To provide an update on the status of corporate risks at the end of Quarter 3 2025/26 (December 2025) and provide assurance that risks are being managed effectively across the council.

Councillor Stoddart cabinet member for finance and corporate services introduced the report.

The Quarter 3 review of the Corporate Risk Register was line with the Risk Management Strategy 2025/26 and Risk Appetite Statement approved by Cabinet in June 2025. The Corporate Leadership Team (CLT) reviewed the register (appendix A) at 31 December 2025 to update risk scores, assess the effectiveness of controls and mitigations, and consider emerging threats and opportunities. No new corporate risks were identified at Quarter 3.

All nine corporate risks were reviewed by their Risk Owners with CLT oversight. One risk score change was reported at Quarter 3: Corporate Risk R3 (SEND placement sufficiency) reduced from 16 to 12, reflecting additional capital investment approved for 2026/27, government announcements on DSG deficit funding, and wider SEND reforms.

The report confirmed that corporate risks continue to be monitored throughout the year by CLT and Cabinet, alongside Directorate, Service and Project risk registers. The Internal Audit Plan for 2025/26 was aligned to the refreshed Risk Strategy and approved by the Audit and Governance Committee in September 2025. Further planned activity includes risk management training, updates to guidance and intranet content, development of dashboard reporting, and inclusion of risk management arrangements within the Annual Governance Statement.

The report demonstrated strong governance and transparency in the management of corporate risks. Members were invited to endorse the report and its recommendations.

No comments from cabinet members. 

Group Leaders were invited to offer their views:

Independents for Herefordshire outlined their views and noted that:

Introduction of more regular risk reporting was welcomed and congratulated officers for strengthening the council’s risk management processes, including the oversight provided by the Audit and Governance Committee. However, concern was expressed that recent Internal Audit findings highlighted inconsistencies and weaknesses in officers’ understanding and application of risk management, particularly in relation to large capital projects.

Assurances were sought that all officers fully understood the current risk assessment framework, the actions required of them, and how this understanding was being tested and assured.

Concern was also raised regarding the timing and consistency of the risk assessment, noting that the Quarter 3 Corporate Risk Register reflected risk reductions linked to government announcements regarding the DSG deficit, which was made after the Quarter 3 reporting date. Clarification was requested on whether the risk register reflected a fixed Quarter 3 position or included subsequent developments, and how this approach was applied consistently.

The Green Group outlined their views and noted that:
It was positively noted that the risk for ‘SEND placement sufficiency’ was reduced from 16 to 12 and it was important to monitor the risks the council was facing as it moved through these challenging times

The Liberal Democrat Group outlined their views and noted that:
No comments. 

In response to comments made the cabinet members noted that:

It was confirmed that the risk register had been delivered to officers.  Regarding the Quarter 3 reporting date, this was a valid point however it was considered that the impact of the DSG announcement  in February 2026 was so significant, it was felt appropriate to include it in this update. 

The Leader of the Council concluded the discussions. Councillor Stoddart proposed the recommendations and Leader seconded for the decision before them which is that Cabinet:

That Cabinet

a)    Approves the updates to the Corporate Risk Register and actions to mitigate identified risks at Quarter 3 2025/26

b)    Notes the activity to embed the revised risk management strategy to strengthen risk management activity across the council at Corporate, Directorate and Service levels.