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The Committee received report ES/1373 of Councillor Maurice Cook, Cabinet Member with responsibility for Resources, and Councillor Edward Back, Assistant Cabinet Member for Resources. Councillor Cook introduced the report which provided an update on Corporate Risk Management. Risk management was part of good governance and the Council had embedded mechanisms to identify and escalate risks if necessary to the Corporate Risk Register. The management team had recently held a risk management session with the Council's external advisors where they had reviewed and challenged existing risks and any that may not have been identified. The session confirmed the Council had a good approach to risk.
Councillor Cook summarised the red risks on the register which related to the cost of living crisis, inflation, risks associated with imports and the Port of Felixstowe, flood risk and coastal erosion.
The Chairman referred to the red risk concerning the finances and increases in inflation and asked whether this should be red due to the good management in this area by officers and the Committee. Councillor Cook commented that this was a very cautious approach, due to constant daily changes in this area. Officers stated this was a red risk not because it was being poorly managed, but because the parameters were changing so frequently, and the risk had a high impact and likelihood of occurring. The mitigation measures the Council had were proving to be robust, but this was a very volatile area.
Councillor Gooch referred to the green risk concerning contracts and partnerships and asked if there was a risk in this area from the energy costs that businesses were having to take on, especially in leisure. Councillor Cook confirmed that this issue was captured in the red risk on cost of living and inflation, and the green risk was more to do with how contracts were managed.
Councillor Coulam commented on the risks concerning coastal erosion which were red, as opposed to the risk concerning on oil deposits on Gunton beach which was now green, and asked if these should be the same. Councillor Cook commented that the red risk reflected the unknown severity and quantity of tidal surges and other issues along the coast. Regarding Gunton beach, this would hopefully be reducing going forward. Officers commented that there had been significant surveys and investigations on Gunton beach, which meant that there was better understanding of the risk.
The Chairman referred to the amber risk for St Peters Court which was classed as low risk whilst still being non-compliant. Officers commented that this was due to the low likelihood of issues arising, but that the issue would be very significant if it did occur. Work had taken place to identify a programme of works, a report on this was due which would provide further clarification on the level of risk. The Chairman asked that this risk be reworded to make this clearer.
There being no further questions, on the proposal of Councillor Coulam and seconded by Councillor Richardson it was by a unanimous vote
RESOLVED
That having commented on the corporate strategic risks from the Council’s current Corporate Risk Register, governed and monitored by Corporate Governance Group, the Audit and Governance Committee notes its contents.