Audit & Standards Committee
Agenda Item 36
Subject: Risk Management Framework
Date of meeting: 24th January 2023
Report of: Executive Director, Governance, People and Resources
Contact Officer: Name: Rima Desai, Luke Hamblin
Tel: 01273 291268, 01273 291496
Email: rima.desai@brighton-hove.gov.uk, luke.hamblin@brighton-hove.gov.uk
Ward(s) affected: All
1.1 This report provides committee with an oversight of the Brighton & Hove City Council’s current Risk Management Framework with a view to seeking their approval.
2.1 That the committee approves the Risk Management Framework as set out in Appendix 1.
2.2 That the committee notes the current strategic risks and committees they are reported to as set out in Appendix 2.
2.3 That the committee notes that internal audit of risk management conducted in 2022/23 provided ‘Substantial Assurance’. This opinion means that controls are in place and are operating as expected to manage key risks to the achievement of system or service objectives.
3.1 Risk management is part of the Performance Management Framework.
Best Value Authorities are under a general Duty of Best Value to “make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness.”
3.2 Risk management is integral to corporate governance
Corporate governance is about doing the right things in the right way. It's about demonstrating accountability and transparency in our actions and decisions, and is everyone's responsibility.
· Establishing and following robust systems and processes
· Demonstrating effective leadership and high standards of behaviour
· Creating a culture based on openness and transparency
· Keeping our focus on the needs of service users and the public
Corporate Governance:
· Helps the council avoid costly mistakes and keeps the council safe
· Protects the council’s reputation
· Assists effective decision making and prioritises deployment of resources
3.3 The responsibilities of the Audit & Standards Committee in the Council’s Constitution include considering the effectiveness of the council’s arrangements for the management of risk required by regulation 3(c) of the Accounts and Audit Regulations 2015
3.4 An audit of risk management was conducted in summer 2022. The purpose of the audit was to provide assurance that controls are in place to meet the following objectives. The outcome of this audit was ‘substantial assurance’.
· The Council has in place a robust Risk Management Framework which facilitates the effective identification, assessment and response (where appropriate) to risks.
· Management ensure that risks are subject to appropriate identification, assessment and response (where appropriate) in accordance with the organisation’s Risk Management Framework.
· Effective mitigations are in place to minimise the impact and / or likelihood of occurrence of the risks identified.
· Robust reporting arrangements are in place to allow for effective senior officer and Member oversight.
4.1 A CIPFA review conducted in July 2021 confirmed that our risk management was appropriate. Suggestions for improvement were included in the review which the council is in the process of implementing.
5.1 This is an internal matter to comply with legislation and as such no engagement or consultation has been undertaken in this regard.
6.1 The council believes it has a robust Risk Management Framework as evidenced by this report to meet the challenges of delivering services in the financial context that local authorities are working in.
7.1 The Risk Management Framework detailed in Appendix 1 will help the authority to safeguard its public finances. There are no financial implications in the report’s recommendations
Name of finance officer consulted: Peter Francis Date consulted: 29/11/2022
8.1 The Council has delegated to the Audit & Standards Committee responsibility for carrying out independent scrutiny of the Council’s processes, procedures and practices to the extent that they affect the Councils control environment and exposure to risk. This Committee is the correct body for reviewing the Council’s risk management framework, having been delegated the task of providing reassurance on the adequacy and effectiveness of that framework.
8.2 All corporate Strategic Risks potentially have legal implications. Strategic Risk details are reported to relevant service committees; these include reference to key implications.
Name of lawyer consulted: Victoria Simpson Date consulted: 01/12/22
9.1 Risk Owners are requested to ensure that equalities implications are considered in describing strategic risks, their potential consequences and when developing mitigating actions.
9.2 SR25 has a key focus on equalities through the Our People Promise strategy, specifically through the Fair and Inclusive Action Plan and the Corporate and Directorate Equalities Delivery Groups.
10.1 Risk owners are requested to consider sustainability implications, and this will continue to be part of regular ELT and DMT risk review sessions.
10.2 SR36 has a key focus on sustainability through the Carbon Neutral modernisation programme. In addition, any sustainability implications of a direct nature are normally referenced within the risk description of any relevant strategic risks.
Supporting Documentation
1. Appendix 1: Risk Management Framework
2. Appendix 2: Strategic Risk List
1. None