URL: https://powys.moderngov.co.uk/ieDecisionDetails.aspx?ID=78

Decision Maker: Economy, Residents and Communities Scrutiny Committee

Outcome:

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content: Cllr David Thomas, Portfolio Holder for Finance and Corporate Transformation, introduced the Quarter 4 Strategic Risk Register and accompanying report.   It was explained that the report contained 12 strategic risks. An additional two risks were scheduled for discussion in a confidential session due to their sensitive nature.   The structure of the report was outlined as follows:   Appendix A was noted to contain detailed descriptions of each risk, including the mitigating actions being taken and updates on progress since the previous quarter. Appendix B was described as presenting two heatmaps—one showing the inherent risk scores (prior to mitigation) and the other showing the residual risk scores (after mitigation)—to help visualise the effectiveness of the actions undertaken.   It was highlighted that one risk—WO0022: Workforce Recruitment and Retention—had been reduced in score from 16 to 12. This reduction was attributed to successful mitigation measures implemented during the reporting period.   Members were informed that Audit Wales had conducted a review of the Council’s risk management arrangements in March 2025. However, the findings of that review had not yet been received.   It was confirmed that there were no direct financial implications arising from the report. Nonetheless, risk owners were expected to assess the resource requirements associated with managing their respective risks and to determine whether the appropriate course of action was to tolerate or treat the risk.     Points raised by the Committee:   Responses received from Officers or Cabinet Members: General Risk Management Process   How were risks put on the Strategic Risk Register.   Officers explained that risks were initially identified at service level. If a risk scored highly—typically 15 or above—it was escalated to the Strategic Risk Register. The Corporate Leadership Team (CLT) also considered national and international developments and could escalate risks accordingly. A corporate risk management framework and scoring matrix were in place to ensure consistency. Can Members suggest emerging risks. Officers confirmed that Members, as part of their scrutiny role, could suggest risks they believed were missing. These would be reviewed by the relevant Head of Service or CLT before being included. How frequently were risks reviewed and updated   Risks were reviewed routinely through service management meetings and quarterly performance reviews with Portfolio Holders. Heads of Service were expected to monitor and update risks regularly. How were risk owners held accountable.   Accountability was maintained through regular performance and risk review meetings at Head of Service, Director, and Portfolio Holder levels. If assurance was lacking, challenge and escalation would occur. Portfolio Holders and Directors were expected to ensure that risk owners were actively managing their risks. How were risks removed from the register.   Risks were removed when officers were confident that the risk no longer existed or had been sufficiently mitigated. This decision was made through the same review and challenge process used for monitoring risks and was subject to challenge and scrutiny through the committee. How was the register monitored The Governance and Audit Committee conducted deep dives into individual risks. The Strategic Leadership Team also reviewed risks collectively to ensure appropriate scoring and oversight. This process helped maintain consistency and ensured that risks were considered in relation to one another. Why were there two heatmaps in Appendix B.   Officers clarified that one heatmap showed the inherent risk (before mitigation), and the other showed the residual risk (after mitigation). This allowed Members to see the impact of controls and mitigating actions taken. Climate Emergency (EDR0011)   Would the risk rating reduce as mitigation progressed. Officers confirmed that the publication of the Net Zero Route Map in Q4 2025 would help reduce the risk score. The route map would outline clear actions and targets for the Council’s transition to net zero. Officers explained that while significant work had already been undertaken, the route map would consolidate this into a structured plan, enabling better prioritisation and monitoring of progress. Could the economic impact on farmers and food supply be included.   Officers acknowledged the importance of this point and agreed that the economic impact of climate change on farmers and food supply chains should be reflected in the risk. Officers confirmed that the definition of economic impact would be broadened to include these elements, recognising their relevance to Powys’s rural communities When would the Marches Investment Platform deliver a dividend.   Officers explained that the Marches Investment Platform was expected to be piloted with investors later in 2025, with a full launch planned for May 2026. Officers confirmed that the Council would receive a management fee from the platform, which would be reinvested to support climate-related initiatives in Powys. Was the risk too focused on internal mitigation.   Members raised concerns that the risk did not reflect the broader global climate crisis and emphasised that while internal mitigation efforts were commendable, the Council’s ability to influence global climate outcomes was limited. Officers acknowledged this and agreed that the risk should be reviewed to ensure it captured both internal and external dimensions. Nature Emergency (HTR0018)   Would the risk reduce as work progressed. Officers confirmed that as the Nature Recovery Plan was implemented and more actions were delivered, the risk score should reduce. Officers noted that the Council had already secured funding through the Local Places for Nature grant and was working with partners to deliver biodiversity improvements across the county. Was lack of funding a risk.   Officers acknowledged that funding constraints were a significant issue and that this risk was closely linked to financial sustainability. Officers highlighted that without adequate funding, the Council’s ability to deliver on its biodiversity commitments would be compromised. How would the new biodiversity officer’s work be established.   Officers explained that the newly appointed biodiversity officer would be supported by their service manager and would focus on delivering the Nature Recovery Action Plan. Officers acknowledged the challenges posed by the previous vacancy but confirmed that the officer was now in post and work was underway. Financial Sustainability (FIN0001)   How were Sustainable Powys initiatives monitored for savings.   The Portfolio Holder for Finance and Corporate Transformation explained that Sustainable Powys was designed to enable the Council to continue delivering valued services within its financial envelope. He emphasised that while some services might incur additional costs, others would see reductions, and the net savings were what mattered most. Officers added that the Council had a transformation programme in place and that all savings were monitored through routine budget monitoring and performance meetings with Heads of Service. A robust review of the programme’s impact had been undertaken and would be shared with Cabinet and Scrutiny in due course. How sensitive was the Medium-Term Financial Plan (MTFP) to external factors.   Officers noted that the MTFP was highly sensitive to external factors such as inflation, interest rates, and geopolitical events. He highlighted the volatility of economic indicators and explained that while forecasts were built into the plan, they changed frequently. Officers added that the Council worked collaboratively with the Welsh Local Government Association (WLGA) and Wales Fiscal Analysis to monitor developments and feed back to Welsh Government, ensuring that Powys’s challenges were understood and considered. Adult Social Care System (ASC0064)   What contingencies were in place if the new system failed.   Officers explained that a comprehensive implementation plan had been developed for the transition to the new adult social care system. This included fallback options and business continuity arrangements. The Council was part of a national programme, and regular meetings were held with suppliers and other local authorities to manage risks. A read-only version of the current system was available in case of outages, ensuring continuity of access to critical information. Was user feedback built into procurement.   Officers confirmed that user feedback had been integral to the procurement process. Stakeholders including social workers, IT, procurement, and finance staff were involved in system demonstrations and evaluations. This ensured that the selected system was fit for purpose and met the needs of the service. How was training being managed.   Training was being carefully planned to avoid peak service periods. Officers explained that a range of training formats would be used, including online, face-to-face, and one-to-one sessions. Powys would also participate in national training initiatives where appropriate, while tailoring local training to the specific configuration of the new system. Was data cleansing complete.   Officers stated that a major data cleansing exercise had already been completed, but that data cleansing was an ongoing process. The Council had adopted a “spring clean and maintain” approach, with continuous refinement to ensure data quality ahead of the system transition. Property and Compliance (PPP0030 & PPP0031)   How was capital funding prioritised across schools.   Officers explained that capital funding was prioritised in line with the Council’s Asset Management Strategy. The highest priority was given to health and safety and safeguarding works. Where risks were deemed unacceptable, assets were withdrawn from use. It was added that a programme of works for the school estate had been developed based on risk assessments, and that a review of the building stock had recently been completed and would be reported to the Corporate Leadership Team and Cabinet. Was there a split between school and non-school maintenance budgets.   Officers confirmed that most corporate buildings had their own maintenance budgets, while schools had a separate allocation, including £2.5 million for major improvement works. It was noted that remedial budgets were applied on a risk-based approach, and schools were often the beneficiaries due to the higher risks associated with safeguarding children. Were there reserves behind corporate property budgets   Officers stated that corporate property budgets were very tight and difficult to predict. The Council aimed to break even each year, and while there had been a small underspend in the previous year, it was emphasised that funds should be used for urgent matters. Officers acknowledged that there were no significant reserves behind these budgets. Education Risk (EDU0056)   Why did the risk score increase after mitigation.   The Portfolio Holder for Finance and Corporate Transformation clarified that the education risk had been escalated from the service risk register to the strategic register due to an increase in the number of schools in Estyn categories. The score of 16 reflected the Q4 position before recent mitigation efforts had taken effect. Officers added that further mitigation had been implemented since the end of Q4, and the risk would be reviewed again in Q1. How would the Accelerated Improvement Board (AIB) measure success.   The Leader and Cabinet Member for People, Performance and Partnerships explained that the AIB was a temporary measure designed to accelerate improvements in response to Estyn findings. Success would be measured through the Integrated Business Plan and monitored via Cabinet, CLT, and Scrutiny. Officers added that the updated Corporate Strategic Equality Plan would also include clear objectives and performance measures to track progress. Could a working group be formed to assess what education system Powys could afford.   This was suggested by Members and supported in principle, with further discussion to follow. Workforce and Recruitment (WO0022)   Were there still hard-to-fill roles   Officers reported that many previously hard-to-fill roles had been successfully recruited to, including trade staff and support workers. Officers credited the Council’s new recruitment approach and “grow our own” initiatives, particularly in social work. However, it was acknowledged that some roles remained challenging and that the Council would continue to support services in addressing these. Did this include care workers in external organisations.     Officers clarified that the risk only covered Council-employed staff. However, officers also expressed a willingness to share the Council’s recruitment strategies with external providers and to work collaboratively with social care colleagues to address wider workforce challenges.   Did the Council have a plan for future shocks like pandemics   Officers confirmed that the Council had business continuity plans in place across all services. These plans had been strengthened following the COVID-19 pandemic, incorporating lessons learned to improve resilience. It was explained that each service maintained its own continuity plan, which included potential risks such as pandemics and other major disruptions. These plans were regularly reviewed to ensure they remained fit for purpose. Was lack of public engagement a strategic risk   Officers noted that while she could not immediately confirm whether engagement was captured at service level, she would review this and consider it further. She welcomed the suggestion as a potential recommendation from the committee and agreed that it was appropriate to explore whether engagement should be reflected in the strategic risk register.  

Date of Decision: July 3, 2025