Agenda item

Report of the Chief Strategy Officer.

The Committee received a report of the Chief Strategy Officer updating Members on the City of London Corporation’s risk management which included the corporate and top rated red departmental risk registers.

The following points were noted:

a)    Risk titles - The Deputy Chair commented on the naming of new risks and noted that the titles were not always clear and amending the wording might provide greater clarity. The Chief Strategy Officer responded that this would be raised with risk owners and the Chief Officer Risk Management Group (CORMG). She explained that the current approach to titles and descriptions was intentional, following previous Committee feedback to avoid excessive detail to maintain a clear focus on the risk itself.

b)    Risk CR35 - A Member sought clarity on risk CR35, Unsustainable Medium-Term Finances – City Fund. They queried whether potential Government proposals on business rates redistribution could affect the current risk score and noted that the target score was set at half the current level, questioning the realism of achieving this by the end of the financial year given the constant trajectory. The Chamberlain advised that by March 2026, more information would be available on transitional relief within the settlement period, which was expected to provide financial cover for the next couple of years.

c)    Chief Risk Officer Network - A Member asked whether engagement with the Chief Risk Officer Network would continue following the Chief Strategy Officer’s attendance at their launch (hosted by the former Lord Mayor). The Chief Strategy Officer confirmed this and outlined two ways this was taking place: through the City of London Corporation as host, and through engagement with risk practitioners to integrate risk into business decision-making. The Chief Strategy Officer further advised that the Chief Risk Officer Summit would again be hosted by the City of London Corporation in May 2026, with continued input planned.

d)     Risk CR02 - A Member noted risk CR02, had previously been titled “Loss of Business Support” but was now described as “City Corporation’s role in promoting UK FPS.” The Member was concerned that the revised title appeared to represent a different risk. The Chief Strategy Officer explained that the changes to the corporate risk wording and rating had been reviewed and agreed by the Chief Officer Risk Management Group. She further confirmed that, at departmental and other risk levels, the wider approach to supporting business remained in place.

e)    Housing Revenue Account - The Deputy Chair questioned whether reference to the Housing Revenue Account (HRA) should appear in the public report. She noted that the risk had first been raised in October 2023 and commented that maintaining the risk between now and March 2026 appeared optimistic. The Chamberlain confirmed that it was appropriate to state in public session that there were three main risks to the HRA, with further detail provided in the non-public section. The three risks were outlined as follows:

f)     Risk CR39 - The Chief Strategy Officer reminded Members that, at the previous meeting, it had been noted that CR39 (Recruitment and Retention) was considered a legacy risk and that work had been undertaken to identify the key people-related risks. The Chief People Officer had led this work at both departmental and cross-Corporation level and had been invited to the Committee to provide an update from a risk perspective. Members were advised that the outcomes of this work would begin to appear in future reports.

The Chief People Officer introduced himself to the Committee and noted that CR39 (Recruitment and Retention) had not been reviewed for some time and explained that analysis of voluntary attrition showed a reduction from 9.6% to 9% though this varies across the organisation and should therefore be managed locally, as appropriate. He advised that, subject to discussions with the Corporate Services Committee, he intended to reposition the risk towards organisational change readiness, focusing on culture, change management, and preparing managers and staff for future developments (such as SAP implementation and Ambition 25), rather than concentrating on attrition figures.

A Member requested the latest sickness rates, and the Chief People Officer advised that this was another area where localised reporting would be beneficial, noting that seasonal factors and outdoor roles could affect figures. He reported that the organisational average was 6.4 days lost per FTE over the course of the year (based on a dashboard that was approximately one month old).

RESOLVED – That, the report be noted.