Consideration was given to the report of the Corporate Programme, Risk and Improvement Manager that provided a position update on Risk Management processes and the key strategic risks currently facing the Council.  It was essential that the Council adopted a strong approach to Risk Management to ensure good governance, especially given the current backdrop of significant financial pressures.

The new Risk Management Policy was approved by the Audit and Standards Committee in September 2022 and reviewed on an annual basis and the risk appetite statements within it revisited and amended each year (where appropriate) to ensure that they continued to meet the Council’s requirements.

The Senior Leadership Team (SLT) had reviewed the Policy and recommended an amendment to a risk appetite (target) score and associated risk appetite statement as detailed in the report, as well as a change in responsibility of the Risk Management Coordinator from the Audit Manager to the Corporate Programme, Risk and Improvement Manager.

The Corporate Risk Register (CRR), attached at Appendix A to the report, had also been reviewed and updated by the Corporate Management Team (CMT).  No changes to the format of the risk register had been made. Several existing risks had been amended as stated on the register and these were detailed in the report. Two new risks had been added to the register at numbers 17 and 18. Both these risks concerned partner organisations.

Service Plans had recently been introduced, which required all Heads of Service / Service Managers to record and monitor their operational risks in a risk register. The Service based risks were reviewed by the SLT and formed part of the new draft Performance Framework and would be monitored at the new Performance Boards, which Boards met quarterly to monitor all aspects of performance with a particular emphasis on risk.

Members had the opportunity to ask questions and the following points were noted during the discussions:

•     Members recommended and agreed that the Senior Leadership Team (SLT) be requested to review Risk 12 (Environmental / Climate Change), to take into account information from the Environment Agency’s work on sea defences and that contained within the Rye resilience programme;

•     Members recommended and agreed that SLT be requested to review Risk 2 (Social) and consider splitting the risk into three separate areas: Temporary Accommodation, Affordable Housing and Housing List Reduction;

•     the five-year housing land supply needed to be disassociated from Risk 2 as this was a planning issue;

•     Risk 14 (Partnership / Contractual) needed to be considered in more depth to ascertain the detailed impact of the failure of a neighbouring authority or other partner and would be taken to the CMT;

•     the Corporate Risk Register had become a much more dynamic and live document;

•     the Council’s Monitoring Officer would also be consulted on Risk 18 (Legal / Compliance and Partnership); and

•     Members recommended and agreed that SLT be requested to consider expanding Risk 4 (Economic / Financial) to include the Capital Programme, as all Capital Projects were being reviewed to ascertain their viability.

RECOMMENDED: That the updated Risk Management Policy be approved and adopted;

AND

RESOLVED: That:

1)   the Corporate Risk Register be noted; and

2)   the Senior Leadership Team be requested to give consideration to separating Risk 2 (Social) into the three areas of Temporary Accommodation, Affordable Housing and Housing List Reduction, expanding Risk 4 (Economic / Financial) to include the Capital Programme and reviewing Risk 12 (Environmental / Climate Change).

(Councillor Thomas declared a personal interest in this matter as Chair of Rother DC Housing Company Ltd, and in accordance with the Members’ Code of Conduct remained in the room during the consideration thereof).