To provide an update on the status of corporate risks at the end of Quarter 4 2025/26 (March 2026) and provide assurance that risks are being managed effectively across the council.

 

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

 

It was noted that effective risk management was essential to delivering the priorities set out in the Council Plan, including the commitment to strengthen corporate and directorate-level risk management through the Corporate Risk Strategy.

 

Members were advised that the updated Risk Management Strategy 2025/26 and Risk Appetite Statement were approved in June 2025. The Corporate Leadership Team (CLT) reviewed the Corporate Risk Register as at 31 March 2026, considering risk scores, controls, mitigations, and any emerging risks and opportunities linked to the Council Plan 2024-28. No new corporate risks were identified for inclusion at Quarter 4.

 

The Committee noted that all nine corporate risks had been reviewed. Risk 7, relating to the council’s ability to respond to a significant emergency, increased from a score of 9 to 12 due to the growing threat posed by cyber security risks and the potential impact on service delivery, public confidence, and finances.

 

It was reported that CLT is continuing to embed the revised risk management approach across the organisation. The 2025/26 Internal Audit Plan had been reviewed to align with the updated Risk Management Strategy and Corporate Risk Register and was approved by the Audit and Governance Committee in September 2025.

 

It was noted that risk management arrangements will continue to be monitored through the council’s governance framework, with relevant matters to be reported through the 2025/26 Annual Governance Statement to the Audit and Governance Committee.

 

The report and its recommendations were commended for approval.

 

Comments from cabinet members:

 

None

 

Group Leaders were invited to offer their views:

 

The representative for Independents for Herefordshire outlined the views of their group and raised that:

 

The clearer presentation of changes within the risk register was welcomed and asked whether future reports highlight amendments more clearly.

 

There was an outstanding issue regarding member training on the Corporate Risk Register.

 

Questions were raised about whether there was evidence that the Corporate Risk Register was improving decision-making across the council, acknowledging that the benefits of risk management can be difficult to measure. The member invited Cabinet's views on the effectiveness of the register in supporting informed decisions.

 

Particular concern was expressed regarding Risk 4 (Failure to deliver capital and major projects within identified resources and planned timeframes resulting in significant overspend and reduced project outcomes), which the member considered to be the most significant threat facing the council. Clarification was sought on the actions and mitigations that had been implemented since the previous report, noting changes to the narrative and references to external support and project assurance activity. The member queried whether the reported actions were sufficiently addressing the risk and whether progress could be demonstrated over the reporting period.

 

The member also invited Cabinet members to comment on which corporate risks they regarded as the most significant and which posed the greatest concern to them.

 

The representative for Liberal Democrat Group outlined the views of their group and raised that:

Risk R8 (Risks within the West Mercia community area) was highlighted, and it was asked whether Cabinet would review, with partner organisations, the county’s preparedness to respond to significant heat events and ensure that appropriate mitigation and response plans are in place both for the council and across the wider county.

 

The Green Group Leader outlined the views of their group and raised that:

 

Concerned was expressed that the Corporate Risk Register did not appear to fully reflect the risks arising from delays and slippage in the delivery of major programmes and projects. Particular concern was raised regarding Risk R4, with the view that the register should more accurately capture the potential financial and delivery risks associated with significant capital projects and the borrowing required to support them. It was suggested that the current risk profile may understate these challenges.

 

The True Independents Leader outlined the views of their group and raised that:

 

Was present for this item but had no comments. 

 

In response to the comments made:

 

In response to questions about whether the correct risks had been identified, it was stated that the council was satisfied that the Corporate Risk Register appropriately captured the key corporate risks and that risks were kept under continual review. Assurance was provided that these risks remained at the forefront of decision-making and project delivery.

 

Regarding major incidents, including flooding and severe weather events, it was noted that established emergency planning arrangements are in place, including Gold and Silver command structures and joint working with the relevant emergency services and partner organisations.

 

It was clarified that Councillor Proctor was referring to R7 (Inability to respond adequately to a significant emergency affecting ability to provide priority services) in their comments and was requested to provide details of any incidents outside of the meeting. 

 

It was noted that the council’s nine corporate risks had been reviewed and validated, with independent assurance from Kerry Diamond that nine risks represented an appropriate number for a Corporate Risk Register and reflected the council’s highest-level strategic risks.

 

It was further confirmed that issues relating to extreme heat events would be considered within the scope of Risk R7 as part of ongoing risk monitoring and review arrangements.

 

Members were advised that risks were continually monitored and reassessed, with the council remaining alert to emerging issues. It was also explained that risk management plays an important role in informing decision-making across the organisation and was regularly used to support the delivery of council priorities and projects.

 

In response to comments regarding the brevity of the discussion, it was explained that Cabinet members had already considered and discussed the Corporate Risk Register in detail prior to its presentation at Cabinet and that risk management is reviewed regularly. Members were therefore asked not to view the length of the discussion at the meeting as a reflection of the importance Cabinet places on risk management.

 

The relative significance of the corporate risks was commented on, noting that Risk R4 was not considered the most concerning risk. Instead, Risk R2 (Demand for client-based services continues to increase resulting in increased budget pressures and poor outcomes for those people in receipt of our services), and the resulting budget pressures, was highlighted as a major area of concern due to rising demand, particularly in adult social care, and insufficient government funding.

 

Further concerns were raised regarding the financial pressures associated with the Dedicated Schools Grant deficit and the requirement to deliver significant savings targets. It was stated that, collectively, these financial and service demand pressures represented a greater risk to the council than potential cost increases associated with major capital projects.

 

The Leader of the Council concluded the discussions. Councillor Stoddart proposed the recommendations, with the Leader seconding.  The Leader directed that the decision to be put before Cabinet is:

 

That Cabinet

 

a) Approves the updates to the Corporate Risk Register and actions to mitigate identified risks at Quarter 4 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.

 

It was confirmed the next meeting of cabinet was 30 July 2026 at 2:30pm.

 

Meeting finished at: 16:05. 

 

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