Agenda item

To review and note the corporate risk register, and consider any necessary recommendations.

The CE introduced the report and informed Members that it had been updated by CLT and provided an assessment of the risk position of the authority, subject to external factors, and issues arising within the authority. He added that environmental and global factors were also taken into account, and whilst risks relating to matters such as Covid had now reduced they could be reconsidered in future if required, alongside other civil contingencies matters. It was noted that risks relating to projects such as the NWHSHAZ project had reduced as the project approached completion, though other projects such as the Fakenham roundabout continued due to delays caused by Nutrient Neutrality. The PPM noted that there would be an additional risk added in the next CRR related to net zero.

Questions and Discussion

       i.          Cllr S Penfold referred to direction of change indicators and sought clarification, to which the PPO confirmed that arrows to the right meant that the risk score had not changed since its last assessment. He added that recruitment risks referred to competitive challenges and asked how the recruitment software would help overcome these challenges. The CE replied that this software would move the recruitment process online, which would create an end to end digital process to improve efficiency. He added that it was his understanding that the software had already been implemented and it was confirmed that the comments needed to be updated.

      ii.          The Chairman noted that AI wasn’t covered within the CRR and asked whether this had been considered in any way, given that it was a growing concern. The CE replied that there had been some consideration of these risks by the Customer Services Manager but no formal consideration had been given as yet. The Chairman suggested that this should be given consideration going forward due to increasing risks. The CE replied that it should be taken into account, but noted that many authorities were delivering considerable efficiencies by adopting some use of AI systems. The PPM replied that information security was covered within the CRR and she expected that the IT Team were very aware of the risks posed by the use of AI.

     iii.          The Chairman raised the simplification of financial reports as a risk to ensure that Members properly understood the financial information presented to them, given the prevalence of financial issues seen at other authorities throughout the Country. The CE agreed that this was a risk, but the DFR was aware of concerns and Members should be reassured that the Council was not in a position of significant financial concern. He added that there were concerns on the number of vacant commercial properties in Fakenham, but the District was not currently at risk of losing any significant high street shops. The Chairman noted that Members had a responsibility to ensure that financial risks were mitigated, and whilst training would help, efforts also had to be made to ensure that Members fully understood the financial information presented to them. The CE replied that greater attention was being given to budget monitoring throughout the year, but the DFR was also aware of the desire amongst Members for a simplification of financial reports, and a balance would need to be found. It was confirmed following a question from the Chaiman that financial understanding was not reported as a separate risk, but the S151 officer had a statutory obligation to advise Members and report any concerns. The PPM suggested that she could raise this matter as a service level risk with the S151 officer.

    iv.          It was confirmed following a question from Cllr S Penfold that a key could be provided for risk symbols to ensure that Members fully understood the report.

      v.          Cllr J Toye proposed that consideration be given to the addition of an AI risk to the Corporate Risk Register. The proposal was seconded by Cllr S Penfold.

RESOLVED

1.     To not the Corporate Risk Register.

2.     To request that CLT give consideration to the inclusion of an AI risk on the Corporate Risk Register.