December 2010

Under the coalition government, Comprehensive Area Assessments (CAA) have been scrapped and this is putting additional pressure on Risk Management departments within Local Authorities to prove how their role is so imperative to the organisation.

A number of our clients have asked us for assistance for strengthening the business case to retain a proper risk management function within their local authority. We don't have all the answers but sometimes it helps to ask the right questions.

● Have changes to the CAA fundamentally changed the reasons why risk management was undertaken within your Local Authority?

● Have the risks previously identified disappeared or just the risk of being caught not doing it?

● The financial sector under estimated the importance of risk management - do you suppose they wish they had done things differently?

● In times of financial constraint is it a good idea to remove a mechanism for identifying and managing potential threats to projects, reputation, finance etc?

● Which will enable you to deliver better services?

          - calculating how many people are happy with these services or

          - mitigating the risks affecting your ability to deliver these services effectively?

● When, in anyone's book (apart from the Fire Service) has 'fire fighting' been seen as a good management discipline?

● Risk management is a core business process for the private sector. Shouldn't it also be so for local authorities when so tied to public finances?

●  Why continue robust risk management? It's just good business practice!

AND if you don't get reasonable answers to these then how about trying...

● Risk management continues to be a statutory part of the Accounts and Audit Regulations 2003

● Risk management also makes up part of the Corporate Governance Statement signed by both the CEX and Council Leader

● CIPFA makes strong guidance on the importance of risk management pertaining to the role and function of Audit Committee's.

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