
provide access to short term
resource. However the longer
term skilled resource
availability to sustain the
business benefits delivered
by the Digital Transformation
remains to be addressed. The
Planning BPR is currently
being implemented.
Target
Score
Impact x
Likelihood
= Total
2x4=8
Corporate
Objective /
Service
Priority
Officer
Delivering the
Vision
Sheila
Oxtoby Chief
Executive
Managing delivery of
workstreams as included in
the Transformation
programme – On Track –
Overall the programme
remains broadly on track.
However, conflicting priorities
and resource demands will
have to be closely monitored
to ensure planned timelines
remain viable.
5
PRMB – February 2016
Draft Corporate Risk Register February 2016
Risk
1. Cause of risk
2. Description of Risk or potential
event
3. Consequence of risk happening
Property assets - (the condition of) 001(CR)
1. A lack of investment and sound
decision-making.
2. Deteriorating property assets may
lead to a loss of revenue and possible
legal liability.
3. The Council does not achieve value
for money from its investment and/or
possible legal liabilities either directly or
through its leasing arrangements.
This scenario is detrimental to the local
tourism economy as well as damaging
to local communities contributing to a
lack of community pride and possible
increase in vandalism. The capital tied
up in assets cannot be released to
support wider Council initiatives and
income streams are not maximised.
Existing Controls
Controls that have been
implemented since the last review
are shown in green
Work is on-going in relation to the
R&M schedules and inputting this
detail onto the Concerto system. The
schedules were used to support the
update of the Asset Management
Plan and the capital works
highlighted within the plan were
included as part of the capital budget
for 2015/16 (subject to further
businesses cases where
appropriate).
Score
(with
controls)
Impact x
Likelihoo
d = Total
4x3=12
Action (to achieve target
score) and progress to date
Managed risk
Target
Score
Impact x
Likelihood
= Total
3x3=9
Corporate
Objective /
Service
Priority
Officer
Delivering the
Vision
Duncan
Ellis –
Head of
Assets and
Leisure
Rolling asset condition surveys
continue to be undertaken to ensure
that the R&M schedules remain up to
date.
Various policies are in place to help
manage property risks and risk
assessment inspections and review
works continue to be developed and
improved and officers are currently
working on the introduction of a new
compliance contract that will further
support this area which is expected
to be in place from the summer of
2016. Regular routine inspections
take place on all of the Council’s car
parks for example to review, monitor
and help manage a number of risks
and these visits are logged on
Concerto to help provide an audit
trail..
The majority of the new posts are
now in place following the
restructure, part of which includes a
6
PRMB – February 2016
Draft Corporate Risk Register February 2016
Risk
1. Cause of risk
2. Description of Risk or potential
event
3. Consequence of risk happening
Existing Controls
Controls that have been
implemented since the last review
are shown in green
Score
(with
controls)
Impact x
Likelihoo
d = Total
Action (to achieve target
score) and progress to date
Target
Score
Impact x
Likelihood
= Total
Corporate
Objective /
Service
Priority
Officer
dedicated resource to progress the
Concerto Asset Management
system. While the Asset Strategy
Manager post remains unfilled at the
start of March 2016 interviews are
imminent and these will hopefully
result in an appointment.
The Asset Management Plan has
been updated and agreed by Cabinet
and Full Council, this contains an
improvement plan which is currently
being implemented and forms part of
the Ten performance monitoring
system.
The procurement of a Strategic Asset
Development Partner is almost
complete with the contract due to
start in April 2016. This partner will
help to provide the Property Services
team with additional skills, expertise
and capacity to help take forward
some of the current projects, the
partner will review the current asset
portfolio and help to bring additional
challenge as to why we are holding
certain assets and what we might
consider doing differently, as well as
advising on potential acquisitions.
This partner will provide a contract
for the Property team to access skills
which are not available internally,
such as architectural support,
quantity surveyors, structural
engineers and land agents etc.
7
PRMB – February 2016
Draft Corporate Risk Register February 2016
Risk
1. Cause of risk
2. Description of Risk or potential
event
3. Consequence of risk happening
Existing Controls
Controls that have been
implemented since the last review
are shown in green
Procurement - (lack of value for
money) - 009(CR)
Procurement Strategy
Procurement Framework
1. The current financial climate, recent
resourcing issues causing an absence
of a focus for this work, together with a
reduction in the available accountancy
resources going forward increase the
risk of a lack of continuous improvement
in this area.
2. Failure to adopt new procurement
practices and delivery of efficient and
timely procurement processes could
mean that the Council will not achieve
value for money procuring the goods
and services it uses.
3. The Council may not achieve value
for money, financial/procedural
inefficiencies possible challenge to
contracting procedures.
Joint procurement protocol and
opportunities for joint/shared
procurement with other authorities
where possible
Advice for external suppliers
Procurement responsibility assigned
to the Chief Accountant
Regular procurement refresh and
review of procedures
Score
(with
controls)
Impact x
Likelihoo
d = Total
3x3=9
Action (to achieve target
score) and progress to date
A procurement evaluation – On
Track - An increased awareness
of the location and use of the
Toolkit (including the Quotation
Value Path) has been
undertaken including
presentations to Management
groups and on one-to-one basis.
Target
Score
Impact x
Likelihood
= Total
3x1=3
Corporate
Objective /
Service
Priority
Officer
Delivering the
Vision
Karen Sly
– Head of
Finance
Analysis of procurement
outcomes and the value for
money achieved has started.
Note – Chief Accountant left in
May and post is yet to be filled.
Joint procurement support
options to be considered, similar
format to the Internal Audit
Consortium.
8
PRMB – February 2016
Draft Corporate Risk Register February 2016
Risk
1. Cause of risk
2. Description of Risk or potential
event
3. Consequence of risk happening
Existing Controls
Controls that have been
implemented since the last review
are shown in green
Information - (loss of) - 008(CR)
Information Management Strategy
1. Lax security - Information may be
lost, mislaid or stolen. Increased use of
mobile technology such as I Pads etc.
Implement data security protocols on
mobile devices
ICT Security Policy
2. There exists an inherent potential for
the loss of organisational information at
any security level. ICT is responsible for
ensuring electronic data is secure (in
conjunction with system owners who
control access to their databases),
3. Information may be inappropriately
used. Fraud or data corruption may
occur. Systems may suffer damage.
The Council's reputation may be
harmed.
IT Monitoring
Data Protection training
Score
(with
controls)
Impact x
Likelihoo
d = Total
4x2=8
Action (to achieve target
score) and progress to date
Interim generic information on
information security and data
protection to be shared with staff
through intranet. – On Track Has been mitigated by the
implementation of the e-learning
system which has some InfoSec
content. All posts with a
requirement for increased
awareness will be identified and
appropriate an appropriate
learning plan implemented.
Target
Score
Impact x
Likelihood
= Total
4x1=4
Corporate
Objective /
Service
Priority
Officer
Delivering the
Vision
Sean Kelly
- Head of
Business
Transform
ation and
IT
Code of Connection compliance
Regular audits of IT security
arrangements
rd
Regular 3 party data protection and
integrity testing
Information security and data
protection training - Implemented
9
PRMB – February 2016
Draft Corporate Risk Register February 2016
Risk
1. Cause of risk
2. Description of Risk or potential
event
3. Consequence of risk happening
Housing Delivery - 010(CR)
1. A combination of lack of developer
confidence because of recession / weak
financial markets and pressure on public
finances meaning reduced availability of
grant funding for affordable housing
provision.
Existing Controls
Controls that have been
implemented since the last review
are shown in green
Use of capital
Partnership work with Registered
Providers
Local Investment Plan
Score
(with
controls)
Impact x
Likelihoo
d = Total
Action (to achieve target
score) and progress to date
3x2=6
All controls are implemented and
risk is currently under control, to
be reviewed in six months.
Target
Score
Impact x
Likelihood
= Total
3x2=6
Corporate
Objective /
Service
Priority
Officer
Housing and
Infrastructure
Nicola
Turner Housing
Team
Leader Strategy
Local Development Framework
(LDF) policies
2. Inability to secure planning
permission for provision of affordable
housing.
Internal planning protocol
3. A challenge over the Council's ability
to deliver sufficient affordable homes
Housing Strategy discussion
document (2010)
Increased Focus
Enhance Housing Association
delivery
10
PRMB – February 2016
Draft Corporate Risk Register February 2016
Risk
1. Cause of risk
2. Description of Risk or potential
event
3. Consequence of risk happening
Existing Controls
Controls that have been
implemented since the last review
are shown in green
Operational disruption - (significant
event) - 013(CR)
Response & Recovery Planning
Continuity Planning
1. Both the National and Community
Risk Registers have more information
regarding the risk of specific events
(e.g. Pandemic) occurring.
2. Any Internal or external event that
has a significant impact on the ability of
the Council to deliver services.
Corporate Business Continuity key
role training
Critical Services Business Continuity
Plans completed.
Score
(with
controls)
Impact x
Likelihoo
d = Total
3x2=6
Action (to achieve target
score) and progress to date
All controls are implemented and
risk is currently under control, to
be reviewed in six months.
Target
Score
Impact x
Likelihood
= Total
3x2=6
Corporate
Objective /
Service
Priority
Officer
Delivering the
Vision
Richard
Cook Civil
Contingenc
ies
Manager,
Steve
Hems Head of
Environme
ntal Health
3. a) Loss of staff for 'usual' service
delivery
b) Loss of premises
c) Loss of key partners/suppliers
d) Loss of infrastructure services
A reduction in the ability of the Council
to deliver services, possibly at a time of
increased demand from the community.
11
PRMB – February 2016
Draft Corporate Risk Register February 2016
Risk
1. Cause of risk
2. Description of Risk or potential
event
3. Consequence of risk happening
Homeworking - security, staff health
and safety - 019(CR)
1. All aspects of remote working not
covered by corporate policies. There are
procedures in place for IT risks.
2. Security put at risk. Cost of home
working not adequately budgeted for. All
managers have a responsibility for their
staff working from home.
3. Remote staff unable to access
technology needed to do their jobs and
for business continuity.
Existing Controls
Controls that have been
implemented since the last review
are shown in green
Score
(with
controls)
Impact x
Likelihoo
d = Total
2x3=6
IT Monitoring
Action (to achieve target
score) and progress to date
Produce and implement staff
policies and procedures for
homeworking – On Track -
Agile Working document
drafted and being reviewed
by senior managers.
Target
Score
Impact x
Likelihood
= Total
Corporate
Objective /
Service
Priority
Officer
2x2=4
Delivering
the Vision
Sean Kelly
- Head of
Business
Transform
ation and
IT
A range of standard
technology solutions available
to meet the needs of
identified patterns of agile
working.
All solutions configured using
best practice and tested by
thoird party for security.
12
PRMB – February 2016
Draft Corporate Risk Register February 2016
Risk
1. Cause of risk
2. Description of Risk or potential
event
3. Consequence of risk happening
Existing Controls
Controls that have been
implemented since the last review
are shown in green
Disclosure and Barring Checks (DBS)
for staff - 020(CR)
Pre employment checklist
1. Management and HR not adhering to
set internal processes around applying/
renewing DBS checks, particularly in a
timely manner.
2. Specific jobs require pre-employment
checks and on-going (minimum every 3
years) checks to comply with the
relevant legislation where the post
holder has works with or has access to
children and vulnerable adults.
Reminder process to the service
manager.
Reporting of lack of compliance
with agreed process. The process
includes escalation to the relevant
Head of Service and to the Head of
Organisational Development if the
check is not initiated/completed
within the relevant timescales.
Score
(with
controls)
Impact x
Likelihoo
d = Total
3x2=6
Action (to achieve target
score) and progress to date
Update report – managed
risk?
Target
Score
Impact x
Likelihood
= Total
Corporate
Objective /
Service
Priority
2x2=4
Delivering
the Vision
Officer
Julie
Cooke Head of
Organisati
onal
Developme
nt
3. If checks aren't completed in a timely
way there is the risk that someone who
may be barred from working with
children/ vulnerable adults has access
to those groups through Council
activities.
13
PRMB – February 2016
Draft Corporate Risk Register February 2016
Proposed New Risks
Risk
1. Cause of risk
2. Description of Risk or potential
event
3. Consequence of risk happening
Existing Controls
Controls that have been
implemented since the last
review are shown in green
Recruitment (inability)
Reviewed relocation policy
1. Needs discussion
2. Difficulty recruiting into key posts,
particularly in Planning Services
3. Not able to recruit skills and
knowledge to deliver plans –
corporate plan, business
transformation, planning
performance and delivery etc.
Increased stress levels on existing
staff, Increased workload in HR of
repeated recruitment exercises
Score (with
controls)
Impact x
Likelihood =
Total
Action (to achieve target score)
and progress to date
Target
Score
Impact x
Likelihood
= Total
Corporate
Objective /
Service
Priority
Officer
Further reviews of the outcomes
of the amended policies.
Pay Policy has been
updated to reflect Golden
Hello’s’ and retention
payments
Julie
Cooke Head of
Organisati
onal
Developme
nt
Recommendation to remove the following from the register: - Individual Electoral Registration
14