Issue - meetings

To receive an update of progress made on the proposed Risk Appetite Framework.

The Internal Audit Manager provided an update to the Committee on progress made in developing the proposed Risk Appetite Framework (RAF), which would help guide how much risk and opportunity the Council would seek and accept to enable consistent, transparent and informed risk-based decisions in delivering corporate priorities and objectives.

The Committee were advised that since their last meeting, further work had been carried out on the RAF and documents presented (risk appetite pack) to a senior management team meeting for discussion.  Whilst Group Heads were supportive in principle and recognised the potential benefits, they were concerned about the additional pressure and work on an already overstretched corporate capacity.  In view of this, the Internal Audit Manager advised that it was proposed to adopt a ‘soft’ implementation approach which it was believed would result in improved buy-in over time by providing an opportunity for colleagues to gain greater understanding and familiarity with the concept and lead ultimately to a better outcome.

The Committee asked how it was envisaged that a soft implementation would be implemented and how that might compare to a more formal approach and this was explained.   Members considered it essential, rather than desirable, to proceed with a Risk Appetite Framework and that whilst a pilot case might be trialled initially, it was important to set out a timescale and plan for both soft implementation as well as wider and full implementation.  The events of the past two years and current issues had highlighted the importance of considering and documenting risk before making any decision.

In response to a question asking if the aim was to achieve a single risk appetite, the Internal Audit Manager advised that it was considered that an overarching appetite for the Council could be limiting as there may be varied risk appetites in different areas, so it would be more appropriate to have several impact measures to which appetite levels could be applied. 

It was suggested that it would be beneficial to add a risk section to the Committees report template now and officers agreed that was a sensible step and would demonstrate that risk was being considered.

Resolved to:

1.    Note the work in progress in developing a risk appetite framework for the Council.

2.    Agree the soft implementation of a risk appetite framework for the Council and that a further report including a proposed timeframe and plan is added to the Committee’s forward plan for their next meeting.

3.    That a risk section be added to the template for future Committee reports.