CCC Strategic Risk Register 06-Dec-2010

8/7/2019 CCC Strategic Risk Register 06-Dec-2010

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Appendix 1Strategic Risk Register 6 December 2010

Summary

Breakdown by Risk Ranking 29 risks noted

6 High Risk 12 High/Medium Risk 3 Medium Risk 8 Medium/Low

Breakdown by Risk Category

6 Legislative & Regulatory 4 External 5 Major Projects 5 Partnerships

5 Financial 3 Contingency 1 Internal

No new risks added or removed. Scores remain unchanged.

The New Marlowe Theatre Project and the Beaney Redevelopment are thehighest rated risks.


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Strategic Risk Register December 2010Risks Scores & Ranking

Risk Likelihood Impact Score Last QrtVery High None

None

High Risk (16 To 20)

New Marlowe Theatre 4 5 20 20

Beaney Redevelopment 4 5 20 20

Budget Management 4 4 16 16

Building Maintenance Funding 4 4 16 16

Horsebridge Centre 4 4 16 16

Active Life 4 4 16 16

High/Medium (12 to 15)

Coastal & River Flooding 3 5 15 15

Safeguarding Children 3 5 15 15

Herne Bay High School New Sport Facilities 3 4 12 12

Traffic Congestion 3 4 12 12

Business Continuity (General) 3 4 12 12

Housing Demand 4 3 12 12


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Strategic Risk Register December 2010Risks Scores & Ranking Continued

Risk Likelihood Impact Score Last QrtMedium (9 to 11)

Coastal Regeneration 3 3 9 9

Management Skills & Staff Development 3 3 9 9

Fraud & Corruption 3 3 9 9

Medium/Low (6 to 8)

Business Continuity (ITC Services) 2 4 8 8

Shared Services 2 4 8 8

Banking Crisis & UK Public Finances 4 2 8 8

Anti-Social Behaviour 2 3 6 6

Equalities and Discrimination Legislation 2 3 6 6

New International Financial Reporting Standards 3 2 6 6Food Safety Inspections 2 3 6 6

Capita Housing Rent IT System 2 3 6 6

Low (1 to 5) - None

None


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Likelihood

Score - 1 Score - 2 Score - 3 Score - 4 Score - 5

Highly Unlikely Unlikely Possible Very Likely Definite

Previous experience at thisand other similar

organisations makes thisoutcome highly unlikely to

occur.

Previous experiencediscounts this risk as being

likely to occur but otherorganisations have

experienced problems in

this area.

The council has in pastexperienced problems in

this area but not in last threeyears.

The council hasexperienced problems inthis area in the last three

years.

The council is experiencingproblems in this area orexpects to in the next 12

months.

There are effective, testedand verifiable controls in

place that preventoccurrence of this risk.

There are controls in placedthat whilst not tested appear

to be effective.

Some controls are in placeand generally work but therehave been occasions when

they have failed andproblems have arisen.

Controls may be in placebut are generally ignored or

ineffective.No controls are in place.

Impact

Score - 1 Score - 2 Score - 3 Score - 4 Score - 5

Negligible Low Medium High Very High

Little or no financial impact(less than 5,000).

The financial impact wouldbe losses or loss income of

no greater than 25,000.

The financial impact wouldresult be losses or loss

income of no greater than100,000.

The financial impact wouldresult be losses or loss

income of no greater than500,000.

The financial impact wouldbe greater than 500,000.

Council services are notdisrupted.

Some temporary disruptionto the activities of onecouncil service but not

beyond this.

Regular disruption to theactivities for one or more

council service.

Severe service disruptionon a departmental level orregular disruption affectingmore than one department.

Severe disruption to theactivities of all council

departments.

No impact on the delivery ofthe council's corporate

objectives.

It may cost more or theremay be delay in delivery

one of the council'scorporate objectives.

A number of corporateobjectives would be delayed

or not delivered.

Many corporate objectivesdelayed or not delivered.

Unable to deliver mostobjectives.

No loss of confidence andtrust in the council.

Some loss of confidenceand trust in the council feltby a certain group or withina small geographical area.

A general loss of confidenceand trust in the council

within the local community.

A major loss of confidenceand trust in the council

within the local community.

A disastrous loss ofconfidence and trust in the

council both locally andnationally.


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Risk Category Definitions

The purpose of categorising risks is to give a general overview of range and type of risks the council is managing. Strategic risks by their naturecan often be placed into several different categories, but to simply this risk on this register are placed into their most relevant category.

1. Financial Risks

Significant risks related to budget management and financial controls.

2. Contingency Risks

Risks with a high impact but low probability e.g. business continuity.

3. External Risks

Risks where the local community would largely feel the impact.

4. Internal Risks

Risks that impact largely on internal service delivery and risks associated with the development of new services.

5. Legislative & Regulatory Compliance

Risks that arising from the introduction of new legislation, regulation and directives.

6. Major Projects

Risks that impact upon the councils major projects.

7. Officer & Member Capacity

The councils ability to deliver good quality services is related to the abilities of its officer and members. These list the risks that could impact onofficer and member capacity and damage performance.

8. Partnerships

Risks arising from the councils key partnerships and contracts.


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Risk Risk Owner Risk Description Likelihood Impact Risk Rating Risk Controls

Major Projects

New MarloweTheatre

Head of Culture

&Enterprise

JaniceMcGuinness

1. Funding Shortfall Therisk that funding targets are

not achieved and thefunding shortfall will need to

be paid for via contingency.

2. Project DelayThe risk ofdelay and additional costsdue to constructionproblems, archaeologydelay and/or unforeseenground conditions.Remaining risks to the

project include the risk ofarchaeological finds duringdrainage works andflooding in the existingbasement.

3. Cost Overruns Risk thatcosts may overrun as aresult of additionalcontractor claims andchange controls during the

build period. Increasingrisk that additionalexpenditure will be requiredpost Practical Completionand during the client fit out

period.

4. Community RelationsLoss of goodwill with localresidents and businessesarising from inconveniencearising from construction.

5. Interim Audience Loss-The closure of the theatre,the loss of business andattracting back audiences

4 Possible5 Very

High 20

Funding AgreementsKCC grant and loan

agreements signed andsealed. First 1 million ofKCC grant banked.

Fundraising- FundraisingCampaign target has been

reduced from 6m to 4.1mand the capital budgetrevised. Review carried outby MT. The fundraisingcampaign has 1.5 million

left to raise.

Project DelayProgramme float wasincluded to cover

unforeseen events andarchaeological

discoveries. Building workis currently 14-weeks indelay, but the projectremains on track to re-open as planned inSeptember 2011.

Contingency Budget Setup to cover essentialadditional work - Changecontrol and approvalsprocedure in place. ChangeControls regularly reportedto Executive. Constructionrisks reducing but client fitout risks increasing.

Communication Plandeveloped to ensureneighbours and other

stakeholders are kept


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once completed.

6. Corporate Capacity- Theproject is a major timecommitment for key officersin planning and managing

the project.

7. Future Running CostsOnce the project iscompleted the annualrunning costs of the theatrewill increase but it isanticipated that income willrise by the same extent.

informed (e.g.

neighbourhood forums) andhave a channel for commentduring construction phase.

Complaints have reduced.

Project Manager-Appointed to focus onMarlowe & Beaneydevelopments.

Business Plan- The planhas been finalised, outliningfuture subsidy levels withoutneeding an additional

increase for running costs.


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Major Projects

Beaney InstituteRedevelopment

Project

Head of Culture

&Enterprise

JaniceMcGuinness

1. Cost overruns and delayscaused by ArchaeologyArchaeological digextended until end of Maycausing delay to

programme and additionalproject costs. Furtherarchaeological finds maybe discovered duringdrainage works. Furthercosts overruns and delayslikely following thediscovery of structuraldefects in the existing roofand High St faade. Riskthat contingency will beinsufficient to cover funding

gap.

2. Funding Shortfall -Current private fundraisingtarget of 2 million, withCanterbury City Councilresponsible for 600,000 ofthis target.

3. Cost overruns Wateshave been appointed themain contractor and acontract price agreed.Price was subject tovariations following thedelays caused byarchaeology. Further riskthat deferment costs will beadded for unforeseenissues with the existingbuilding.

4. Project Delay -

4 - Possible 5 Very High 20

CCC Funding- CCC hascommitted capital funding ofover 1 million to project andhas also agreed to underwrite600,000 of any funding gap.

KCC Funding- KCC arecontributing over 1.25 millionfunding and haveunderwritten a further 1.4million gap.

Heritage Lottery Funding-HLF are contributing6,515,000.

SEEDA Funding SEEDAfunding of 950,000 obtained

towards purchase ofsurrounding property.

Private FundraisingPrivate fundraising campaignbeing led by Museums team.Funding has been receivedthrough Interreg.

Cost overruns finalcontract price andprogramme have beenagreed. Contingencyaccount set up to coveressential additional work -Change control andapprovals procedure inplace. Change Controls tobe regularly reported toExecutive


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Programme has beendelayed and additionalcosts incurred due toarchaeology and otherenabling works. Targetcompletion date revised toSpring 2012.

5. Community Relations-Issues affecting neighbouringproperties may require somecompensation payment,particularly Right to Lightissues. Communication withneighbours duringconstruction period key toensuring no loss to Councilreputation.

Community Forum- JointBeaney/Marlowe communityforum established toimprove communicationbetween council, developersand residents.


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Financial

BudgetManagement

DirectorOf Finance

Jim McDonald

Following the financial andeconomic crisis, publicsector finances are in avery poor state andindications are that localauthorities need to plan

now for sharp cutbacks ingovernment funding.

District councils areexpected to feel thisparticularly badly aseducation and healthbudgets are expected to bering fenced.

The new Government hasannounced a further 60bn

savings will be requiredand a public finance auditis to be undertaken.

In addition Council Taxcapping levels are likely tobe reduced.

1. Capital Funding-Inadequate provision forcapital commitments onbuildings, equipment orinfrastructure.

2. External EconomicPressures - Notably the'credit crunch' oninvestment risk and generalinflationary pressures.

3. Council Income- Incomereceipts from parking,property, land charges and

4 - Probable 4 - High 16

The councils executive hasrecognised the financialdifficulty and managementteam and the Finance subgroup of the Executive havedeveloped proposals to take

account of these pressures.

The approved 4-year budgetis balanced for 2010/11.There will be close budgetmonitoring during the year toidentify variances as soon aspossible. Current in yearreductions in governmentfunding can be dealt with.

There is a recognition that

the 4 year budget will needto be revised to reflect thenew governments budgetpriorities and planning forthat has begun.

Staff budgets were cut by5% for 2009/10. A seniormanagement restructure hasbeen undertaken andsavings from that will accruein 2010/11. Restrictions onrecruitment are beingreapplied.

The condensed efficiencyreview programme hasdelivered the required 5%staff and 2.5% service costsavings.

A new round of customerfocussed reviews and the


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investments are lower thanpreviously experienced andshow little sign of recovery.

4. Marlowe Redevelopment-This is the single biggestcapital project in thecouncil's history. It will havea significant impact on thebudget not just in theconstruction phase butongoing running costs, if itis not managedsuccessfully.

5. Capital Programme wasreliant upon 4 - yearprogramme of capitalreceipts from disposals at atime when the propertymarket is falling and

planned sales are stalling.Borrowing has beenundertaken pending arevival in the propertymarket.

6. Prudential BorrowingThere may be restrictionsintroduced to control localauthority borrowing whichwould impact on thecouncils ability to complete

the 4 year capitalprogramme.

shared services programmeare expected to providefurther savings in budgets.

The recession may havelowered incomes but hasalso resulted in keenerprices for some contracts.

Pensions costs and theunknown impact of thenational free fares schemeare risks to future yearsplans, although responsibilityfor concessionary fares willtransfer to the county in April2011.

The council has followedconventional local authoritypractice for funding majorrenewals and that is

provision is made in thecapital programme. Whilstthis has worked so far thecouncil may find it moredifficult in future as capitalresources reduce.

Improved procurement ofcontracted services.

Income budgets particularlyfor car parks, property rents,

planning fees, building controlfees and land charges will bemonitored closely as will fueland premises expenditurebudgets.

See Marlowe Re-Development Project riskentry for how risk controlsare being applied.


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Where values beingprovided by advisers forcurrent disposals are in linewith expectations sales willproceed, in other cases thecouncil will retain assets andlook to borrow on a short-term basis until the marketrecovers. The position willbe monitored closely andprogramme revisedaccordingly.

Borrowing for the 2010/11and 2011/12 major schemeshas been undertakenalready, in case capitalborrowing controls areintroduced later.


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Financial

Building

MaintenanceFunding

Head of Property&

Engineering

MalcolmBurgess

Potential risks impacting onthe long-term funding ofmaintenance of councilowned or operatedbuildings.

1. Ongoing InvestmentThere is a risk ofdeterioration if there is alack of ongoing re-investment in operationalproperties.

2. Historic Buildings-Council property portfolioincludes a number of large,ageing and in some caseshistoric buildings. Many ofthese have long-termmaintenance requirements.

3. Energy Costs- Pricevolatility and generallyrising energy costs remaina major concern.

4 VeryLikely 4 - High 16

The building maintenancefund was re-introduced in2006/07. It was hoped thatin time under spends on

the fund would build up areserve to act as a cushionagainst unforeseen urgentrepairs. Expenditure in2008/09 was within thebudget and a smallreserve has beenachieved. However, thereis still a bow wave ofmaintenance to beaddressed (see below).

Growth bid in 2009/10 tobring fund into balanceaccepted, but granted overlonger 4-year period sorepairs are being deferredto keep fund in credit.

Growth bid for capital in2011/12 to address majorworks needing immediateattention.

Energy saving measuresare being introducedduring normal replacementcycles to reduce costs.


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Partnerships

Horsebridge Arts&

CommunityCentre

Head ofCommunity

Development&

Open Spaces

Suzi Wakeham

1. Reputation- Poorperformance will reflectdirectly upon the council.

2. Financial- Heavily reliant onannual council grant that theTrust maintains is insufficientto meet their net costs. Not

resilient to changes in incomeand costs. Despite thebusiness plan and interestfree loan, the financial stabilityof the business is still inquestion - particularly due tothe increased energy costsand an inability to establishreserves.

3. Partnership- Failing toestablish common goals,

effective communication andbuild trust.

4 - VeryLikely

4 High 16

Year 1 consultancy studyreport makes a number ofrecommendations regardingcouncils long-term options,

board role, managementstructure, businessdevelopment and incomegeneration opportunities.

The Horsebridge hasappointed a new director whoofficially starts in January, butis covering key duties in theinterim. The new Director isworking through the Yr 1report in detail and progresswill be presented to AuditCommittee on the 29thNovember.

Active Life involved in runningback room functions for thecentre. Merger idea hasbeen rejected at this stage,but joint procurement beingtaken forward to generateefficiency savings.

Meeting took place betweenHoS, chair and manager agreed HoS would facilitateworkshop with boardmembers. Chair andmanager confirmed thatHorsebridge cash flow for2010/11 is fine.

.


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Partnerships

Active Life(Leisure

Centres)

Head of Culture&

Enterprise

JaniceMcGuinness

Active Life Ltd manages thecouncil's sport and leisurefacilities. Many corporate planobjectives are dependant inthe successful managementof these facilities, which

makes this one of thecouncil's key partnerships.

The key risks are: -

1. Reputation- Poorperformance would damageconfidence in the Active Lifeand the council.

2. Financial- The under-capitalisation of the Trust

makes it less resilient to costand income changes. ActiveLife may need to reduceservice to keep within budget.

3. Partnership- Maintaining agood working relationshipbetween the Trust and theCouncil is important to itachieving its business aims.

4. Energy Costs A major costcomponent (e.g. swimmingpools). The Trust is financiallyvulnerable to sudden andunexpected increases inenergy prices.

4 - VeryLikely

4 - High 16

Performance monitoredthrough the fundingagreement. Councilincreasing investment inbuilding maintenance toimprove quality of centres.

Long-term business plandeveloped that outlines aseries of options about howActive Life should operate,including opportunities fornew commercial activities..

Revenue impact of HerneBay High School/Herons,Whitstable CommunityCollege development and

Wincheap Soft Play beingfactored into futureprojections.

Active Life has developedtheir own efficiency plans inorder to reduce their costs.

Leisure reviewcommissioned to reviewlong term council options forleisure provision.


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Contingency

Coastal&

RiverFlooding

Head of Property&

Engineering

MalcolmBurgess

1. Coastal Flooding- Largeparts of the districtsshoreline are in flood riskareas including Whitstableand Herne Bay. Theintegrity of the seadefences and other flood

defences are therefore vitalfor the local community.Since 2008 the strategicmanagement of seadefences at national andregional level transferred tothe Environment Agency.

2. Inland Flooding- Thedistrict has a risk of inlandflooding from rivers andother watercourses. The

Environment Agency areresponsible for main rivers,Riparian owners areresponsible for otherwatercourses, however theCouncil has powers toundertake preventive workto mitigate risks.

3. Flash floods- Localisedflash floods are difficult topredict and there is very

limited time to respond toprevent flooding ofproperties in extremeevents.

4. Statutory Duties- Thecouncil has a duty underthe Civil Contingencies Actto prepare for civilemergencies. Flooding is arealistic threat and one that

3 - Possible 5 - Very High 15

Sea Defences- CoastalDefences have beenimproved over the years tovarying standards. Theminimum is a 1 in 50 yearsevent. There is an emergencyflooding plan, which is

invoked as appropriate.Continue to lobby throughCoastal Group and LGA forcontinued involvement ofdistrict councils in nationaldecision-making on seadefence priorities.

Emergency Plan- There isan emergency flooding planand this operated well inprevious incidents. Remedial

works have been undertakenin a number of areas. Regularexercises of flood plans takeplace. Duty rota of engineersto monitor weather conditionsand prepare emergencyresponse. Take action onpoints raised in EmergencyPlanning and BusinessContinuity risk assessment

New Residential

Developments- Responseto Ashford developments hasresulted in acceptance ofdesign parameters ondischarge flows and on sitestorage for newdevelopments to controldischarge of water based onagricultural run-off.

th il ld b

Sh li M t


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the council would beexpected to be preparedfor.

5. The Flood & WaterManagement BillThenew bill is based onrecommendations from thePitt Review and is expectedto give upper tier authoritiesgreater responsibility for

managing flood. Both thecounty and districts willneed to work in partnershipin order to meet theseadditional responsibilities.

Shoreline ManagementPlan- Plan has been agreedat Council. Overview andScrutiny and Executive havereviewed progress againstFlood Scrutiny Review ActionPlan and good progress hasbeen made on those areaswithin the council's control.


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Legislative&

Regulatory

Safeguarding &Promoting the

Welfare ofChildren Act

Head ofCommunity

Development&

Open Spaces

Suzi Wakeham

1. Legislative Changes- Thecouncil now has greaterresponsibilities andobligations to safeguardchildren.

2. Embedding ChildProtection- Withoutcomprehensive polices,procedures and training thesafety and protection ofchildren may be at risk.

3. Further Changes- Outcomeof Haringey Public Enquirycould have furtherimplications on how thecouncil works with children

3 - Possible 5 - Very High 15

Safeguarding policy in place.Key corporate policies andprocedures amended toreflect policy includingrecruitment, grievance anddisciplinary policies.

All posts affected have beenidentified and categorised.Ongoing programme ofmandatory training is in place.

Internal publicity campaigndelivered to raise awarenesswith staff and dedicated areafor safeguarding establishedon the intranet.

Safeguarding requirementsstatement now included inrelevant contracts with thirdparty providers.

Regular meetings held withkey contacts from all relevantservices, to ensure all kept upto date with legislation andtraining opportunities.

Internal audit carried out on

corporate compliance tosafeguarding obtainedreasonable assurance.Action plan beingimplemented.

Young workers policy beingreviewed as wasresponsibility of on-sitepersonnel service, now EKHR


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Major Projects

Herne Bay HighSchool

New SportsFacilities

Head of Culture&

Enterprise

JaniceMcGuinness

The project is in threestages: -

1st stage Relocation ofPier Sports Hall to HBHS.

2nd Stage Extension ofHerons Sports Centre.

3rd Stage PierRedevelopment

Agreement has beenreached between theschool, KCC and CCC forthe HBHS project to goahead.

The risks to the council arenow predominantly financeorientated: -

1. Sport England BidTheoutcome of the 800KSport England bid is veryuncertain as the terms ofthe agreement reachedwith the school are nowless in line with SportEnglands criteria. Sport

England has its ownfunding constraints.

2. Cost Overruns To befunded 50/50 between KCCand CCC.

3 Possible 4 - High

12

Legal and fundingarrangements in place forHerne Bay High School.

Herons refurbishmentprogressing

Both projects subject torobust projectmanagement and changecontrol mechanisms.


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External

TrafficCongestion

Head of

Planning&

Regeneration

Ian Brown

Canterbury has anacknowledged problemwith congestion: -

1. Quality of Life- Problemswith the road network have

a detrimental impact on thelocal community and canrestrict economicdevelopment.

2. New Developments-Increasing congestion dueto impact of additional carsfrom the development ofBrownfield sites and theirassociated high-densityhousing - e.g. Tannery,

3. New Road Schemes-Schemes like the A2junction improvements andother desirable schemesthat would help alleviatecongestion problems are aKCC or Highways Agencyresponsibility. CCC haslimited influence and somecritical schemes may notprogress.

4. Recession- Downturn ineconomy will mean delaysin implementing newdevelopments.Infrastructureimprovements throughdevelopments will besignificantly delayed andincome from s106agreements will reduce in

3 -Possible 4 - High 12

Transport Action Plan-A2 slip road (on-slip road)at Wincheap beenapproved and constructionhas begun.

Traffic Management andControl System- Beinginstalled in stages by KCC.Active Traffic Managementapproach piloted inMaidstone.

New DevelopmentImpact Study- Study andreview aims to addressfuture parking needsthrough off-street and Park

& Ride provision tomanage traffic congestion.The Parking Strategyrecognises impact ofdevelopments uponparking demand.Modelling study inprogress. LDF process willrequire full assessment oftraffic/transport impact offuture development.

Park & Ride Extension toDover road Park & Ride sitedependant on siteacquisition.

New Traffic Model forCanterbury -This will helpassess and compareimpact of differentdevelopment scenarios in

the short term traffic in the city This will


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the short term.

5. Park & Ride- Constructionof 4th Park & Ride site mayface opposition and lengthydelay in implementation.

traffic in the city. This willprompt a review of thetransport strategy toensure that futuredevelopment issustainable and will informoptions for the preparationof the LDF. VISUM modelnear completion.


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Contingency

BusinessContinuity(General)

Head of Housing&

Street Scene

Larissa Laing

The impact of a business

continuity incident on thedelivery of council servicesdue to: -

1. Loss of key building or officespace.

2. Loss or lack of key staff.

3. Loss of key equipment orsystems,

4. Lack of fuel,

5. Loss of utilities, services,supplier or contractor.

3 - Possible 4 - High 12

Business Continuity PlanPlan has identified criticalservices. All Business

Continuity documentation tobe reviewed by services bythe end of 2009.

Exercises- Tabletopemergency exercise held inMarch 2009, which includedbusiness continuity elements.Further exercises planned.

Standby Generator Thegenerator is now functional.

Shared Working-Collaboration with East Kentauthorities to develop plans toincrease resilience


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External

HousingDemand

Head of Housing&

Street Scene

Larissa Laing

Head ofPlanning

&Regeneration

Ian Brown

There is high demand foraffordable homes and arelated risk of greaterhomelessness / inadequate

housing provision.

Another impact of therecession is delay andcancellation of many newhousing schemes thatwould have included anaffordable housingprovision.

1. National & RegionalFactors- Housing demandis related to national andregional housing planningpolicy as well as marketfactors. All South Eastauthorities are facingincreased difficulties withthis risk.

2. Recession- The downturnin the housing market willmake it very difficult to

meet housing targets. Thiscould have an impact onovercrowding levels andthe size of the Housingregister.

3. Social Impact- Economicpressures lead to greaterfamily breakdown anddomestic violence.

4 - VeryLikely

3 - Medium 12

Homelessness strategyreviewed across EastKent. Focus onreconnecting rough

sleepers and betterdistribution of services.

Housing Strategy in placeand monitored regularly.Under review to ensure up-to-date response to current risk.New strategy to be in place in2011.

Liaising with CLG, RSLsand developers to find

opportunities to re-start thehousing market and developfamily homes. Council buildscheme being progressed.

Strategic Housing MarketAssessment completed. Thiswill inform key strategiesand interventions.

Secured CLG funds toextend free legal advice inCounty Court for defendantsin mortgage repossessioncases to preventhomelessness.

Working with partners tomonitor impact of therecession on homelessness,co-ordinate responses andimplement mortgage rescuescheme. Thus far there is no

noticeable increase in


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noticeable increase inhomeless presentations.

Reviewing hostels in2009/10 to assess how toprovide the accommodationand associated supportservices.

Council participates in themortgage rescue scheme.

Local ImprovementProgramme initiative withHomes and CommunitiesAgency. Will addresspriorities across East Kentand potentially deliver newinvestment to addresshousing and regenerationpriorities.


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Legislative&

RegulatoryInformation

Management

Head of Legal&

DemocraticServices

Mark Ellender

The secure and correctmanagement of personaldata is important to thepublic, especially in light ofa series of high profilefailures in both the public

and private sectors.

1. Information Security-Several concerns raisedshared passwords, PC leftlogged in and the security ofcouncil buildings.

2. Records Management-Records managementcould be improved. Thecouncil's vulnerability hasbeen seen in some recentFOI Act and DP Actrequests.

3. Use of InvestigatoryPowers Public concernsover how councils usepowers under RIPA andimpact on the privacy of theindividual.

4. Freedom ofInformation/Data Protectionrequests ensuring properprocesses are in placeregarding publication orrelease of informationwithin regulated timescalesof 20 and 40 daysrespectively.


Information Security PolicyFull version on the intranetand publicised. Policy nowincluded in annual PDAprocess by requiring

employee declaration ashaving read and accepted it.

Acceptable Use Policy-currently under review

Mini-Data Quality AuditsAudits carried out inSeptember 2009 to checkthat data quality is beingmaintained.

Records Management Allbar one of retentionschedules now complete anda programme of reviews isunderway. Records Centre isimplementing a new databaseto improve the efficiency ofthe modern archive.

Audit CommitteePresentlyuse of RIPA powers reviewedquarterly by the Audit

Committee. The RIPA policyreviewed by the Committeeonce per year.

FOI Dedicated officerappointed to handle requestswhich have increased by 40%to 439 in 2009/10.


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Legislative&

Regulatory

Land Charges

Head ofPlanning

&Regeneration

Ian Brown

1. Regulatory Changes- TheGovernment proposesderegulating some aspects ofthe service and prevents"profit-making" from localsearches. This would have animpact upon the budget of upto 200,000 per annum.Latest consultation proposingthat cost recovery will need tobe in place from 09/10 withaudit of fees/costs thefollowing year.

2. Fixed Fees- LocalAuthorities are obliged bystatute to provide data at afixed fee of 11 to local

private sector searchcompanies for certainservices. The fee level doesnot cover internal costs. Stillno indication whenGovernment is likely tochange fees.

3. HIPS- Introduction of HIPShas meant that a number ofconveyances have signed 1-2year deals with personal

search companies becausethey are more pricecompetitive (see 2 above)Huge increase in numbers ofpersonal searches as aresult.

4. Recession- Downturn inhousing market is stillseriously impacting uponnumber of searches received

4 - VeryLikely

3 - Medium 12

LGA has put pressure onGovernment to explaininequalities of current system.Local Land Charges servicesonly to seek cost recoveryfrom December 2008averaged over 3 years.

Robust response made tocurrent Government

consultation with Canterburybeing offered as a casestudy.

LGA are continuing to pressthe Ministry of Justice for aresolution. Our charges areset at as reasonable a levelas possible to mitigate thepossibility of legal challenge.

Some datasets are publishedto the website allowingaccess without charge.


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5. Further Incomes Losses The InformationCommissioner has takenthe view (July 09) thatpersonal searchers areentitled to view informationwithout charge underEnvironmental InformationRegulations. SomePersonal Search

companies have notified usthat they intend to reclaimfees already collected.Various bodies have soughtlegal opinions on thematter, which remainsunsettled. Personal Searchcompanies are issuing legalchallenges to individualcouncils.


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Major Projects

Football HubProject

Head of Culture&

Enterprise

JaniceMcGuiness

1. Capacity- pressure uponstaff and resources to deliverhigh council priority.

2. Funding project deliveryreliant on external funding.

3. Partnership workingproject delivery reliant onpartnership support.


Corporate Project teammanaging process.

Staged approach to project to

allow for potentialreconfiguration of schemedependent on externalfunding and potential partnerexpectation.

Cross-departmental workinggroup in place to spreadworkload. Budget allocatedfor external support.

Managed through CoreOfficer Group. Robust projectplanning process withapproval at key stages.

Option to deliver on SimonLangton Boys School sitenow being considered.


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Major Projects

Shared Landlord

Services Project

StrategicDirector

Velia Coffey

The council is working withDover, Thanet, and Shepwayto create a shared servicethat would deliver housinglandlord services to all the

authorities.

Key risks include: -

1. Irreconcilable expectationsbetween differentauthorities.

2. Unrealistic efficiencysavings.

3. Knock on impact on other

central services within eachauthority.

4. Lack of tenant support.

5. If project does not succeed future of shared serviceand impact on individualhousing services.

6. The withdrawal of one ofthe remaining participatingauthorities.

7. Section 27 approvaldeclined

3 - Possible 4 - High

12

Project team formed fromparticipating authorities.

Regular updates to Chief

Executives and Leaders.

Business case prepared tomodel general fund and HRAimpacts.

Tenant support confirmed.

Interim Acting MD recruited tosupport project.

TSA have commented

favourably on early drafts ofthe Section 27 application.

Councils have agreed thesecond stage decisions andbudget and resources tosupport next stage are inplace.

Each council has nominatedits Shadow Board member,approved next phase ofproject costs, approved setup of East Kent ALMO andSection 27 submission to theTenant Services Authority.


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Partnerships

CHARM(HousingRepairs)Contract

Head of Housing&

Street Scene

Larissa Laing

The CHARM 2 (HousingRepairs & Maintenance)contract is one of thecouncil's key contracts andpartnerships.

The contract has recentlybeen re-tendered.

Risks now relate to theoperation of the newcontractor: -

1. Demand Housing repairsis a demand led serviceand therefore overall costscan vary and potentially behigher than expected.

However this risk ismitigated by a fixed pricecontract so the risk onlycovers works outside thecontract

2. Contract ManagementServices issues are notcommunicated andeffectively addressed.

3 Possible 4 High 12

Contract ManagementStrong contract managementarrangements have beendeveloped under the previouscontract and these willcontinue including fortnightlymeetings with contractors todiscuss service.

Inspection Regimes &Planned Maintenance -

Reduces the need for high-cost responsive maintenance.


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External

Supporting

People

Head of Housing&

Street Scene

Larissa Laing

Funding for the SupportingPeople programme has oneyear left of certainty.

There is uncertainty overwhether funding will be

extended.

If funding is not continued thecouncil will need to considerwhat parts of the programmeit would choose to fund itselfe.g. Lifeline Services.

There is now a capping ofLifeline monitoring chargesthat may impact on thecouncils ability to deliver

community alarm services inthe same way as now.

Funding for the HomeImprovement Agencies isalso under review.

The largest risk is proposedchanges to the funding of theEnhanced care service. Thisrisk is being mitigated bydiscussions with Kent Adult

Social Services regardinghow we will be providing careand support in enhancedcare schemes.

4 - Likely 3 - Medium 12

A review of the communityalarm service is underwayto find efficiencies inrunning costs and to re-

design services aroundusers needs.


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Major Projects

CoastalRegeneration

Head ofPlanning

&Regeneration

Ian Brown

The vulnerability of coastalparts of the district toeconomic downturns andcompetition from othercommercial centres.

3 - Possible 3 - Medium 9

Herne Bay CentralDevelopment AreaTheArea Action Plan has beenagreed and Dennes havebeen appointed thedevelopment partner. Masterplan to be completed end of2010. The project isexpected to begin in 2011.

Local DevelopmentFrameworkIncludesproposals to help stimulateeconomic activity in coastalareas.

Town Centre Management

ActivityA number ofschemes and activities areplanned to promote bothWhitstable and Herne Bay.

Partnership WorkingPromoting regenerationthrough work with KCC,Tourism South East and localbusiness groups.


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Internal

ManagementSkills & StaffDevelopment

DirectorOf Finance

Jim McDonald

1. Managers Theawareness amongst somemanagers of employment

law, internal staffprocedures and other staffmanagement issues couldbe improved.

2. Skills- The extent andvolume of activity and paceof change poses a risk tostaff if resources andcapability does not matchdemands e.g. projectmanagement skills.

3. Fairness- Pay inequalitiesbetween different divisionsare becoming morepronounced.

4. New skills needed for newfinancial environment.


Training for Managersand Staff SeniorManagement haveidentified a range of skillsthat will be needed for thefuture and training will beorganised during 2010/11.This will commence with asignificant changemanagement programme

Online Training- The onlinetraining provider has beenchanged and those coursesare now more accessible.Use on online training hasbeen promoted

Job Evaluation Anequal pay audit wasundertaken and found thatthe pay scheme did notlead to pay inequalities.Management Team hadcommissioned work toreview the job evaluationscheme; however this ison hold pending otherpriorities and the HRShared Services project.


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Financial

Fraud &Corruption

Director

Of Finance

Jim McDonald

The risk of fraud andcorruption arising due to: -

1. Non-compliance with internalfinancial controls.

2. Failure to promote an anti-fraud culture.

3. Price Fixing in Constructionsector (OFT investigation)

4. Recent high profile publicfraud cases and allegations atboth national and local level.

5. Increased risk of fraud andirregularity from impact ofrecession


Executive andManagement controlsincluding CouncilConstitution, Members

handbook, StandardsBoard, FinancialRegulations, ContractStanding Orders,strategies and procedures,performance managementsystem to give earlywarning of problems.

Internal Audit coverage ofkey systems and thoseidentified from a detailed

risk assessment ofsystems vulnerable tofraud and corruption.

Promotion of anti-fraudand corruption andwhistleblowing policy andmonitoring of codes ofconduct. Robustprocurement processes tominimise risk of cartelsbased on OFT/OGC guide

"Making Competition Workfor You".

Specific audit work aimedat fraud detection will beundertaken in 2009/2010.


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Contingency

BusinessContinuity(ICT Service)

ICT ComputerServices

Manager

Timo Bayford

The risk of an IT relatedbusiness continuity eventoccurring and causingdisruption to the council's ITsystems and general ability tofunction.

1. Network Failure- Risk ofloss of a network or singlenetwork components.

2. Hardware Failure Loss ofone or more servers causingloss of data.

3. Security- virus attack viafirewall, email or externalmedia.

4. Environmental Failure- fire,power loss, serversoverheating.

2 - Unlikely 4 - High 8

ICT Disaster Recovery-Service contracted with ICMin partnership along with 6

other councils. Contractsigned Oct 2009. Testingprovided for in support 2 dayon + 2 days off-site. VMwaretechnology implemented aspart of server consolidationprovides enhanced recoverysolutions. Tested duringimplementation.

ICT Business ContinuityPlan- Computer ServicesManager has reviewed andupdated ICT Disaster Plan.Stored on remote server.Recently updated.

Security- Security protocolsand anti virus solutions inplace and updated regularly,including secure publicaccess to services. Recentlyupdated for GCSx code ofConnection

Fire Prevention- Range ofalarms in place to alertcentral control plus newgenerator, fire protection andair conditioning systems.


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Partnerships

Shared ServicesAgenda

ChiefExecutive

The delivery of councilservices through sharedworking arrangements hasbeen strongly promoted ata national and local levelas a means of deliveringimproved efficiencies andresilience. The successfulimplementation of sharedservices has been givenfurther importance withanticipated cuts in centralfunding for localgovernment.

The potential risks are: -

1. Service DeliveryExpected efficiencies andfinancial savings may notbe achieved or onlyachieved with furtherreductions in servicedelivery.

2. Technical & CulturalCompatibility Bringingservices together mayinitially bring diseconomies

of scale and reducedservices levels, ascompatibility issues areresolved.

3. Project Cost/ StaffCapacity Setting up newarrangements can be time-consuming and costly.

2 Possible 4 - High 8

Governance- East KentJoint ArrangementsCommittee to oversee newprojects.

Communication Liaisonbetween communication

officers in different councils toco-ordinate information tostaff.

Individual Project TeamsProject teams presentbusiness case for agreementbetween the councilsinvolved. Business case isconsidered by collectively andby individual authorities.


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Financial

Banking Crisis &UK PublicFinances(including

Icelandic Banks)

DirectorOf Finance

Jim McDonald

The banking and financialsystem crisis in Autumn2008 has presented anumber of risks.

1. Icelandic Banks- thecouncil had deposits

directly with one Icelandicbank (Glitnir) and one UKsubsidiary of an Icelandicbank (Heritable) totalling 6million. The collapse of theIcelandic banking sectorhas put a proportion ofthese deposits at risk. Theextent of this risk willdepend on the outcome ofcourt cases to determinewhether UK local authority

deposits are classed asPreferred creditors. Theextent of the financialcollapse and the number ofUK depositors who stand tolose funds means that aswift resolution is unlikely.

2. Wider Impact- The priceof dealing with the crisishas meant that UK interestrates are at the lowest

levels ever and the size ofpublic sector debt is veryhigh which is putting theUKs sovereign credit ratingat risk, although the recentnational budget has had apositive effect on thesovereign credit rating.There are risks that atsome point inflation will rise

4 _ VeryLikely

2 -Low 8

Heritable- The Heritableadministrators have madethree dividend payments andfurther payments areexpected. A total re-paymentof around 85 pence in the

pound is anticipated.

GlitnirThe local authoritiescase is being co-ordinated bythe Local GovernmentAssociation and they haveengaged UK and Icelandiclegal teams to seek preferredcreditor status in the Icelandiccourts. Test cases havebeen prepared and hearingswill take place later this year.

Treasury ManagementPolicy- Reviewed regularlyand reported quarterly tocommittee. Monies aredeposited with financialinstitutions with F1 rating orbetter. If UK rating isdowngraded the treasurymanagement strategy will bereviewed.

VAT Reimbursement-Although we anticipate thatthe council will receive asubstantial proportion of themoney back, provisionshave been made in case ofthe need for partial write offfrom the 2.9 millionreturned in the HM Customs& Excise claim.

rapidly and that it will takelonger to come out of


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longer to come out ofrecession.


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External

Anti-SocialBehaviour

Head of Housing&

Street Scene

Larissa Laing

1. Crime Hotspots- Thedistrict generally benefitsfrom low levels of crime butthere are pockets of crimeand general anti-socialbehaviour.

2. Low Level Crime- Publicperception of the level ofcrime can often differ to theactual level. This is ofteninformed by the publicexperience of low levelcrime and anti-social

behaviour e.g. vandalism.


Safer CommunityPartnership The councilhas developed a number ofinitiatives in conjunction withthe police, PCSOs andcommunity groups to dealwith anti-social behaviour.The partnership plan hasbeen agreed.


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Legislative&

Regulatory

Equalities &Discrimination

Legislation

Head of Policy

&Improvement

Mark Bursnell

1. Poor Decision-MakingFailure to take into accountequality and diversityissues may result in thecouncil making poordecisions.

2. Unfair Treatment

Council may directly orindirectly discriminate.

3. Loss of PublicConfidence Public loseconfidence in the council toact fairly.

4. Legal ComplianceFailing to comply with UKequalities law.

2 - Unlikely 3 - Medium 6

Equalities & InclusionPolicy Updated in 2005currently being reviewedfollowing introduction of newEqualities Act 2010 andintroduction of new codes ofpractice in March 2011.

DDA Compliance Accessaudits complete for all councilbuildings. Audits complete forActive Life buildings. Nowworking on action plans.Adaptations made to MilitaryRoad office.

Corporate Equalities &Access Group Chaired by

the Head of Housing,Community Safety andEnvironmental Services andmeets monthly to coordinatecouncil response to newEqualities Act 2011andcorporate equality actionplanning.

Equality Framework forLocal Government Councilcommitment to obtain

Achieving level.Assessment for newframework due to take placein 2011.

Customer Access ReviewProcessProcess nowunderway. Trainingprogramme and phase one ofprocess due to complete byearly 2011.


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Legislative&

Regulatory

InternationalFinancialReportingStandards

Head of Finance

Ian Cooke

New reporting standards arebeing introduced for the finalaccounts in 2010/11. Thisalso requires shadow

accounts to be prepared for2009/10.

1. Implementing these newstandards will impact on thecapacity of both FinancialServices & Property Servicesas they incorporate the newchanges. The new standardswill create additionaladministration and reducecapacity for other projects.

2. Failure to comply with thenew standards will directlyimpact on Use of Resourcesscores and problems with theaccounts being signed off.

3 - Possible 2 - Low 6

Financial Advisory Networkused for updates and briefingnotes.

Head of Finance and staffhave attended training

workshops.

Property Services advised ofchanges.

Contractor employed toreview leases and produceshadow balance sheet at 31March 2009.

Head of Finance and staff willhave to attend further training

in 2010 and 2011 andextensive further studying ofthe new SORP (Statement ofRecommended Practice) totake account of the manyfurther changes required by2011.


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Legislative&

Regulatory

Food SafetyInspections

Head of Housing&Street Scene

Larissa Laing

The council is required tocarry out food safetyinspections on all cateringpremises.

There is an ongoinginspection backlog. This is

due to: -

Changes in the Code ofPractice have increasedinspection requirements.

New inspections need to becarried out when apremises opens or changeshands. The district has ahigh turnover of catering

businesses. It has becomeapparent that just aspremises are closing due tothe recession, peopleinvesting their redundancymoney into a new businessare opening new ones. Thiscreates an additionaldemand for inspections.

There is a separate andintensive inspection regime

for shellfish premises. Thisalso reduces resourcesavailable for other foodinspections.

The risks are: -

1. FSA Intervention- Ifcompleted inspections fallbelow 50% the FoodStandards Agency would


The number of inspectionscompleted within timeremains above average(60%) but backlog hasstabilised.

Primary responsibility forhygiene standards remainswith the premises. Severalinitiatives are planned topromote food safety.

There is a new regime for lowrisk premises that will free uptime.

A new EHO post was createdand filled from 17 August2009. This has helpedreduce the back log.However, a Technical Office(food) was made redundant inMarch 2010 due to costsaving requirements.

audit the food service andcould intervene and take


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could intervene and takeover the inspections,recharging the council.

2. Public Safety- There is anincreased risk of a seriousincident of food poisoning.


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Financial

Capita HousingRent IT System

Head of Housing

&Street Scene

Larissa Laing

A piece of software, whichruns overnight to keep theCapita Housing System upto date with information, isnot functioning correctly.

The system is unavailable

to Housing and ContactCentre staff for significantparts of the week.

The risks arising from thisare:

1. Financial InformationRent payments, housingbenefit adjustments,supporting people

payments are not up todate or accurate.

General rent accountinformation e.g. thefinancial week number,amount of rent to debit toindividual rent accounts etc.is out of date or inaccurate.

Financial information is notavailable to enable

reconciliation of the incomemanagement system.

Regular reports to Finance,Housing Benefits andHousing Options cannot beprovided.

Direct debits are moredifficult to manage.


Support StrategicSupport staff are workinghard to reduce the impact

by running income filemanually

ICT Housing workingclosely with ICT to try toovercome the coreproblem

Capita In contact withCapita to assess whetherthe council can migrate

from its own software to aCapita product.

Income In contact withthe Income Manager andthe Income Section tocheck that incomeaccounts and rentaccounts are reconciling.

CommunicationKeeping all Community

Services and ContactCentre staff regularlyinformed of the situationas it develops.

2. Customer Focus-Banding information for


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gapplicants to the HousingRegister is not up to date.

The supply of information toHousing Benefits to enablethem to processapplications iscompromised. This mayaffect the councils ability to

calculate housing benefit.

New rent payment cardsand rent statements are notbeing produced.

The production of standardletters is affected,particularly bulk arrearsletters in which rentbalances cannot be trusted.

Customers cannot beprovided with currentinformation or balances onrequest.

CCC Strategic Risk Register 06-Dec-2010

Documents

Transcript of CCC Strategic Risk Register 06-Dec-2010