Report of the Chamberlain
The Board considered a report of the Chamberlain proposing a Risk Register for the Financial Investment Board, highlighting key risks for review. The Board noted that this was the first time the Financial Investment Board had considered a risk register. Board Members suggested that ‘heat maps’ could be included with the risk register in future to illustrate any changes, and that the risk register should be reported to the Board every six months for review.
The Board agreed to exclude the public from the meeting and discuss a point raised by a Board Member on the grounds that the discussion would involve the likely disclosure of exempt information as defined in paragraph 3 of Schedule 12A of the Local Government Act.
The Board noted the recommendations to the report, and that the risk register would be brought back to the next meeting for confirmation following feedback from Members.
A Member suggested that there was a risk of action being taken with investments without the authority of the Board, and that with regards to external risks, the Board consider its mechanisms for acting quickly in response to changing circumstances, as fund managers were able to do. The Chamberlain advised that for any changes to fund managers the Comptroller & City Solicitor and any incoming fund manager will require signed authority such as minutes of the Board meeting confirming this. There are also the City’s urgency procedures but as the Board met regularly throughout the year, it was hoped that this would not be required unless in exceptional circumstances.
A Member suggested that the risk register be kept high-level, and the Board needed to be careful not to confuse risks with controls. The Chamberlain confirmed that the scale of each risk was between 1 and 16 and the register used was the corporate template. The Board needed to focus on what was important at a strategic level to reach its target risks.
RESOLVED – That the Financial Investment Board:
a) Review the risks and actions proposed for the Financial Investment Board’s Risk Register, and ask officers to amend the risk register based on the feedback provided by Members, before bringing it back to the next meeting for approval.