Agenda item

[At the request of the Committee, this item was moved from agenda item 8 to item 6]

The Risk Management report was considered which covered the Council’s activity to identify, monitor and mitigate risk. It was noted that this was the ninth cycle of reviewing corporate and departmental risks since the original baselining of risks in April 2022. It was noted that risk was managed centrally through the 4Risk System and there was a quarterly risk board attended by officers, with risks reviewed by Corporate Management Team (CMT) and corporate and departmental risks were considered by Members at Audit, Governance and Standards Committee on a quarterly basis. Since the baselining of risks the Council had moved from ‘No Assurance’ to ‘Moderate Assurance’ risk level.

It was reported that two new risks had been added to the corporate risk register at quarter 3 2024/25, in relation to Devolution and Local Government Reorganisation (red risk level) and the Council’s New Chief and Deputy Chief Executives appointments (amber risk).

For the devolution and local government reorganisation, it was highlighted that local authorities within Worcestershire were working on submitting a joint ‘high-level’ options proposal to the Government by the deadline of 21^st March 2025. A detailed statement outlining solutions was required by November 2025. At present, the authorities in Worcestershire differed with regard to the preferred option for local government reorganisation.

It was noted that upper tier local authorities in England were facing rising adult social care (ASC) costs and most upper tier authorities were overspending on their ASC budgets. It was commented that local government reorganisation, with the creation of unitary authorities in the existing two-tier areas, was intended to address the rising ASC costs alongside other issues.

In relation to the second new corporate risk, it was noted that the Council’s new chief executive officer and new deputy chief executive would both commence their employment at Redditch Borough Council on 31^st March 2025. Handover meetings were organised with the existing chief and deputy chief executives to ensure a smooth transition in responsibilities.

An overview of departmental risks was provided. It was noted that the number of departmental risks had reduced by one as compared to the previous quarter. Most departmental risks were linked to housing and compliance with statutory duties.

It was reiterated that the Council’s insurers were highlighting two major risks, the first being under-insuring of Council’s assets due to potential incomplete asset records in some areas, with the Council needing to ensure that assets were valued appropriately and records kept. Also highlighted by insurers was the risk of local authorities utilising artificial intelligence (AI) in such ways that decisions were being made without human intervention. It was noted that AI was not utilised by the Council for taking decisions.

A cyber security risk relating to AI chatbots appearing in Microsoft Teams video calls was highlighted. Members were asked to be vigilant when in Microsoft Teams video calls for any AI chatbot attendees. It was noted that Councillors and Officers should not participate in council meetings where these chatbots appear as attendees and, if such ‘virtual’ attendees appear on the video call, Members and Officers should ask that they be removed from the meeting, or otherwise leave the meeting. It was requested as an action that an email on AI chatbot risk be circulated to all elected members.

It was noted that the local government reorganisation would result in the liquidation of all district and county councils. In anticipation of the reorganisation, it was predicted that some district authorities would undertake community asset transfers (e.g. of local play areas, community centres etc.) to parish councils as well as voluntary and community organisations. This was intended to retain management of local assets within local communities. It was commented that some authorities within Worcestershire, such as Wyre Forest District Council, had been following such policy for a number of years.

A question was asked with regard to the transfer of assets to parish and town councils and about a possibility of establishing a Redditch Town Council. It was noted that would there be a transfer of an asset to a parish council, such as allotments or sports clubs, the asset become the responsibility of the parish council. It was noted that the local (parish/town) councils had no cap in place on raising precepts. It was restated that currently there was only one parish council within Redditch Borough, the Feckenham Parish Council, however, it was possible that Redditch Town Council could be established prior to the finalisation of local government reorganisation.

A question was raised about departmental risks linked to the corporate risk of non-adherence with the statutory inspection policy, in particular the potential consequences of not delivering to statutory policies, such as risk of loss of life. It was explained that this related mainly to departmental risks of annual gas safety inspections (HOU14) and to fire safety in blocks of flats and communal entrances (HOU22), and that Council performed well in ensuring inspections were being undertaken, but that there could be issues encountered if tenants did not allow access for inspections to be undertaken.

It was explained that in terms of Council’s insurance cover, if the Council could document that it followed the appropriate process in requesting permission and trying to access a property for gas and/or other inspection, then the Council would be covered by insurance. This necessitated logging any refusal from tenants to access the property to undertake an inspection.

The Head of Internal Audit commented that the areas discussed by the Committee in relation to this item were currently being audited by internal auditors. This included gas safety inspections and the Council’s cyber security arrangements, the latter audit being undertaken by a specialist auditor with expertise in cyber. The results of these audits would be reported to the July meeting of the Committee.

RESOLVED that

the present list of Corporate and Departmental Risks be noted.