Agenda item

Item deferred from 1 February 2010. Report of the Head of Audit and Risk Management to inform the Audit Committee of the current position on risk management implementation across the Council and to provide an updated Corporate Risk Management Policy and Strategy for review and approval.

The Chair asked for an introduction of the report.

The Head of Corporate Finance – Mr Bartle advised the Committee that Mr Evans – Audit Manager – Deloitte and Touche would briefly introduce the report.  Mr Evans informed the Committee that the Council’s Risk Management strategy was reviewed on an annual basis to ensure that it reflected current operational requirements and best practice. The previous version was approved by the Audit Committee at its meeting on 23 April 2009. Following the request of the Chair of the Audit Committee, a quarterly report was presented to the Committee on risk management and compliance with the Council’s strategy. The review and testing of risk registers formed part of the 2009/10 annual audit plan which was approved at the Audit Committee meeting on 23 April 2009. This is an ongoing process to ensure the key controls to manage identified risks were effective and operated as intended.

Mr Evans went on to comment that during 2009/10, the risk registers for all business units, departments and the corporate register were all integrated into the Council’s performance management system (Covalent). Training for system users was provided when their risk registers were loaded onto the system and all risk registers were managed using Covalent from quarter 3 2009/10, which was in accordance with the planned timetable.

(Councillor Reith arrived at 19.40hrs).

The Chair thanked Mr Evans for his introduction and asked if there were any points of clarification from the Committee.   

In response to clarification from Councillor Aitken Mr Evans advised that the risk register was reported annually with quarterly updates.  The Chair further advised that on a quarterly basis the risk register was reported to the Audit Committee to ensure continued compliance with CIPFA guidance/regulations as part of this Committee’s responsibility and the appendices 1 & 2 to the report set out the updated 3^rd quarter’s risk register, and the updated risk management policy and strategy for 2010.

Councillor Santry referred to previous and high profile matters in relation to the Baby P issue, and the Icelandic Banks matter and asked whether these issues were clearly accounted for and reviewed as part of the appendices.

Mr Evans responded that that in relation to the Baby P issue these had been incorporated into the JAR and were subject of discussion later in the agenda as part of that action plan.  In respect of the Icelandic Banks issue, this matter would form part of the financial risk register and that there were various controls in place. In terms of the credit rating risk in relation to the Icelandic Banks it was the case that on one day there was not any risk, and the next the credit situation was completely different. It was a fact that both within Corporate finance and at CEMB, risk was assessed continually. 

In response to further clarification from Councillor Santry Mr Bartle advised that in terms of the Icelandic bank issue it was the case that this had not been considered as a high risk and that the matter could not have been predicted to happen as it did. At every corporate finance management team meeting, and CEMB the risk register was considered and updated and there was a constant review.

The Chair referred the Committee to the measuring of risk as detailed in page 52 of the agenda pack which detailed the impact of risk. It was a fact that the agreed approach to management of risk was effective, and the fact that it was electronically managed assisted this considerably.

In response to clarification from the Chair the shadow Section 151 officer – Ms Willis commented that she would endorse the views expressed in para 8.1 of the report and that the management of risk was prominent in the day to work of the Local Authority.

Mr Paul Hughes – Grant Thornton also advised that the information and actions contained in the report had been assessed and that in his view the way in which risk was managed by the LB Haringey was effective and adequate in comparison with other Local Authorities.

The Chair then summarised and it was:

RESOLVED

i.                    that the implementation of the risk management strategy across the Council be noted; and

i.                    that approval be given to the updated corporate Risk Management Policy and Strategy.