Agenda item

Lee Colyer, the Director of Finance, Policy and Development, presented a risk management report, which described the authority’s arrangements for managing strategic risk. The report provided an update on the evaluated threat level as well as the controls in place for each of the 10 risks identified.

Mr Colyer drew attention to the decision by the Council’s Management Board to replace risk scenario 6 from ‘missing something significant (£100k - £250k impact)’ to ‘service interruption’. He added that the rationale for this change was to focus more attention on the risks associated with cyber security, terrorism and extreme weather.

With that in mind, Denise Haylett, the Head of Business Support, was introduced to members and invited to report on the key elements of risk scenario 6.

Ms Haylett provided a summary of the current controls in place and actions being taken under the ‘service interruption’ risk, which included the most recent tower block fire in London and lessons learnt from a local perspective.

Councillor Barrington-King voiced his gratitude for the way in which the IT service had kept members and staff fully informed on how the authority had dealt with the cyber attack/malware virus in May.

Mr Quigley noted that the ‘service interruption’ risk had been given a likelihood rating of ‘high’ (4 on a scale of 1-6) but only an impact level of ‘medium’ (2 from a scale of 1-6). He felt that the impact rating should be reviewed and made higher.

Ms Haylett advised that, across the county, this had been given an even lower risk assessment rating.

In supporting Mr Quigley in his view, the Chairman nevertheless welcomed the change in focus to risk scenario 6 and the proactive approach being taken by the authority.

On other aspects of the report, Mr Quigley drew attention to the fact that the authority’s risk management approach was based on the outcome of a workshop facilitated by the authority’s insurers, held in 2013. He felt that plans should be developed to review the current approach.

Mr Colyer confirmed that the authority’s insurance contract would shortly be going out to tender, adding that, once the outcome was known, such a review would take place with the successful tenderer.

Parish Councillor David Coleman felt that the authority should be examining its degree of risk associated with the RVP shopping centre, bearing in mind the level of its investment. Mr Colyer said that the Borough Council enjoyed the freehold ownership of the centre and had granted a long lease to the current operators, Hermes. He added that when this shopping centre had first been built, the Borough Council had secured a minimum income of £837k per annum by way of ground rent. Mr Colyer said that the current appearance of empty shop units was a managed process by Hermes, ahead of their plans – for which planning consent had been given – for a significant expansion. He added that the expansion plans would not impact on the minimum ground rent agreement the Council already had in place.

Parish Councillor Coleman still felt that the Borough Council should, by now, have seen a continuing upward trend in its ground rent share of income. However, Mr Colyer said that there was a significant element of recovery still taking place from the global financial downturn started in 2007/08 which was impacting on rent levels.

Councillor Barrington-King reminded the Committee of the scale of the benefit which a former Leader of the Council – John Spare – had secured, when the RVP shopping centre had first been built. He said that the Council owed much to the foresight and skill of Mr Spare.

RESOLVED – That the risk management report and arrangements for managing strategic risk be noted.