Subject:

Subject:		Strategic Risk Focus Report: SR35; SR36; SR23 and SR21
Date of Meeting:		27 October 2020
Report of:		Executive Lead Officer, Strategy, Governance & Law
Contact Officer:	Name:	Jackie Algar	Tel:	01273 291273
	Email:	Jackie.algar@brighton-hove.gov.uk
Ward(s) affected:		All

FOR GENERAL RELEASE

1. PURPOSE OF REPORT AND POLICY CONTEXT

1.1 To report to the Audit & Standards Committee on the latest quarterly update to the city council’s Strategic Risk Register (SRR).

1.2 The Committee has agreed to focus on at least two strategic risks at each of their meetings. For this meeting there are four strategic risks to receive focus and to better enable Members’ questions to be responded to there will be attendance by Risk Owners in relation to:

SR35 Unable to manage serious risks and opportunities resulting from the impact of Brexit on the local and regional society and economy;

SR36 Not taking all actions required to address climate and ecological change, and making our city carbon neutral by 2030;

SR23 Unable to develop an effective Regeneration and Investment Strategy for the Seafront and ensure effective maintenance of seafront infrastructure; and

SR21 Unable to manage housing pressures and deliver new housing supply.

1.3 The Risk Owners who will be in attendance are the Executive Lead Officer for SR35; the Executive Director, Economy, Environment and Culture for both SR36 and SR23; and the Interim Executive Director, Housing, Neighbourhoods & Communities for SR21.

2. RECOMMENDATIONS:

2.1 That the Audit & Standards Committee note the SRR detailed within Table 1 of this report.

2.2 That the Committee note Appendix 1 the CAMMS Risk report with details of the Strategic Risks and actions taken (‘Existing Controls’) and those planned.

2.3 That the Committee note that there are opportunities for Members, or any staff, to raise issues on Strategic Risks at various points and levels. The process is set out in the amended Appendix 2 which also provides a guide on the risk management process and how Members might want to ask questions of Risk Owners, or officers connected to the strategic risks.

2.4 That the Committee make recommendations for further action(s) to the relevant council body.

3. CONTEXT/ BACKGROUND INFORMATION

3.1 The city council’s Strategic Risks (SRs) are reviewed quarterly by the Executive Leadership Team (ELT) after comments are made by Directorate Management Teams.

3.2 The Audit & Standards Committee has a role to monitor and form an opinion on the effectiveness of risk management and internal control.

3.3 The ELT on 15^th July 2020 confirmed all 19 SRs as shown in Table 1 below. Please note that:

a) No new risks were added.

b) No risks were removed.

c) The only change to the SRs was an increased initial risk score on SR21 ‘Unable to manage housing pressures and deliver new housing supply’ due to increased uncertainty of council finances for housing as some of the funding allocation by the Department of Communities, Housing and Local Government to the city council is pending.

Table 1 shows the current 19 Strategic Risks in the highest Revised Risk order which takes account of future actions to reduce or mitigate the risks:

Risk Nos.

Risk Title

Initial Risk Score Likelihood (L) x Impact (I) & Direction of Travel (DOT)

Revised Risk Score Likelihood (L) x Impact (I) & Direction of Travel (DOT)

Committee & Chair

Risk Owner

The Council is not financially sustainable

5 x 4

◄►

RED

4 x 4

◄►

RED

Policy & Resources Committee –

Cllr. Mac Cafferty

Acting Chief Finance Officer

Not taking all actions required to address climate and ecological change, and making our city carbon neutral by 2030

5 x 4

◄►

RED

4 x 4

◄►

RED

Environment, Transport & Sustainability Committee – Cllr. Heley

Executive Director, Economy, Environment & Culture

Failure to achieve Health and Social Care outcomes due to organisational and resource pressures on the Clinical Commissioning Group (CCG) and Brighton & Hove City Council (BHCC)

5 x 4

◄►

RED

4 x 4

◄►

RED

Health & Wellbeing Board – Cllr. Shanks

Executive Director, Health & Adult Social Care

Not providing adequate accommodation and support for people with significant and complex needs

4 x 4

◄►

RED

3 x 4

◄►

AMBER

Health & Wellbeing Board – Cllr. Shanks

and

Housing Committee – Cllr. Gibson and Cllr. Hugh-Jones

Executive Director, Health & Adult Social Care

Not effectively responding to COVID-19 in Brighton and Hove

4 x 4

◄►

RED

3 x 4

◄►

AMBER

Health & Wellbeing Board – Cllr. Shanks

and

Housing Committee – Cllr. Gibson and Cllr. Hugh-Jones

Executive Director, Health & Adult Social Care

Challenges to ensure health & safety measures lead to personal injury, prosecution, financial losses and reputational damage

4 x 4

◄►

RED

3 x 4

◄►

AMBER

Policy & Resources Committee –

Cllr. Mac Cafferty

Assistant Director Human Resources & Organisational Development

Unable to manage serious risks and opportunities resulting from the impact of Brexit on the local and regional society and economy

5 x 4

◄►

RED

4 x 3

◄►

AMBER

Policy & Resources Committee –

Cllr. Mac Cafferty

Executive Lead Officer, Strategy, Governance & Law

The organisation is unable to deliver its functions in a modern, efficient way due to the lack of appropriate technology

4 x 4

◄►

RED

3 x 4

◄►

AMBER

Policy & Resources Committee –

Cllr. Mac Cafferty

Assistant Director, Human Resources & Organisational Development

Difficulty in restoring trust and confidence in the home to school transport service and sourcing sufficient capacity to resolve issues raised by the independent review

4 x 4

◄►

RED

3 x 4

◄►

AMBER

Children, Young People & Skills Committee –

Cllr. Clare

Acting Executive Director Families, Children & Learning

The lack of organisational capacity leads to sub-optimal service outcomes, failure to meet statutory obligations, and reputational damage

4 x 4

◄►

RED

3 x 4

◄►

AMBER

Policy & Resources Committee –

Cllr. Mac Cafferty

Assistant Director Human Resources & Organisational Development

Not keeping Vulnerable Adults Safe from harm and abuse

4 x 4

◄►

RED

3 x 4

◄►

AMBER

Health & Wellbeing Board – Cllr. Shanks

Executive Director, Health & Adult Social Care

Not keeping Children Safe from harm and abuse

4 x 4

◄►

RED

3 x 4

◄►

AMBER

Children, Young People & Skills Committee –

Cllr. Clare

Acting Executive Director Families, Children & Learning

Unable to manage housing pressures and deliver new housing supply

4 x 4

RED

3 x 3

◄►

AMBER

Housing Committee –

Cllr. Gibson and Cllr. Hugh-Jones

Interim Executive Director, Housing, Neighbourhoods & Communities

Corporate Information Assets are inadequately controlled and vulnerable to cyber attack

4 x 4

◄►

RED

4 x 3

◄►

AMBER

Policy & Resources Committee –

Cllr. Mac Cafferty

Chief Executive

The needs and demands for services arising from the changing and evolving landscape of Welfare Reform is not effectively supported by the council

4 x 3

◄►

AMBER

3 x 3

◄►

AMBER

Policy & Resources Committee –

Cllr. Mac Cafferty

Acting Chief Finance Officer

Unable to develop and deliver an effective Regeneration and Investment Strategy for the Seafront and ensure effective maintenance of the seafront infrastructure

3 x 4

◄►

AMBER

3 x 3

◄►

AMBER

Environment, Transport & Sustainability Committee –

Cllr. Heley;

and

Tourism, Equalities, Communities & Culture Committee –

Cllr. Ebel and Cllr. Powell

Executive Director, Economy, Environment & Culture

Ineffective contract performance management leads to sub-optimal service outcomes, financial irregularity and losses, and reputational damage

3 x 4

◄►

AMBER

3 x 3

◄►

AMBER

Policy & Resources Committee –

Cllr. Mac Cafferty

Acting Chief Finance Officer

Not fulfilling the expectations of residents, businesses, government and the wider community that Brighton & Hove City Council will lead the city well and be stronger in an uncertain environment

3 x 4

◄►

AMBER

2 x 4

◄►

AMBER

Policy & Resources Committee –

Cllr. Mac Cafferty

Chief Executive

Ambitions to improve offer for staff which have been stated in Our People Promise may not be realised

3 x 4

◄►

AMBER

2 x 3

◄►

YELLOW

Policy & Resources Committee –

Cllr. Mac Cafferty

Assistant Director Human Resources & Organisational Development

4. ANALYSIS & CONSIDERATION OF ANY ALTERNATIVE OPTIONS

4.1 Through consultation with ELT the Risk Management process currently in operation was deemed to be the most suitable model.

5. COMMUNITY ENGAGEMENT & CONSULTATION

5.1 This is an internal risk reporting process and as such no engagement or consultation has been undertaken in this regard.

6. CONCLUSION

6.1 The council must ensure that it manages its risks and meets it responsibilities and delivers its Corporate Plan, risk management is evidence for good governance.

7. FINANCIAL & OTHER IMPLICATIONS:

Financial Implications:

7.1 For each Strategic Risk there is detail of the actions already in place (‘Existing Controls’) or work to be done as part of business or project plans (‘Risk Actions’) to address the strategic risk.

Potentially there may have significant financial implications for the authority either directly or indirectly. The associated financial risks are considered during the Targeted Budget Management process and the development of the Medium Term Financial Strategy.

Finance Officer Consulted: James Hengeveld Date: 02/10/20

Legal Implications:

7.2 All or any of the Strategic Risks which are reported to the Audit & Standards Committee may potentially have legal implications. Where those implications are of a direct nature, they may be noted in the Appendices to this Report.

Lawyer Consulted: Victoria Simpson Date 01/10/20

Equalities Implications:

7.3 The SRR is shared with the Equalities Team. It is a corporate requirement that equalities implications are included within the performance management framework which includes risk management. There is an expectation that data will be used to evidence how service improvements are being made which have the aim of reducing inequalities.

Sustainability Implications:

7.4 Sustainability will be improved by practicing risk management.

Brexit Implications:

7.5 SR35 specifically considers this risk and actions which have taken place or are planned.

Any Other Significant Implications:

7.6 None.

SUPPORTING DOCUMENTATION

Appendices:

1. CAMMS Risk report on SR35, SR36, SR23 and SR21.

2. A guide on the risk management process and how Members might want to ask questions of Risk Owners.

Background Documents

1. None.