Agenda item

Local authorities are required to have risk management arrangements in place. The Council’s approach to managing risk is explained in the Risk Management Strategy which is being presented to the Committee for approval.

David Hughes (Director of Audit, Fraud, Risk and Insurance) presented the Risk Management Strategy 2025-2028 which reflected a global evolution of risk management in response to the economic situation resultant from the pandemic and world events.  During the past few years, risk management had changed a lot particularly in the public sector.  This Strategy embedded the risk management culture of the Hammersmith and Fulham (H&F) Council where there was really good engagement/ of the Chief Executive and the Senior Leadership Team (SLT) and good support of the Audit Committee. David then highlighted the organisational benefits of effective risk management, the structure of the Strategy and an Annual Assurance report on risk management.   He said that upon the Committee’s approval of the Strategy, training would be provided to ensure all staff were aware of the Strategy and knew how to use the risk management toolkit to support the senior management and service teams in maintaining their risk registers.

Jules Binney (Risk and Assurance Manager) remarked that the new Risk Management Strategy was developed based on experience and knowledge of the entire industry.  He was confident that the Council could have even more control over the risks going forward with the residents in a better informed position.

Councillor Florian Chevoppe-Verdier appreciated the roles and responsibilities of all staff and all elected members had been set out clearly in the Strategy so that each could play their part.  He sought elaboration on outcomes of engagement with directorates or the internal teams.  David Hughes said he and his team held regular meetings with the SLT and service teams on risk management arrangements regarding some of the key programmes and projects listed on the risk registers. More training would be provided to bring staff at junior managerial ranks to involve themselves in risk management.

On Councillor Chevoppe-Verdier’s question about insight sharing and industry collaboration with the risk management sector, David Hughes referred to expertise and knowledge sharing among heads of internal audit via the London Heads of Audit Network and the UK-wide Local Authority Chief Auditors Network. In addition, the Institute of Internal Auditors (IIA) provided a good summary of emerging risks identified globally each year.  Materials around emerging risks were also produced by the private firms engaged to help some of H&F’s internal audit work.  As such, H&F was well connected to look at risks from a much wider base over a range of avenues.

The Chair was concerned whether the risk management toolkit was robust enough to respond to the different scenarios resulting from unprecedented events.  David Hughes highlighted the importance of training for staff to adopt the risk management practices and think about the kind of risks (which should be differentiated from issues) that the service teams were facing. Jules Binney added that while it was never possible to anticipate the situations fully, more leeway would now be available by implementing the measures in the new Strategy.  He outlined horizon scanning which helped identify emerging and potential risks over a long term and prepare the response adequately. David noted horizon scanning would form part of the future risk reporting. The Chair noted horizon scanning was a forward-thinking approach which allowed the Council to weather many of storms ahead.

RESOLVED

That the Committee agreed

1. To note and approve the Risk Management Strategy 2025-2028; and 
2. To note an annual assurance report on risk management arrangements would be presented to future meetings of the Committee.