Risk Assessment 2018/19

1. RISK MANAGEMENT

Risk Management is a systematic approach to minimizing the Council’s exposure to risk. A risk management system includes various policies, procedures and practices that work in unison to identify, analyse, evaluate, address and monitor risk. Risk management information is used along with other corporate information, such as feasibility, to arrive at a risk management decision. Transferring risk to another party, lessening the negative effect of risk and avoiding risk altogether are considered risk management strategies. Examples of risk management practices include purchasing insurance, installing play equipment etc.

2. IMPACT AND PROBABILITY

Probability – A risk is an event that “may” occur. The probability of it occurring can range anywhere from just above 0% to just below 100%. (Note: It can’t be exactly 100%, because then it would be a certainty, not a risk. And it can’t be exactly 0%, or it wouldn’t be a risk.)
Impact – A risk, by its very nature, always has a negative impact. However, the size of the impact varies in terms of cost and impact on health, human life, or some other critical factor.

The Probability and Impact in the table below are shown as High (H), Medium (M) and Low (L).

The table contains five headings:

• Assets
• Internal Control
• Finance
• Compliance with Legislation
• Council

IDENTIFIED RISK POTENTIAL CONSEQUENCE OF RISK ASSESSMENT OF

 IMPACT (H/M/L)

LIKELIHOOD OF PROBABILITY (H/M/L) CONTROLS TO MANAGE RISK
ASSETS
Maintain an up-to-date register of Assets and any Investments Assets not properly reflected in Balance Sheet H L A complete and up to date fixed asset register
Loss or damage of assets owned by the Council Unable to use assets/expenses of replacement M L Adequate insurance of assets/liabilities

etc.

         
Legal liability arising from asset ownership/providing services to the public

 

Council not complying with requirements as trustees of village halls

 

Risk of litigation should individual become injured or third party property damaged

 

Trustees liable to legal cases and financial loss to Council

Closure of hall

Assets not properly protected.

M

 

 

 

H

 

L

 

 

 

L

 

Public liability insurance

 

 

 

Trustee Insurance

Council arrange hall insurance

Individual Councillors assigned to each hall to attend AGM, meetings etc.

Review of Hall accounts by RFO of Council

Hall report at each Council meeting

 

 

Loss of cash through theft or dishonesty Damage to Council reputation M L Internal financial controls/fidelity

guarantee insurance/budgetary controls/ monthly Bank statements and reconciliation/transactions reported to Council at each meeting

 

Loss of Council Records

 

 

 

 

 

Loss through theft, fire and damage/Damage to Council reputation M M Important papers etc. are kept in

a metal filing cabinet and have online and electronic copies

IT files are backed up regularly onto external hard drive

INTERNAL CONTROLS
Business Continuity Council/Clerk not being able to carry on business M L The Council has the complete requirement of Councillors minus one and so if even more than one Councillor is not able to continue, there would be the required quorum.

The Clerk has good links with other Clerks and records are kept up to date, so would be possible to get a Clerk to cover any long term absence.   

Financial Procedures Work not effected on time M M Sound Financial Procedures and Policies are

in place.

         
FINANCE
Annual Return Not submitted within time limit M L Accounting procedures more than adequate
         
Risk of precept or other VOG funds  being inadequate or unpaid Council may not be able to meet its objectives due to lack of funds M L Setting budget in support of the precept

and monitoring of all throughout the year

 

Reserves Adequacy L L Current reserves more than adequate
Poor management of funds Bank charges/loss of interest. L L Budgetary control/on line Bank

statement  and monthly control

Expenditure being incurred which is not within legal powers available Ultra Vires expenditure – illegal transaction/local electorate challenge/external audit investigation/public interest report M L Compliance with Legislation, Monthly

reporting to Council, detailed minutes,

Internal & External Audit. Clerks hours and salary monitored.

VAT requirements not being met Entitlement to reclaim VAT for a period being lost L L VAT is recorded separately in cashbook, ongoing VAT returns are made once threshold met.
         
COMPLIANCE WITH LEGISLATION        
 
Budget Not set L L Adequate Procedures in place, Budget set annually and monitored throughout year.
Employment Law requirements Risk of legal action from an employee H L Employee has a Contract of

Employment

Legal Powers Illegal activity L L Adequate processes which include

Standing  Orders etc.

Risk of a Complaint from an elector if a contract is not fairly awarded External auditor investigation leading to increased audit fees/public interest report/damage to Council etc. M L Standing Orders and financial regulations

in place dealing with the award of

contracts that are regularly annually at AGM

         
Annual Risk Assessment Identification of potential risks facing the Council M M Up to date Risk Assessment in place, reviewed annually at AGM
Health & Safety Legislation Non-compliance M M Adequate procedures in place and fully

documented

         
COUNCIL
Minutes/Agendas/Statutory Documents Non-compliance/Accuracy/

Legality

L L Fully documented minutes, reviewed by Council and approved at monthly meetings.

Compliance with regulations re agendas, statutory documents

Members Interests Conflict of Interest

Register of Members Interests

L L Existing procedures adequate – kept up to date on an ongoing basis, published electronically.
Member Training Lack of knowledge could lead to poor decision making M M Training considered on an ongoing basis

 

Code of Conduct

 

Members do not adhere to The Code of Conduct

 

 

 

H

 

 

L

 

Code of conduct adopted and implemented. Codes given to all councillors. Clerk advises Councillors where necessary.  All new Councillors are provided with copy and sign to say will adhere.