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Item 2 Risk Management Board 15 March 2016 NOTES OF THE RISK MANAGEMENT BOARD held on 19 January 2016 in P O Conference Room at FSHQ PRESENT: Officers: Chief Fire Officer, Paul Hancock (Chair) Deputy Chief Fire Officer, Mark Cashin Assistant Chief Fire Officer, Richard Ost Head of Legal and Democratic Services, Andrew Leadbetter Head of Finance, Paul Vaughan Head of Planning, Performance and Communications, Tim Bevington Corporate Programme Manager, Amanda Oliver 1 Apologies There were no apologies for absence received. 2 Notes from the previous meeting The notes of the previous meeting on 22 October 2015 with updates provided to the actions arising were presented to Risk Management Board (RMB). Matters arising The Corporate Programme Manager suggested that the Board review the agenda items for officer meetings to ensure that the items ‘Review of financial, IRMP and Blue Light Collaboration risks’ were appropriate for this Board as they were reviewed by other forums (i.e. IRMP Programme Board, Blue Light Programme meetings). The Head of Finance explained that the Authority’s Financial Regulations required the finance risk register to be reviewed on a quarterly basis. He suggested that he could report to the Board by exception after reviewing the risks within the Finance team. The Corporate Programme Manager provided the Board with an update on the latest position in relation to planning future Risk Management Training sessions for new Members of the Fire Authority. She explained that all Members were currently having a Personal Development Review (PDR) and once these were complete, any training requirements raised in the PDR in relation to Risk Management would be addressed. The Corporate Programme Manager advised the Board that a risk workshop was taking place this week to review all the risks identified by the Blue Light Programme. The Board confirmed that the Head of Legal and Democratic Services would be attending future Blue Light Programme meetings and would feed back any risks which required review by this Board. Notes Risk Management Board 19 January 2016 1 Item 2 Risk Management Board 15 March 2016 Action agreed: [1] That the Corporate Programme Manager review the process for reporting of risks and update the Risk Management Board Work programme if any changes are required; and [2] Confirm that an officer is attending to the Blue Light Risk Workshop meeting scheduled for Thursday 21 January 2016. UPDATE: Confirmed that Head of Legal and Democratic Services will attend this meeting Matters arising on Item 4 The Board noted that the next Crisis Management exercise was currently planned for 2018 and agreed that this should be changed to 2017. Action agreed: [1] The Deputy Chief Fire Officer to discuss timing of next Crisis Management exercise with the Head of Operational, Policy and Assurance with a view to a full test being planned for 2017. Matters arising on Item 3 [2] The Board discussed the identification of early warning indictors at a national and international level as to how the Service would assess the risk of certain national issues to the Service. (i.e. the decreasing cost of steel). Action agreed: [1] The Corporate Programme Manager to consider identification of early warning indicators and how national and international issues could be assessed as a risk to the Service 3 Terms of Reference – Risk Champions Group The Corporate Programme Manager referred to the Terms of Reference for the Risk Champions Group which was provided for the Boards information. The Board noted the terms of reference and queried whether the reference that the group were predominately senior level staff was consistent across the departments. The Corporate Programme Manager responded that she would review the list of Risk Champions and the Board requested that the list be circulated to Heads of Department to ensure consistency of the level of staff that were appointed as Risk Champion representatives for their department. Action agreed: [1] The Head of Planning, Performance and Communications to circulate the list of Risk Champions to Heads of Department asking them to consider whether the member of staff appointed was at a senior level and was consistent compared to other departments. Notes Risk Management Board 19 January 2016 2 Item 2 Risk Management Board 15 March 2016 4 Review Finance Risk Register The Head of Finance provided the Board with an update on the following risks on the Finance Risk Register: 848 DEPT Finance Finance RISK TITLE Clawback of funding by government as a result of the Authority's reserve level Failure of Mutual Insurance arrangement Target 868 COMMENTS/ACTIONS Current Score RISK REF NO 16 6 12 6 UPDATE: There was no specific government action or announcement during the settlement period. The Authority's reserve strategy will be updated and approved during the 2015/16 budget approvals process. The remaining capital element of ERP2 will cost around £15.5M to be funded from reserves and other significant capital and revenue spend has been ear marked. The situation will continue to be monitored Update from meeting: The Board discussed the current risk scores for this risk and agreed that the likelihood should be reduced. ACTION: [1] The Head of Finance to amend the risk score by reducing the likelihood. UPDATE: The new protection arrangements have been in place since 1 November. Regular reporting of the claims position has indicated that there are no significant emerging issues which might give rise to concern about the financial viability of the arrangements. Update from meeting: The Board discussed the sharing of information across the fire and rescue services, following the introduction of the new insurance arrangements. The Board considered whether the likelihood should be reduced but decided that the risk scores remained the same at present. ACTION: [1] Retain Notes Risk Management Board 19 January 2016 3 Item 2 Risk Management Board 15 March 2016 DEPT Finance RISK TITLE Safety Centre build budget overspend Target 832 COMMENTS/ACTIONS Current Score RISK REF NO 15 5 UPDATE: Policy Committee approved the Lymm Tender contract sum on 16th December 2015. ISG have been confirmed as the contractor for Lymm Fire Station and the Safety Centre. Update from meeting: The Board suggested that the risk score could be reviewed in light of the build contract and budget being approved for Lymm fire station and the Safety Centre. The Board noted that this risk would also be discussed and reviewed by the Land and Stations Group and IRMP Programme Board and that the review process should be streamlined. ACTION: [1] Retain 806 Finance Uncertainty of the future funding model for CFRS with the introduction of the outcome of the ESMCP 12 8 801 All (Cross Cutting) Claims from historic insurable events 15 10 Notes Risk Management Board 19 January 2016 UPDATE: Latest information is the programme will provide like for like replacement devices and requirements are being fed into the programme for CFRS. No further update on the ongoing commitment for revenue. Update from meeting: The Assistant Chief Fire Officer provided the latest position as indicative costs have now been received. ACTION: [1] Update the risk with the latest progress; and [2] Retain UPDATE: Head of Finance reviewed, this risk hasn't changed therefore to remain at current rating. ACTION: [1] The Head of Finance to contact Cheshire East for an update on the current case; and [2] Retain 4 Item 2 Risk Management Board 15 March 2016 DEPT Finance RISK TITLE Impact of Government austerity measures Target 722 COMMENTS/ACTIONS Current Score RISK REF NO 20 16 UPDATE: The Chancellor announced the results of the CSR in November 2015, and the detailed draft settlement was announced on December 17th. The settlement is provisionally for four years up to the end of the CSR in 201920. The result was that the Authority's Settlement Funding Assessment shows a reduction of around 25% over the period of the CSR. This was at the lower end of the Authority's planning spectrum, and leads to estimated savings in the Authority's MTFP of around £5.5m. ERP1, Organisational Review and ERP2 will be the main source of the savings. The CSR identified a review of Local Authority funding which will lead to a greater reliance on local funding (Council Tax and Business Rates), although this will require some rebalancing of the overall funding system. Until the details are announced it is difficult to judge the level of risk which this will bring to the Authority's future funding. ACTION: [1] Update progress following the fire services recent move to the Home Office and the potential impact; and [2] Retain RESOLVED: [1] 5 The Head of Finance to update the financial risks to reflect the potential impact of the fire services recent move to the Home Office Review of IRMP Project Risk Registers The Corporate Programme Manager advised the Board that the IRMP Project risks had all been reviewed at IRMP Programme Board and suggested that any exceptions that were identified be reported to the next Members / Auditors Risk Management Board meeting in March 2016. The Board agreed with the suggested approach to reporting the IRMP Project risks. Notes Risk Management Board 19 January 2016 5 Item 2 Risk Management Board 15 March 2016 RESOLVED That: [1] 6 the Corporate Programme Manager report IRMP Project Risks by exception at the next Risk Management Board meeting in March 2016. Blue Light Collaboration Programme Risk Register Update The Corporate Programme Manager advised the Board that, following the last meeting of the Risk Management Board in October, the risks had been reviewed by the Blue Light Programme. She explained that a further Risk Workshop was taking place later that week to review and help identify the key programme risks and confirm the risk mitigation plans required. The Board discussed a number of the Blue Light Programme risks, which were recorded on the Cheshire Planning System, and the impact on the Service if they materialised. The Board made the following observations: 879 DEPT Blue Light Collaboration Programme Blue Light Collaboration Programme Lack of external communications Target 873 RISK TITLE Loss of staff engagement and corporate memory Current Score COMMENTS/ACTIONS RISK REF NO 9 9 12 6 Update from meeting: The Board discussed that this risk would need to be reviewed and updated following the People Strategy being completed. ACTION: [1] Retain Update from meeting: The Board considered this risk and suggested it should be transferred to the Programme’s issue log rather than be recorded as a risk. ACTION: [1] Risk to be reviewed and discussed at the Risk Workshop on 21/01. Programme Office to update risk following this workshop. Notes Risk Management Board 19 January 2016 6 Item 2 Risk Management Board 15 March 2016 RISK TITLE Delay in building works at Clemonds Hey due to Great Crested Newts Target 893 DEPT Blue Light Collaboration Programme Current Score COMMENTS/ACTIONS RISK REF NO 16 8 Update from meeting: The Board queried the title of this risk as it was felt that there was a wider consideration in successfully gaining planning permission that should be included within the risk description. ACTION [1] Risk to be reviewed and discussed at the Risk Workshop on 21/01. Programme Office to update risk following this workshop. 891 Blue Light Collaboration Programme Staff failing vetting 15 8 Update from meeting: The Board noted that the People Strategy which was currently being drafted would address this risk. ACTION: [1] Retain 881 Blue Light Collaboration Programme Outsourcing ICT - legal challenge from suppliers 4 4 Update from meeting: The Board considered this risk and suggested it should be updated to reflect this is a more general risk relating to procurement. ACTION: [1] The Head of Legal and Democratic Services to update this risk. RESOLVED That: [1] the Blue Light Collaboration programme risks be updated as appropriate. 7 Review of Corporate Risk Register RMB considered the remainder of the Corporate Risk Register (excluding the financial risks which had been reviewed as part of agenda item 4) and made the following observations on the current Corporate risks: Notes Risk Management Board 19 January 2016 7 Item 2 Risk Management Board 15 March 2016 RISK REF NO. DEPT RISK TITLE Current Target COMMENTS/ACTIONS Score 376 Prevention and Protection Fire in Iconic Heritage Buildings. 16 9 720 Operational Policy & Assurance Industrial Action (National) 9 9 804 Planning, Performance & Communications Opposition to plans to change emergency response arrangements 8 6 UPDATE: Protection training day delivered on historic buildings (14/12/15) which included presentations from the fire advisors to Historic England and the National Trust. Cheshire West and Chester have agreed to re-introduce the Fire Board which will be an all officer group chaired by the Head of Place Quality for Chester. Risk reviewed no change. ACTION: [1] Retain UPDATE: The Industrial Action risk has reduced as the FBU have given assurances that there will be no strike action for at least 12 months as the legal challenges are progressed. ACTION: [1] Change this risk to a departmental risk UPDATE: The Policy Committee gave approval on December 16 for ISG to be the main contractor for the Lymm site- meaning the company is now responsible for delivering all of the remaining three new builds. ISG site management have already engaged with local residents at Powey Lane provided this is managed jointly with CFRS comms across all three sites then this should limit practical opposition going forward. The risk score is being reduced accordingly and it is proposed it should be closed in the New Year. ACTION: [1] Retain. Notes Risk Management Board 19 January 2016 8 Item 2 Risk Management Board 15 March 2016 RISK REF NO. DEPT RISK TITLE Current Target COMMENTS/ACTIONS Score 807 All (Cross Cutting) Competing demands on the organisation's resources due to changing external environment 20 9 830 Planning, Performance & Communications Completion of Safety Centre build within timeframes 15 5 835 Planning, Performance & Communications Safety Centre: lack of use from visitors 15 5 Notes Risk Management Board 19 January 2016 UPDATE: This risk is to remain as current rating due to the current Blue Light Collaboration. As this risk is a Corporate risk, it will be reviewed during RMB in January 2016. Update from meeting: The Board confirmed that the resource capacity plan should be completed in time for the next IRMP Programme Board meeting. ACTION: [1] Retain UPDATE: Policy Committee approved the Lymm Tender contract sum on 16th December 15. ISG have been confirmed as the contractor for Lymm fire station and the Safety Centre. ACTION: [1] Transfer this risk to the Land and Stations programme risk log; UPDATE: Successful stakeholder event run with more than 65 delegates. Stakeholder ebulletin to be distributed monthly from January 2016 once building contract signed. Safety Central branding now approved and in use on all comms materials, including a holding page for dedicated centre website. Full site to be launched in the new year. Work completed on schools database, direct marketing to go out by end of 2016 summer term once opening date is decided and deemed realistic. Twitter and Facebook pages now live and attracting followers. ACTION: [1] Retain 9 Item 2 Risk Management Board 15 March 2016 RISK REF NO. DEPT RISK TITLE Current Target COMMENTS/ACTIONS Score 871 All (Cross Cutting) Changing regional arrangements impacting budgets and governance 9 6 UPDATE: The Chancellor has announced the Liverpool City Deal, which will allow for the creation of a Mayor and the formalisation of the combined authority. In its current form, the deal will not include policing or fire and rescue services, although Halton will participate in the Deal. The arrangements are still likely to impact on the future development of subregional governance across Cheshire and Warrington and there is still the potential for policing and fire to be drawn into the City's arrangements as structures develop. CFRS and Cheshire's PCC will continue to work with colleagues in Liverpool, Halton and the SubRegion to maintain and strengthen relationships and working practices. ACTION: [1] Retain 889 Prevention and Protection Lack of commitment from housing providers to fit sprinklers. 16 9 Update from meeting: Officers planning to provide a Presentation to Members regarding progress on the Project and looking for recommendations as to next steps ACTION: [1] Retain RESOLVED: [1] That the Relevant Risk Owners review the list and actions arising as appropriate. Notes Risk Management Board 19 January 2016 10 Item 2 Risk Management Board 15 March 2016 Additional Actions Agreed: [1] That the Corporate Programme Manager investigate the implications of the proposal to change the frequency of the Risk Management Board to 6 monthly Member/Auditor meetings only and report back to the Board; and [2] That the Corporate Programme Manager and Head of Planning, Performance and Communications streamline the review of risks at the relevant project meetings and IRMP Programme Board. Notes Risk Management Board 19 January 2016 11