URL: https://rother.moderngov.co.uk/ieDecisionDetails.aspx?ID=1844

Decision Maker: Audit Committee

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose: To consider the updated Corporate Risk Register

Content: Members received the report of the Head of Corporate and Strategic Services, which provided a position update on Risk Management processes and the key strategic risks currently facing the Council.   A new Risk Management Policy was approved by the Committee in September 2022, was reviewed on an annual basis and the risk appetite statements within it revisited and amended each year (where appropriate) to ensure that they continued to meet the Council’s requirements. The last review was by the Audit Committee in March 2025.   The Corporate Risk Register (CRR), attached at Appendix A to the report, had been reviewed and updated by the Senior Leadership Team (SLT). Several existing risks had been amended, one emerging risk has been added, and some continued to exceed the risk appetite score (as stated on the register), most notably:   •     Risk 1 – Political – Local Government Reorganisation and Devolution will impact delivery of Council services. This score exceeded the risk appetite and reflected the uncertainty of Local Government Reorganisation. •     Risk 2 – Financial – The high costs of rental accommodation, house prices and living expenses are increasing demands for temporary accommodation. This score had been changed from Social to Financial following comments from the Committee. It exceeded the risk appetite due to increased levels of homelessness and escalating costs. Although mitigations were in place, there was a general slow-down in house building and the availability of affordable housing. •     Risk 3 – Economic/Financial – Failure to operate within a sustainable budget. This score remained high and reflected the financial pressure that the Council was under, even with mitigations in place. •     Risk 11 – Emerging/possible financial risk concerning the Blackfriars Development - work would be done to understand the level of risk and more accurately describe, assess and consider mitigations, but it was added to the register now, ahead of this exercise, to inform Members at an early stage.   Service Planning required all Heads of Service/Service Managers to record and monitor their operational risks in a Risk Register. The Service based risks were reviewed by the SLT and formed part of the Performance Framework and monitored at Performance review meetings.   Members were given the opportunity to ask questions and the following points were noted during the discussions:   •     Risk 2 appeared to underestimate the achievement of the mitigations put in place to alleviate homelessness, which had resulted in approximately 7% of the Council’s budget used, less than its neighbouring authorities; •     Risk 1 was out of the Council’s control, was difficult to quantify and possibly too pessimistic; •     financial pressures were increasing, with 17% of the savings programme not delivered and 18% unlikely to be delivered. Whilst Members recognised the successful delivery of 83% of the savings programme, it was noted that the delivery of a surplus on the budget was dependent on higher levels of income than anticipated, that interest rates were likely to fall and financial pressures would, if anything, increase, hence the delivery of further savings would be required; •     the Council appeared to be losing staff to neighbouring authorities with higher rates of pay. The Council was looking at packages of measures to retain staff with an improved benefits offer and was monitoring turnover rates; •     Members suggested that ‘Build more affordable housing’ and ‘Encourage Community Land Trusts’ be added as mitigating factors to Risk 10 (Inability of Rother to deliver its house building targets / failure to have an up to date adopted Local Plan); •     officers to explore whether the CCLA property fund should be added to the risk register; and •     the Head of Corporate and Strategic Services would provide a briefing in due course on how a departmental risk was escalated to becoming a risk on the CRR.   Members congratulated the Head of Corporate and Strategic Services on the revisions made to the CRR.   RESOLVED: That the report and Corporate Risk Register be noted.   (Councillor Coupar declared an Other Registerable Interest as a Director of Rother DC Housing Company Ltd, and in accordance with the Members’ Code of Conduct remained in the meeting for the consideration thereof.)   (Councillor Thomas declared an Other Registrable Interest as Chair of Rother DC Housing Company Ltd, and in accordance with the Members’ Code of Conduct remained in the meeting for the consideration thereof.)

Date of Decision: July 21, 2025