PART ONE
ITEM NO.8
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REPORT OF THE CITY TREASURER
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TO THE: AUDIT & ACCOUNTS COMMITTEE
ON: Wednesday 28th April 2010
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TITLE: STRATEGIC RISK REGISTER PROGRESS REPORT Q4
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RECOMMENDATION:
Members are requested to consider the contents of the report.
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EXECUTIVE SUMMARY: The purpose of this report is to inform Members of
progress on the Strategic Risk Register and to note the new revised format and the
next steps for risk reporting.
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BACKGROUND DOCUMENTS:
(Available for public inspection)
 Institute of Risk Management (IRM) / Association of Insurers & Risk
Managers (AIRMIC) /Association of Local Authority Risk Managers (ALARM)
produced A Risk Management Standard.
 Risk Management Strategy.
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KEY DECISION:
NO
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DETAILS:
See report attached.
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KEY COUNCIL POLICIES: N/A
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EQUALITY IMPACT ASSESSMENT AND IMPLICATIONS: N/A
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ASSESSMENT OF RISK:
1
Risk management activities undertaken throughout the Council ensure that risks
are effectively identified and appropriately managed.
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SOURCE OF FUNDING: Existing revenue budget.
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LEGAL IMPLICATIONS: N/A
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FINANCIAL IMPLICATIONS:
The production of this report has no financial Implications.
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OTHER DIRECTORATES CONSULTED: N/A
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CONTACT OFFICER: Cliff Peacock
TEL. NO. 0161 793 3239
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WARD(S) TO WHICH REPORT RELATE(S): N/A
2
1
Background
Risk Management is a key component of local authorities’ corporate
governance arrangements. It is essentially the systematic process by
which key business risks / opportunities are identified, prioritised and
controlled so as to ensure the achievement of council objectives and
commitments.
The purpose of this report is to inform Members of the Audit & Accounts
Committee (AAC) of progress on the Strategic Risk Register on key
strategic risks within the register in the new revised format and the next
steps for risk reporting.
2
Risk Management update and next steps
Following discussions with Corporate Management Team (CMT) in
January 2010 and recent discussions with One Council Management
Team (OCMT) it was agreed that the approach to risk reporting and
governance be improved.
The launch of Covalent, the Council’s new Performance Management
System (PMS) this month will, when fully adopted, help embed risk
management further and will assist the Council in having a more
enterprised risk management approach and further enhance future
reporting.
Directorate Risk Registers form an integral part of the current business
planning arrangements. Risk reporting at all levels e.g. Directorate
Business Planning and reporting of Directorate risks for both Strategic and
Directorate Risk will in future be to the Lead Member responsible for a
particular area via regular scheduled reports following the issue of a new
reporting timetable for 2010-11.
Draft reports on strategic risk going forward will go via OCMT on a
quarterly timetable to allow for timely updates prior to reporting to the
appropriate lead member and the Audit & Accounts Committee, with the
new format helping to avoid risk reporting overload. Future updates to
CMT would be on a six monthly basis. The Portfolio Management Board
would also have a key role to play in monitoring key strategic risks and will
continue to examine in detail key areas of risk across our major capital
programmes.
The Corporate Plan is currently being brought up to date and the
information in the risk management section is to be rewritten to promote
the work done on strategic risk and business planning in relation to risk.
The current risks / opportunities and the Risk Management Action Plans
that were recently updated in February 2010 and endorsed by CMT in mid
-March are summarised in the attached appendix and are listed with the
highest risk score first.
3
Appendix
CMT – Strategic Risk Register
Identified risk
Risk score
Latest actions to mitigate risks
Risk owner
Direction of travel
Area of risk identified for the
service
Previous
risk
score
Current
risk
score
Description
(Detailed reports on progress are available on request via the responsible officer )
Officer
responsible for
risk

SSR12. SALIX HOMES BUSINESS
PERFORMANCE & PLANNING.
Scope of Risk : Salix Homes fails to
achieve 2 stars in its Audit Commission
inspection and is not able to draw down
£69m of decent homes funding
16
High
4
Low
SRR14. SAFEGAURDING.
Scope of Risk: Practice in safeguarding
children may develop with insufficient pace
or sustainability.
16
High
16
High
Salix Homes has achieved a 2 star / Excellent Prospects for Improvement judgement
from the Audit Commission for its ALMO inspection. This excellent result now enables it
to access Government decent homes funding to improve the quality of Council stock in
Central Salford.
 The Council has also been successful in lobbying Government to re-profile the decent
homes expenditure that had originally been delayed until 2011. £9m has now been
secured for immediate use in 2010/11 to improve tenant’s homes.
 The Council, as part of its budget planning for 2010/11 has generated efficiencies by
keeping the Salix Homes management fee at 2009/10 levels but has sought to increase
the repairs budget by £0.5m for 2010/11. This will help to prevent further homes
becoming non-decent.
1. Regular performance management of outcomes carried out.
2. Performance Management reporting in Safeguarding is well established via the “Report
Card”
3.Monitoring of progress and challenge carried out regularly both internally and by
Government Office
4. Programme and project management resources and discipline dedicated to improvement
planning and implementation particularly in relation to planning that flows from the Ofsted
inspection.

The Safeguarding Improvement Programme has been refined to concentrate on the
development of localities and integrated working in order to improve quality and
effectiveness of work.
1
Rob Pickering
reporting to
Strategic Director
Paul Walker
report to
Portfolio Holder
Cllr Connor
John Stonehouse
reporting to
Acting Strategic
Director Nick Page
report to
Portfolio Holder Cllr
Warmisharm
Identified risk
Risk score
Latest actions to mitigate risks
Risk owner
Direction of travel
Area of risk identified for the
service
Previous
risk
score
Current
risk
score
Description
(Detailed reports on progress are available on request via the responsible officer )

SRR7. BUSINESS CONTINUITY
ARRANGMENTS/
EMERGENCY PLANNING
12
High
9
Medium
Following recent adverse weather (January 2010) where existing emergency and
business continuity plans were robustly tested, a comprehensive review of present
arrangements has been requested by the Leadership in consultation with Scrutiny
Chairs.
This review will examine thoroughly all elements of the Council’s Plans including
Corporate and Directorate arrangements and it is intended that following the review
clear plans for improvement will be developed.

Scope of risk : Failure to recover after
major incident.

Agreed recruitment strategy to support Directors to make efficient appointments of
staff.
Organisational Change policy introduced to support major structural reviews e.g.
Think Efficiency and financial impact.
Developed range of training course and programmes, complemented by e-learning to
help achieve both personal and business objectives to support competency
framework.
Attendance management policy continues to be applied.
Application of the Workforce development strategy will ensure critical staffing issues
are addressed.

9
9
Medium
Medium





SRR5. PARTNERSHIP FAILURE.
Scope of risk : Impact of increased
partnership working across the City
Alan Westwood
Portfolio Holder
Cllr Hinds
The review is expected to be concluded in April 2010.
Develop and maintain best practice HR policies i.e. :-
SSR1. WORKFORCE MANAGEMENT
Scope of Risk: impact of ineffective
workforce planning and management can
lead to poor employee relations; recruitment
and retention problems, particularly in
known skill shortage areas; morale and
motivation issues that can impact on
performance e.g. increased sickness
absence, conduct, capability, grievance
cases. An inadequately skilled and
inadequately diverse workforce can lead to
poor service delivery.
Officer
responsible for
risk
9
Medium
9
Medium

Council’s Portfolio Management Board has agreed that the focus for the Council
should be on our major partnerships including the likes of Urban Vision, Salix Homes
and the Primary Care Trust.
Resource is in place through the Sustainable Regeneration Directorate to support the
Portfolio Board in fully implementing the Council’s Partnership Database which holds
all necessary strategic and risk related information on our major partnerships. This
information will be reviewed at the Portfolio Board on a quarterly basis.
A review of Urban Vision partnership governance is almost complete and will be
considered by the Strategic Director for Sustainable Regeneration in the first instance
and subsequently by the Council’s Portfolio Board and Lead Members. This will be
repeated in 2010/11 for other major partnerships.
2
Debbie Brown
Reporting to
Strategic Director A.
Westwood
Portfolio Holder
Cllr Hinds
Rob Pickering
reporting to
Strategic Director
A.Westwood
Portfolio Holder
Cllr Connor
Identified risk
Risk score
Latest actions to mitigate risks
Risk owner
Direction of travel
Area of risk identified for the
service
Previous
risk
score
Current
risk
score
Description
(Detailed reports on progress are available on request via the responsible officer )

SRR15. MEDIA CITY – PUBLIC SECTOR
DELIVERY.
Scope of Risk: Wider Economic
Downturn, International Flights, Public
Sector Partnership Approach to Funding,
Change of National Government, National
Focus on Olympics, Regional Competition
for Inward Investment & MEC Delivery.

9
9
Medium
Medium


SRR10.FINANCIAL STRATEGY
incorporating Think Efficiency
Scope of Risk: failure to maintain
adequate funding to deliver services.

8
8
Medium
Medium


Monthly PSP Highlight reports to PSP Programme Board which update on progress,
and risks and issues across the programme.
The PSP programme team also regularly reports progress to, and attends, both SCC
Portfolio Management Board and the Media City UK (MCUK) Team Salford meetings.
These are used to ensure that developments at MCUK are effectively communicated
within SCC, that input and direction is obtain from SCC Management, and that risks
and issues can be reported and managed effectively
Potential gaps with Peel Media’s business development messages has been raised
internally as an issue, and action is being taken to address this with Peel Media and
our other public sector partners at Chief Executive Level
Medium-term financial strategy has been updated for 2008/9 to 2010/11 and
approved by Budget & Efficiency Cabinet Working Group (B&EG) i.e. ensures
corporate priorities, service planning, performance management and financial
planning are aligned.
Regular reports are made to B&EG to review alignment of financial and service
planning for 2010/11, set parameters for determining further efficiencies and refining
financial strategy.
The Think Efficiency implementation plan defines the efficiency targets for each
workstream and the actions required to deliver them. The Think Efficiency
programme will enter its third year in 2010/11 and has been extended to incorporate
a second phase of 6 additional workstreams.
Progress is monitored via OCMT, CMT, B&EG and Budget Scrutiny Cttee.
3
Officer
responsible for
risk
Strategic Director
Alan Westwood
Portfolio Holder
Cllr Merry
John Spink
reporting to
Strategic Director A.
Westwood
Portfolio Holder
Cllr Hinds
Identified risk
Risk score
Latest actions to mitigate risks
Risk owner
Direction of travel
Area of risk identified for the
service
Previous
risk
score
Current
risk
score
Description
(Detailed reports on progress are available on request via the responsible officer )

SRR11. RECESSION IMPACT.
Scope of Risk: Failure to effectively
manage the recession may detrimentally
affect the citizens, economy and prosperity
of Salford.

6
6
Medium
Medium


SRR13. PARTNERSHIP DELIVERY

Scope of Risk: The City’s Local Area
Agreement and CAA assessment have
identified several areas of vulnerability at
Area wide and organisational level in terms
of performance. If anticipated outcomes are
not achieved there will be a significant
reputational risk for the City Council.

6
Medium
6
Medium
Salford Recession Task Group established to give focus and coordinated action to
measures to alleviate the impact of the recession across the City. Chaired by
Strategic Director for Sustainable Regeneration.
The Council’s Recession Task Group has implemented actions contained within the
Partners Priorities Plan to mitigate the impact of the Recession on the people and
businesses in Salford.
A new website has been very successful in providing information to people and
businesses across the City on a variety of financial and service issues that relate to
the Recession.
The focus of the Recession Task Group is now, whilst retaining a monitoring and
tracking role across the City, turning to how Salford can prepare for the recovery and
best position itself for coming out of the Recession. To this end a ‘state of the nation’
report was commissioned by the City and completed by the Commission for the New
Economy which assessed Salford’s position in a local, sub-regional and national
context (copy attached).
Risk assessment has been provided by Audit Commission (January 2010) which has
highlighted critical areas for examination during 2010. These include; Progress
towards decent homes standard, Safeguarding Children’s improvement plan
(Highlighted elsewhere within the SRR) and also key areas such as Crime, Equalities
and Cohesion and Tackling Health Inequalities.
Current action taken includes consultation with Salford Partnership Executive and
Total Place Board (January 2010) which has initiated a further round of challenge
sessions in all target areas to robustly challenge current performance and
improvement planning (February to March 2010)
4
Officer
responsible for
risk
Rob Pickering
reporting to
Strategic Director
Paul walker
Portfolio Holder
Cllr Hinds
Martin Vickers
reporting to
Portfolio Holder
Leader of the
Council