Agenda item

107.1     The Board considered the updated risk register presented by SK. 

107.2     The Board considered the following risks:

·       Risk E3 – Employer Covenant, has been increased in likelihood, moving the overall risk score to a 6. This is because an increasing number of Local Authorities are at risk of a s.114 notice and not having sufficient cash to meet their expenditure. Pension payments would be expected to continue in such circumstances, but it is unclear what would happen in the event of a Local Authority not having sufficient funds to meet its liabilities. This rationale has also seen the suggested pre-mitigation likelihood increase.

·       Risk G1 – Key Person Risk, has increased. A member of the Officer leadership team has recently left, it is believed there may be delays in finding a suitable candidate for the vacant position and agency support for the role has not yet been successful. Officers feel this score is acceptable and that the mitigation plan is appropriate.

·       The definition of risk G5 – Data Breach, has been updated to make it clear that the risk does not just apply to GDPR, other Regulations exist which determine how data is handled and used. The Board noted that the Cyber Risk remains as a defined separate risk to mirror the Council’s position.

·       Risk G6 - Fraud, has seen its likelihood  reduced. Fund Officers have not seen material cases of fraud either against the Fund or its members. Mitigations in place are believed to be effective, however, it is recommended that the risk remain on the register as both a point of good practice and to show the potential pre-mitigation risk level.

·       Risk I6 – ESG, has seen both pre- and post- mitigation likelihood scoring increase. There is expected to be an increase in the level of political interest in this area which will mean it is more likely further action will need to be taken by the Fund.

·       Risk I7 – Climate Change has had its post mitigation risk increased for the same reasons.

·       Risk I4 – Investment Pooling, this has been reduced as there is now more information available and an operator is in place.

107.3   NS asked if Officers know which of the admitted bodies are dependent on council funding given the risk of cuts and financial insolvency in the sector. SK confirmed that this information is tracked however those bodies tend to be underwritten by the Council rather than directly funded by them. The risk is considered low and there are guarantees in place for funding.

107.4     The Board discussed reviewing the full Risk Register at least once a year to support the Risk Management policy and agreed it would be beneficial. It was noted that the Exempt Risk Register item now allows for better discussion as key issues can be drawn out as required. The Board has sight of the full risk register as part of the papers prepared for each meeting and any changes or increased monitoring is highlighted by officers.

107.5   The Board RESOLVED to note the report and to consider the full risk register in more detail at a future meeting.