Agenda item

To consider a progress report on individual risks identified in the Council’s Strategic Risk Register.

The Committee considered a progress report in relation to the individual risks identified on the Strategic Risk Register, specifically in relation to the risk regarding ‘Inadequate Change Management’. The report was introduced by Mr Towers, Director of Governance and Partnerships, who outlined the controls and mitigation in place around the sub-risk ‘Unpredictability of legal rulings requiring an unexpected change’. He spoke about the recent restructure of Legal Services, as well as the progress made in training officers from other departments in the appropriate writing and structure of Court reports and procedures.

In relation to the new and developing controls of ensuring oversight of legal rulings which may have an impact on the Council, Mr Towers emphasised the importance of trying not to get into a situation which resulted in adverse legal rulings. He also explained that efforts were now being made to ensure that fully costed staff time in case preparation was reflected accordingly by Court costs, when these were awarded in favour of the Council.

Mr Towers went on to explain the importance of understanding how decisions made nationally can adversely impact decision making in a local context, in particular in relation to Children’s Services. To help mitigate this risk, he explained that the Council was a member of the North West Legal Consortium, being able to draw upon advice in respect of specialist areas, as and when appropriate.

Mr Jack, Chief Executive, spoke further around the impact of legal decisions in relation to Children’s Services that had a local impact, and that clarity was now being sought around the placement of children as a result of a decision taken in Scotland. He went on to speak about the controls and mitigation in relation to the sub-risk ‘Unfunded new burdens which the Council is required to deliver’. Mr Jack explained that the Council’s strength was built around collaborative working and the value of being members of the Association of Children’s Services and the Associate body of Children’s Services Directors. As a result of joined up working, the Council was better able to understand the legal and financial position around any changes that might occur. He explained further that membership of CIPFA also provided guidance and assistance in this area, together with close working with the Local Government Association (LGA) and North West Employers Organisation (NWEO).

The Committee asked for examples of decisions or changes to legislation which impacted the most on Council services in recent times. Mr Thompson, Director of Resources highlighted the National Living Wage, the Deprivation of Liberty Act and the Care Act as all having an effect. In relation to the National Living Wage, he explained that this had the most impact on third party care providers with whom the Council held contracts, rather than directly upon the Council. However, if the burden of the National Living Wage on a provider was such that they were no longer able to be sustainable, this would directly impact the Council in an adverse way.

The Committee asked about the change management framework in place to help manage changes and how that fitted in with the Council Plan. Mr Jack explained that transformational change had been ongoing for the last few years, requiring people to adapt and evolve on an ongoing basis. The Council had invested in significant support for staff throughout that period and emphasised the various support mechanisms that were in place.

A question was asked about the net score in relation to the legal rulings sub-risk and whether it was likely to be higher if the Council did not share services with the NHS. Mr Jack explained that the shared services arrangement had only been in place since January 2017 and so the current net score was not reflective of the new arrangements. However, he stressed that the shared service arrangement would provide additional resilience. Mrs Greenhalgh, Chief Internal Auditor added that the new arrangements would be taken into account on the Strategic Risk Register going forward.

Mr Jack explained that collaborative working would help to reduce risks in the future. He spoke about working closely with Lancashire County Council who had specialist lawyers able to examine the possibility of future occurrences, and the benefits of being able to access specialist employment law solicitors.

The Committee agreed to note the report.

Background papers:  None.