Strategic Risk Register Position Statement As at 7/09/2011

PART ONE ITEM NO. 5A

REPORT OF THE CITY TREASURER

TO THE: AUDIT & ACCOUNTS COMMITTEE

ON: Wednesday 28th September 2011

TITLE: STRATEGIC RISK REGISTER PROGRESS REPORT Q2 2011-12

RECOMMENDATION:

Members are requested to consider the contents of the report.

EXECUTIVE SUMMARY: The purpose of this report is to inform Members of progress on the Strategic Risk Register.

BACKGROUND DOCUMENTS: (Available for public inspection) . Institute of Risk Management (IRM) / Association of Insurers & Risk Managers (AIRMIC) /Association of Local Authority Risk Managers (ALARM) produced A Risk Management Standard. . Risk Management Strategy.

KEY DECISION: NO

DETAILS: See report attached.

KEY COUNCIL POLICIES: N/A

EQUALITY IMPACT ASSESSMENT AND IMPLICATIONS: N/A

ASSESSMENT OF RISK: Risk management activities undertaken throughout the Council ensure that risks are effectively identified and appropriately managed.

1 SOURCE OF FUNDING: Existing revenue budget.

LEGAL IMPLICATIONS Supplied by: N/A

FINANCIAL IMPLICATIONS Supplied by: The production of this report has no financial implications.

OTHER DIRECTORATES CONSULTED: N/A

CONTACT OFFICER: Cliff Peacock TEL. NO. 0161 607 6980

WARD(S) TO WHICH REPORT RELATE(S): N/A

2 1 Background

Risk Management is a key component of local authorities’ corporate governance arrangements. It is essentially the systematic process by which key business risks / opportunities are identified, prioritised and controlled so as to ensure the achievement of council objectives and commitments.

The purpose of this report is to inform Members of the Audit & Accounts Committee (AAC) of the current position on the key strategic risks currently being managed in the Strategic Risk Register.

2 Risk Management update

Progress on the Strategic Risk Register was last reported in July 2011.The current updated risks and opportunities are summarised in the attached appendix and are listed with the highest risk score first.

3 Risk Management Strategy

It is regarded as best practice to periodically review the Council’s Risk Management Strategy. As part of this a fresh look at how risk is identified is being considered.

The Councils Risk Management Strategy has now been rewritten and is being presented to this September meeting of the AAC.

1 Strategic Risk Register – Position Statement as at 7/09/2011 updated for September 2011 Q2 by risk owner

Officer Area of risk identified for Direction of Travel Detail & Actions responsible the service Q1 Q2 Q3 Q4 (Detailed reports on progress are available on request via the responsible officer ) for risk

. Regular performance management of outcomes carried out via Safeguarding Improvement Board. Evidence of improved safeguarding practice in some areas, but this is at an early stage.

. Performance Management reporting in Safeguarding is well established via the “Report Card”. The Report Card is now fully established and each indicator is accompanied by a commentary from the appropriate senior social work manager which explains and contextualises performance. All indicators are showing month on month improvement SRR14. SAFEGUARDING. Gani Martins . Monitoring of progress and challenge carried out regularly both internally and externally by Ofsted Scope of Risk: Practice in safeguarding and Department of Education. Progress is closely monitored and all actions are reviewed by internal audit as an reporting to children may develop with insufficient pace objective critical friend. Phase 1 of the Safeguarding Action Plan has been actioned. Phase is 2 is now being Strategic Director or sustainability. 16 14 implemented. Nick Page

I4xL4 . Programme and project management resources in place to deliver the plan supported by resources from across the council including ICT, HR, marketing and communications and finance. reporting to Portfolio Holder Cllr Morris . The Safeguarding Improvement Programme has been refined to concentrate on the development of localities and integrated working in order to improve quality and effectiveness of work. This has included developing an early intervention and prevention strategy, providing a range of services to children and families.

. A Peer review is due to take place week beginning 12th September 2011 to 19th September 2011. The outcome of the review will provide external view of the progress of Safeguarding arrangements within the services. Update –September 2011

2 Officer Area of risk identified for Direction of Travel Detail & Actions responsible the service Q1 Q2 Q3 Q4 (Detailed reports on progress are available on request via the responsible officer ) for risk

SRR 16. FINANCIAL IMPACT OF CSR . Balanced budget incorporating £40m of savings for 2011/12 approved by Council 2nd March 2011 following review of (Replaces SSR10 : Financial Strategy) all options by strategic directors, lead members, CMT and B & EG CSR programme team in place to monitor the delivery of the savings targets and report monthly to CMT, B & EG and . John Spink Scope of Risk: Failure to actively manage Budget Scrutiny Committee spending reductions to ensure that . Monthly budget monitoring reports to directorate senior management, lead members, CMT, B & EG and Budget reporting to expenditure is within income following the Scrutiny Committee have been produced each month for March through to August Strategic Director Comprehensive Spending Review. 16 16 . Financial planning for 2012/13 began in March 2011 with the forward projection of an £18m savings requirement and Martin Vickers a Cabinet away day was held on 4th July to identify approach to deliver the required savings reporting to I4XL4 . Directorates now preparing savings options ; CMT and B & EG considering strategic options Portfolio Holder Cllr Hinds

Update –September 2011

. A Creating Capacity project has been set up and all employees have been offered the chance to make voluntary expressions of interest in early retirement, severance, or reduced hours. Over 400 applications for VER or VS have been approved and applications are still available in phase 2 to provide redeployment opportunities.

. All displaced employees have been successfully redeployed and up to now mass compulsory redundancy has been avoided. SSR17. WORKFORCE MANAGEMENT/ IMPACT OF CSR . A programme of support for managers in managing change has been rolled-out

. Further managers briefing sessions took place during July ( replaces previous risk SRR5: Workforce Management ) . A team are ensuring compliance with statutory consultation requirements

. Communications with staff continue Scope of Risk: impact of ineffective workforce planning and management can lead to poor employee relations; recruitment . HR have set up ongoing specific delivery teams to provide support to managers and directorates Debbie Brown and retention problems, particularly in during restructures of business areas throughout 2011/12 known skill shortage areas; morale and reporting to Strategic Director motivation issues that can impact on . Regular and effective communication with the trade unions will continue during 2011/12 performance e.g. increased sickness 12 8 Martin Vickers absence, conduct, capability, grievance . Sickness, disciplinary and grievance cases are regularly monitored to ensure no significant cases. reporting to increase. Portfolio Holder Lack of support to managers during Cllr Hinds restructures and remodelling of business areas can lead to an inadequately skilled and inadequately diverse workforce which may lead to poor service delivery and poor employment relations. I4xL2

Update –September 2011

. New joint Emergency Planning and Business Continuity Forum established in the council . Review of all business continuity plans to be concluded by end October 2011 . Business continuity planning now included as part of the business planning process . Provision of Beacon Centre as a nominated rest centre to replace Broadwalk SRR7. CIVIL CONTINGENCIES . New Emergency Control Centre established (Innovation House) (INCLUDING EMERGENCY PLANNING AND BUSINESS CONTINUITY) . Review being undertaken of rest centre provision with CH&SC David McIlroy . EP/BC on agenda for school governing bodies during Autumn 2011 term Scope of Risk: Failure to recover after . Ongoing flood and reservoir inundation work across GM Reporting to major incident. Strategic Director 9 9 . Review and re-issue of emergency planning and response documentation to be completed in Martin Vickers I3XL3 September 2011 with an activation guide to be issued to directors . New AGMA Civil Contingencies team will officially go live from 1 September and Salford will be Reporting to working with its new business partner to agree priorities and focus on efforts to support resilience and response Portfolio Holder Cllr Hinds . Business continuity and e-learning modules launched for staff and managers . Representation on GM Resilience Forum Olympics 2012 sub-group . BC Exercises for/Community, Health & Social Care and Sustainable Regeneration to take place in October and November . Induction for new (volunteer) Emergency Liaison Officers planned for September. This is the first part in strengthening the ELO response in Salford and a paper to OCT for wider council participation is planned for September/October Update –September 2011 SRR15. MEDIA CITY – PUBLIC SECTOR . Six weekly MediaCityUK Team Salford meetings which update on progress, risks and issues DELIVERY. across the various activities. Key updates are provided to Leader’s Briefing and approvals sought where necessary. . Work continues with public and private sector partners and the meeting structures are to be Karen Hirst reviewed. Scope of Risk: Wider Public Sector cuts, reporting to International Flights, Public Sector . Alternative funding sources and implementation plans for public transport provision have successfully been secured. Strategic Director Partnership Approach to Funding, Regional 9 9 The new Salford QuaysLink bus service, which provides connectivity to MediaCityUK from across Salford, started on Kevin Brady Competition for Inward Investment, Delivery 3rd July 2011. of Public Transport Improvements & . The Media Enterprise Centre is being redefined to be more sustainable and cost effective with senior SCC input and reporting to delivery of the Media Enterprise Centre. close member input as appropriate. The target is to ensure the NWDA single programme and ERDF money is Portfolio Holder Cllr Merry I3XL3 utilised. Regular updates are provided to the Leader and senior SCC colleagues. Update –September 2011

5 Officer Area of risk identified for Direction of Travel Detail & Actions responsible the service Q1 Q2 Q3 Q4 (Detailed reports on progress are available on request via the responsible officer ) for risk SRR13. Achievement of partnership  Thematic leads produced summaries in June of their perception of major trends in their respective areas of priorities expertise relating to children and young people, community safety, health and worklessness Scope of risk  An indicator framework for the Partnership's priorities will enable tracking of progress on them, although many of the indicators are only collected annually, which matches the strategic nature of many of the priorities In October 2010 Salford Strategic Partnership identified its priorities for  The Partnership executive will receive a report later in the calendar year on progress from April to September 2011 for those indicators for which information is available at the half year 2011-14 in the light of the government’s policy programme,  The emerging discussions on collaboration and neighbourhood reform will be born in mind as we look at new ways of working and governance to support an manage partnership delivery of improved outcomes for residents including the likely outcome of the David McIlroy comprehensive spending review. Its  A further detailed assessment of risk control and mitigation across the partnership and associated governance priorities are worklessness, child groups will be undertaken in September 2011 and inform future risk updates. reporting to poverty, health and community safety Strategic Director Martin Vickers There are significant political, 6 6 economic and social negative risks for reporting to the council and its partners if they do Portfolio Holder not achieve progress on the Leader of the partnership’s priorities. Council

Risk score The risk score increases due to social and economic factors. I3XL3 Update –September 2011.

6 Officer Area of risk identified for Direction of Travel Detail & Actions responsible the service Q1 Q2 Q3 Q4 (Detailed reports on progress are available on request via the responsible officer ) for risk . Council’s Portfolio Management Board has agreed that the focus for the Council should be on our major partnerships SRR5. PARTNERSHIP FAILURE including the likes of Urban Vision, Salix Homes and the Primary Care Trust. Partnership management arrangements now implemented with Revised Governance and monitoring arrangements in place. . Council’s Partnership Database is still an aspiration that is at present un-resourced. This issue will Rob Pickering Scope of Risk: Impact of increased be presented at the next Portfolio Management Board for discussion as to its potential further use / rollout. partnership working across the City. reporting to . A review of Urban Vision partnership governance is complete and has been implemented by the Strategic Director 4 4 Strategic Director for Sustainable Regeneration. A Post Implementation Review has been carried out by Internal Paul walker Audit on the Urban Vision Clientside. This should be complete by the end of July 2011. . The governance arrangements that exist for both Salix Homes and Urban Vision will be used to reporting to monitor and ensure delivery of the Council’s budget options. This has been used successfully for 2011/12 and and Portfolio Holder will continue to be used for 2012/13 and 2013/14. Cllr Connor . The risks in relation to UV & SALIX will continue to be monitored. September 2011 –risk will be stood down for now and will drop of the register from Sep 11.

SRR11. RECESSION IMPACT . Salford Recession & Recovery Task Group established to give focus and co-ordinated action to measures to alleviate the impact of the recession across the City. Chaired by Strategic Director for Sustainable Regeneration. The Recession Recovery task group continues to meet. Scope of Risk: Failure to effectively . The focus of the Recovery & Recession Task Group is now, whilst retaining a monitoring and manage the recession may detrimentally tracking role across the City. A revised Recession Tracker has been produced and held up as good practice. This is affect the citizens, economy and prosperity circulated to Cabinet Members and posted on to the Recession Web Pages on a monthly basis. of Salford. . In addition a Building Economic Resilience event was delivered and co-hosted by the Council and Rob Pickering the Commission for the New Economy on the15th February 2011.This reviewed how SCC is playing its part in growing the local economy with input from MIDAS (MIDAS is responsible for attracting inward investment to the reporting to Manchester City Region by promoting it as a leading European business location). Strategic Director 4 4 . Salford has performed well when compared alongside the other members of the AGMA group, Paul Walker however the current financial climate remains a challenge. The objective is now on growing the economy and working with the Economic Development AGMA family (MIDAS, Manchester Solutions, Chamber of Commerce, New reporting to Economy) to deliver the necessary growth. Portfolio Holder Cllr Hinds . The Council, along with other partner agencies has responded well to the recent riots that took place at Salford Shopping City, Langworthy Road, Albion Way and Fitzwarren Street. The Council’s Business Support Team has liaised closely with all businesses affected offering advice and practical assistance to complete financial claim forms. In addition the Council has approved the availability of it’s Support Fund from which businesses can apply for repayable grants and interest free loans to a maximum of £2,500 to meet immediate cash-flow or trading needs. These and the close account management approach with affected businesses is all designed to allow businesses to get back trading as soon as possible and mitigate the impact on the local economy. September 2011 - monitoring update.