URL: https://rother.moderngov.co.uk/ieDecisionDetails.aspx?ID=2012

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, Strategic and Neighbourhood Services, which provided a position update on risk management processes and the key strategic risks currently facing the Council.   The Audit Committee approved a new Risk Management Policy (RMP) in September 2022.  The RMP was reviewed annually, including updates to the risk appetite statements where necessary to ensure they remained aligned with the Council’s requirements.  The most recent review was completed by the Audit Committee in March 2025.  Cabinet subsequently reviewed the Corporate Risk Register (CRR), the RMP and risk appetites in February 2026.   The CRR, attached at Appendix A to the report was a live document.  Several risks had been updated, and some continued to exceed the Council’s stated risk appetite, including the following:   •     Risk 1: Political – Local Government Reorganisation and Devolution will impact delivery of Council services.  This score exceeded the Council’s risk appetite, reflecting ongoing uncertainty surrounding 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 exceeded the risk appetite due to rising homelessness and increasing costs, plus recent events in Iran leading to an increase in borrowing costs. Although mitigations were in place, a slowdown in house building and reduced availability of affordable housing continued to present challenges. •     Risk 3: Economic/Financial – Failure to operate within a sustainable budget.  This score remained high, reflecting ongoing financial pressure despite existing mitigations. •     Risk 5: Significant breach of data protection (linked also to Risk 7: IT failure).  This reflected increasing risks to data protection and cyber security. •     Risk 10: Financial risk concerning the Rother DC Housing Company (RDCHC). The Council were now at a critical point in terms of borrowing and with the risk of increased cost of borrowing, the Council was reliant on homes being sold at the required prices. Mitigations were in place with an agreed 130 homes being sold to a registered provider (RP). •     Risk 11: The Strategic Asset Management Programme may not be delivered before local government reorganisation and before benefits are realised.  This involved a significant number of assets to be devolved and was delayed due to legal processes, posing a risk to the overall delivery of the project.   Members were given the opportunity to ask questions, and the following points were noted during the discussions:   •     any increase in interest rates would lead to an increase in the income received on the Council’s investments, therefore offsetting some borrowing costs; •     car park income, council tax debts and applications for homelessness were likely to be affected by a rise in the cost-of-living; •     delivery of completed houses and house sales were likely to be affected also; and •     RDCHC’s scheme would soon be reaching its peak debt position of £35m (currently at £30m). A small number of properties had been handed over, with a few more due shortly; income from the RP was likely to be received first.   RESOLVED: That the report and Corporate Risk Register be noted.   (Councillor Coupar declared an Other Registrable Interest in this matter in so far as she was a Director of the Rother DC Housing Company Ltd and in accordance with the Members’ Code of Conduct remained in the meeting during the consideration thereof.)

Date of Decision: March 23, 2026