Appendix 1 - Strategic Risk Annual Report
Perth and Kinross Council · 29 June 2026
Back to Audit and Risk Committee — 29 June 2026 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
Heatmap Report PKC Print Date: 15-Jun-2026
Page 2
PKC Heatmap Report HEATMAP Probability Very High High Medium Low Very Low Insignificant Minor Moderate Major Critical Impact Priority 1 Priority 2 Priority 3 Priority 4 Inherent Residual 15-Jun-2026 Page 2 of 24
Page 3
PKC Heatmap Report RISK SUMMARY Strategic Risk No. Risk Event Inherent Residual Trend 1 SR-01 - We fail to protect children and vulnerable adults from harm Priority 1 Priority 1 Comments: SMT workshop held to review the risk and other elements such as impact, controls and actions. Risk has now been updated. Updated actions and included additional work around Public Protection Strategy and added new control appointment of CSWO. Scoring revised following review. 2 SR-02 - We fail to mitigate or reduce the impact of climate change in Perth and Kinross within the scope of our control and resources Priority 1 Priority 1 Comments: Circular Economy Strategy added as a control, andl causes and consequences added. 3 SR-03 - The economy in Perth & Kinross does not grow in an inclusive and sustainable way Priority 1 Priority 1 Comments: 1 control upgraded from improvement required to effective and 2 controls from adequate to effective following progress of actions taken to strengthen control environment in 2025/26. 4 SR-04 - Our actions to tackle poverty and address the inequalities gap within Perth & Kinross are ineffective Priority 1 Priority 1 Comments: Anti-Poverty Strategy endorsed by Council and approved by Anti-Poverty Task Force. Action Plan has been developed from the strategy and thematic sub groups established. Council Poverty Board has met regularly this year providing stronger internal Governance. New action added to reflect the development of the Fairer Futures programme, funded by SG to develop an place based and evidence led approach to tackling child poverty. Probability of overall risk remains the same despite positive downturn in Child Poverty figures as external factors around energy prices and cost of living are still a major influence. Risk actions also reviewed 5 SR-05 - The Transformation and Change programme does not meet expected outcomes and deliver the future, sustainable public services that our communities need within available resources Priority 1 Priority 2 Comments: Risk is now changing slightly to take into consideration the move from phase 2 to phase 3 and the possible consolidation of business improvement / programme management office teams. There has been a very slight delay in implementation due to the need for some structural change in terms of SL portfolios. 6 SR-07 - Our operational response (in a non-public health related emergency situation) is inadequate or ineffective Priority 1 Priority 3 Comments: Full review of controls and overall residual scores carried out. 7 SR-08 - There are insufficient financial resources to provide the services that our communities need. Priority 1 Priority 1 Comments: Reviewed post budget approval. New control added around no purchase, no pay in line with updated financial regulations and safeguarding policy. 8 SR-09 - We have insufficient capacity and skills within the workforce to deliver the services that our communities need Priority 1 Priority 2 Comments: Reviewed. Delivery actions and performance updates are provided cyclically through the People and Culture Strategy and continue to be monitored closely by SLT and the Workforce Planning Board. 9 SR-010 - Council buildings and other assets are not safe, fit for purpose or providing best value Priority 1 Priority 2 Comments: Reviewed - 30 Year Plan & Status Reports In Progress Awaiting BV Audit Outcome 15-Jun-2026 Page 3 of 24
Page 4
PKC Heatmap Report No. Risk Event Inherent Residual Trend 10 SR-011 - The health and safety of staff and the public is not adequately protected Priority 1 Priority 3 Comments: No changes to scoring, actions updated. 15-Jun-2026 Page 4 of 24
Page 5
PKC Heatmap Report RISK OVERVIEW Strategic Risk SR-01 We fail to protect children and vulnerable adults from harm Risk Categories: People / Human Resource, Audit, Legislation and Compliance Risk Owner: Arun Singh Secondary Responsible Person(s): Sharon Cooper Last Reviewed Date: 08 May, 2026 Next Review Date: 31 Aug, 2026 Organisation > Perth and Kinross Health and Social Care Partnership > Integrated Health and Care - Adults Organisation > Perth and Kinross Health and Social Care Partnership > Children, Families & Justice Organisation > Chief Executive > Education & Learning I Inherent Risk Assessment R Residual Risk Assessment Probability I R Impact Individual Heatmap Effectiveness of control R Effective Risk Appetite OUT OF APPETITE The appetite benchmark score is 5.00 for this category Causes • Lack of continuous improvement activity to provide assurance (i.e. self evaluation, lived experience) • Failure to learn from learning reviews undertaken in other areas across the UK • Ensuring staff have an active PVG membership in place • Lack of training and development opportunities to identify and assess risk • High/increased workload and/or limited staff capacity affecting quality of recording • Organisational and operational functional changes that impact staffing, systems and time • Evolving and complex legislative landscape • Failure to align and prioritise budgets and resources • Failure to develop a sense of collective responsibility (both within and out-with the Council) • Inadequate/ poor quality data and business intelligence (e.g. AI transcriptive tools) • Incohesive partnership working (eg ineffective communication and data sharing) • Increasing vulnerabilities and complexities in terms of need across our communities Consequences • Incomplete or inaccurate case records affecting decision-making • Increased safeguarding risk due to missed or unidentified concerns • Ineffective or delayed interventions resulting in unresolved or escalating risk • Increased pressure on council services and other parts of the public sector • Increasing failure demand and resources wasted on ineffective interventions • Legal /financial claims and penalties for breach of duties and/or injury • Poorer health and social wellbeing outcomes for communities • Reputational damage/loss of public confidence • Significant harm to individuals Residual Controls Control Code Control Title Risk Control Owner Control Effectiveness Next Review Date CTL-74.1 PKC Child Protection Processes/Policies/Procedures Arun Singh Effective 04 May, 2027 CTL-01.1 Multi-agency public protection Chief Officers Group Arun Singh Effective 04 May, 2027 CTL-02.1 PKC Adult Support Protection Processes/Policies/Procedures Arun Singh Effective 04 May, 2027 CTL-03.1 Multi-agency Adult Protection Committee Arun Singh Effective 04 May, 2027 CTL-04.1 Multi-agency Child Protection Committee Arun Singh Effective 04 May, 2027 15-Jun-2026 Page 5 of 24
Page 6
PKC Heatmap Report Residual Controls Control Code Control Title Risk Control Owner Control Effectiveness Next Review Date CTL-06.1 Robust internal governance and assurance systems Arun Singh Effective 04 May, 2027 CTL-435.1 Multi Agency Public Protection Arrangements (MAPPA) Arun Singh Effective 04 May, 2027 CTL-436.1 MARAC - Multi-Agency Risk Assessment Conference Arun Singh Effective 04 May, 2027 CTL-437.1 Social Work Governance and Assurance Group Arun Singh Effective 04 May, 2027 CTL-438.1 Learning and Development Offer to Workforce Arun Singh Effective 04 May, 2027 Residual Solutions Action Title Responsible Officer Action Status % Completed Target Completion Date Performance Compile Adult Protection Annual Report 2024/25 and Improvement Plan 2025/26 and present to the Adult Protection Committee, Chief Officers Group, Council and Integrated Joint Board Arun Singh Completed 100 31 Dec, 2025 Compile Adult Protection Annual Report 2025/26 and Improvement Plan 2026/27 and present to the Adult Protection Committee, Chief Officers Group, Council and Integrated Joint Board Arun Singh Not Started 0 31 Dec, 2026 Compile the Child Protection Standards and Quality Assurance Report 2024/25 and present to the Child Protection Committee, Chief Officers Group and Council Arun Singh Completed 100 31 Dec, 2025 Compile the Child Protection Standards and Quality Assurance Report 2025/26 and present to the Child Protection Committee, Chief Officers Group and Council Arun Singh Not Started 0 31 Dec, 2026 Develop a Public Protection Strategy based on priorities identified at Public Protection Evaluation session across all public protection areas Arun Singh Completed 100 31 Mar, 2026 Develop Children, Families & Justice Service Plan Arun Singh In Progress 50 30 Sep, 2026 15-Jun-2026 Page 6 of 24
Page 7
PKC Heatmap Report SR-02 We fail to mitigate or reduce the impact of climate change in Perth and Kinross within the scope of our control and resources Risk Categories: Environment, Audit, Legislation and Compliance Risk Owner: Fraser Crofts Last Reviewed Date: 09 Apr, 2026 Next Review Date: 09 Jul, 2026 Organisation > Depute Chief Executive > Environment & Infrastructure I Inherent Risk Assessment R Residual Risk Assessment Probability I R Impact Individual Heatmap Effectiveness of control R Effective Risk Appetite OUT OF APPETITE The appetite benchmark score is 9.00 for this category Causes • A lack of leadership and accountability • Energy inefficiency • Failure to develop a sense of collective responsibility (both within and out-with the Council) • Failure to influence culture and behaviour • Failure to respond appropriately to evolving statutory duties & responsibilities • Inadequate planning/ failure to prioritise and align appropriate resource • Inadequate resources and capacity • Ineffective /inefficient asset management • The current economic climate Consequences • Detrimental impact on environmental, health and wellbeing outcomes across our community • Failure to meet our climate reduction Futures and responsibilities, with potential legislative penalties • Failure to reduce carbon footprint • Increased inequalities across communities • Increase in occurence of adverse weather events • Inflated investment requirements due to not taking early action • Reputational damage/loss of public confidence Residual Controls Control Code Control Title Risk Control Owner Control Effectiveness Next Review Date CTL-62.1 Climate Change Strategy and Action Plan Fraser Crofts Effective 31 May, 2027 CTL-07.1 Climate Change and Sustainability Committee and Convenor's meeting Fraser Crofts Effective 31 May, 2027 CTL-08.1 Climate Change & Sustainability Group Fraser Crofts Effective 31 May, 2027 CTL-250.1 Impact and Value Assessment Tool Divindy Grant Adequate 31 May, 2027 CTL-406.1 Circular Economy Strategy Fraser Crofts Adequate 31 May, 2027 CTL-78.2 Corporate Plan 2022-27 Greg Boland Adequate 31 May, 2027 Residual Solutions Action Title Responsible Officer Action Status % Completed Target Completion Date Performance Carbon Literacy Training for Elected Members and Senior Officers Divindy Grant In Progress 62 30 Sep, 2026 Develop Cumulative Climate Impact Assessment of Budget to be taken to Climate Change and Sustainability Committee Divindy Grant In Progress 65 31 Dec, 2026 15-Jun-2026 Page 7 of 24
Page 8
PKC Heatmap Report Action Title Responsible Officer Action Status % Completed Target Completion Date Performance Engage and develop strategy development processes to ensure climate change is considered and embedded in these Louisa Dott Completed 100 31 Mar, 2026 Review of membership and participation in Climate Change Commission Pete Leonard Completed 100 30 Sep, 2025 15-Jun-2026 Page 8 of 24
Page 9
PKC Heatmap Report SR-03 The economy in Perth & Kinross does not grow in an inclusive and sustainable way Risk Categories: Finance, People / Human Resource Risk Owner: Serge Merone Last Reviewed Date: 28 May, 2026 Next Review Date: 28 Nov, 2026 Organisation > Depute Chief Executive > Economy, Development & Planning I Inherent Risk Assessment R Residual Risk Assessment Probability I R Impact Individual Heatmap Effectiveness of control R Effective Risk Appetite OUT OF APPETITE The appetite benchmark score is 9.00 for this category Causes • A change in policy direction and potential funding impacts • Failure to resource interventions to support economic development • Failure to identify relevant factors impacting local economic resilience and develop strategies to support local economy • Failure to maximise on opportunities presented through the Tay Cities Deal and other UK/SG funds • The current economic climate, including the fallout from the Russia-Ukraine war, global supply chain issues and the Cost of Living Crisis Consequences • Stagnation in wage growth • A lack of positive destinations for school leavers • Increased business failures • Decline in housebuilding, business expansion and investment • Increased failure demand and resources being wasted on ineffective interventions • Increased poverty/inequalities across our communities • Population and economic decline • Rising unemployment Residual Controls Control Code Control Title Risk Control Owner Control Effectiveness Next Review Date CTL-91.1 Perth & Kinross Economic Partnership Serge Merone Effective 30 Apr, 2027 CTL-14.1 Regional Economy Strategy Serge Merone Effective 30 Apr, 2027 CTL-16.1 UK Shared Prosperity Fund Serge Merone Adequate 30 Apr, 2027 CTL-17.1 Scottish Local Authorities’ Economic Development (SLAED) Group Serge Merone Effective 30 Apr, 2027 CTL-18.1 Local Employability Partnership Serge Merone Effective 30 Apr, 2027 CTL-19.1 Tay Cities Deal and Partnership Serge Merone Effective 30 Apr, 2027 CTL-86.1 Ongoing monitoring of local economy through relevant data Serge Merone Effective 30 Apr, 2027 Residual Solutions Action Title Responsible Officer Action Status % Completed Target Completion Date Performance Accelerated delivery of step change projects Serge Merone Completed 100 31 Mar, 2026 Deliver key impact projects Serge Merone In Progress 10 30 Mar, 2030 Develop place-based targeted skills and employability interventions Steven MacDonald In Progress 10 31 Mar, 2027 15-Jun-2026 Page 9 of 24
Page 10
PKC Heatmap Report Action Title Responsible Officer Action Status % Completed Target Completion Date Performance Review of external employability activities (following internal transformation review) including Local Employability Partnership Serge Merone Completed 100 31 Mar, 2026 15-Jun-2026 Page 10 of 24
Page 11
PKC Heatmap Report SR-04 Our actions to tackle poverty and address the inequalities gap within Perth & Kinross are ineffective Risk Categories: People / Human Resource, Finance Risk Owner: Greg Boland Secondary Responsible Person(s): Alan Taylor,David MacLuskey,Serge Merone Last Reviewed Date: 05 May, 2026 Next Review Date: 28 Aug, 2026 Organisation > Depute Chief Executive > Economy, Development & Planning Organisation > Depute Chief Executive > Environment & Infrastructure Organisation > Chief Executive > Education & Learning Organisation > Chief Executive > Strategic Planning, People & Performance Organisation > Depute Chief Executive > Customer & Digital Services I Inherent Risk Assessment R Residual Risk Assessment Probability I R Impact Individual Heatmap Effectiveness of control R Adequate Risk Appetite OUT OF APPETITE The appetite benchmark score is 5.00 for this category Causes • Failure to align and prioritise budgets with locality and local demographic needs • Failure to plan and resource effective interventions to address needs • Incohesive partnership working • Low wage and in work poverty • Rising costs (including food, fuel, housing) • The current economic climate and cost of living crisis Consequences • An increasing demand for services, which the Council may be unable to meet • A widening of the inequalities gap within Perth and Kinross • Poor or reduced health, social and economic wellbeing outcomes within our communities • Pressure on statutory services • Reduction in Council income Residual Controls Control Code Control Title Risk Control Owner Control Effectiveness Next Review Date CTL-18.2 Local Employability Partnership Serge Merone Effective 31 May, 2027 CTL-92.1 Future for Families Project Steven MacDonald Effective 31 May, 2027 CTL-253.1 Transformation and Change Projects governed by SPP&P Greg Boland Adequate 01 May, 2027 CTL-21.1 Joint Welfare Reform Steering Group Alan Taylor Adequate 31 May, 2027 CTL-22.1 Governance and internal control arrangements Greg Boland Adequate 30 Apr, 2027 CTL-25.1 Local Child Poverty Action Plan Greg Boland Effective 30 Apr, 2027 CTL-24.1 Welfare Rights - income maximisation Alan Taylor Effective 01 May, 2027 CTL-20.1 Local Outcomes Improvement Plan Greg Boland Adequate 30 Apr, 2027 CTL-246.1 Poverty Theme Board Greg Boland Adequate 01 May, 2027 CTL-76.1 Anti-Poverty Task Force Greg Boland Improvement Required 30 Apr, 2027 CTL-77.1 Poverty Working Group Greg Boland Adequate 01 Apr, 2027 15-Jun-2026 Page 11 of 24
Page 12
PKC Heatmap Report Residual Solutions Action Title Responsible Officer Action Status % Completed Target Completion Date Performance Developing and testing a Wellbeing Budgeting approach around the Poverty priority Paul Smith In Progress 70 30 Sep, 2026 Development of a cash-first approach Paul Smith Completed 100 31 Dec, 2025 Development of an Anti-Poverty Task Force Action Plan Paul Smith In Progress 70 30 Sep, 2026 Development of Good Food Strategy in relation to Food Insecurity Pete Leonard In Progress 10 01 Apr, 2028 Fairer Futures Programme Paul Smith In Progress 55 30 Mar, 2027 Further refine and expand upon PK insights proof of concept Paul Smith Completed 100 26 Sep, 2025 15-Jun-2026 Page 12 of 24
Page 13
PKC Heatmap Report SR-05 The Transformation and Change programme does not meet expected outcomes and deliver the future, sustainable public services that our communities need within available resources Risk Categories: Transformational, Audit, Legislation and Compliance, Finance, People / Human Resource Risk Owner: Charlene Guild Last Reviewed Date: 14 May, 2026 Next Review Date: 31 Aug, 2026 Organisation > Chief Executive > Projects & Programmes I Inherent Risk Assessment R Residual Risk Assessment Probability I R Impact Individual Heatmap Effectiveness of control R Effective Risk Appetite WITHIN APPETITE The appetite benchmark score is 15.00 for this category Causes • Failure to develop and expand community connections and relationships • Failure to effect the necessary cultural change within the organisation to implement new ways of working • Failure to engage effectively local communities to better identify need • Failure to prioritise/align financial resources to need • Inadequate local population data and business intelligence • Incohesive partnership working (eg ineffective communication and data sharing) • Insufficient resources and capacity Consequences • A widening of the inequalities gap within Perth and Kinross • Inability to sustain current service delivery within future resource allocation • Failure to comply with statutory duties • Increased failure demand and resources being wasted on ineffective interventions • Lack of confidence in Council / reputational loss • Poor or reduced health, social and economic wellbeing outcomes within our communities Residual Controls Control Code Control Title Risk Control Owner Control Effectiveness Next Review Date CTL-251.1 Transformation & Change Communications and Engagement Plan Charlene Guild Adequate 03 May, 2027 CTL-252.1 Programme Management Office Project Monitoring Process Charlene Guild Effective 02 May, 2027 CTL-84.1 Transformation and Change governance structures Charlene Guild Adequate 03 May, 2027 CTL-29.1 Transformation and Change Strategy and Implementation Plan Charlene Guild Adequate 03 May, 2027 CTL-78.1 Corporate Plan 2022-27 Greg Boland Adequate 03 May, 2027 CTL-79.1 Equalities Mainstreaming Report Elaine Ritchie Effective 03 May, 2027 CTL-82.1 Financial Management and internal control Scott Walker Effective 14 May, 2027 Residual Solutions Action Title Responsible Officer Action Status % Completed Target Completion Date Performance Development and roll out of locality based, multi- disciplinary working groups Paul Smith In Progress 60 31 Mar, 2027 Further development activity with CPP Louisa Dott In Progress 75 30 Dec, 2026 Implementation of Phase 3 Transformation & Improvement Team Charlene Guild In Progress 50 30 Sep, 2026 15-Jun-2026 Page 13 of 24
Page 14
PKC Heatmap Report Action Title Responsible Officer Action Status % Completed Target Completion Date Performance Introduction of a universal service design approach across PKC in relation to Transformation & Change activity Charlene Guild In Progress 80 31 Mar, 2027 Mapping of interdependencies across the Transformation & Change Programme Charlene Guild Completed 100 31 Dec, 2025 Review of T&C Strategy (2022 - 27) to align with Corporate Plan key priorities Charlene Guild Completed 100 31 Oct, 2025 15-Jun-2026 Page 14 of 24
Page 15
PKC Heatmap Report SR-07 Our operational response (in a non-public health related emergency situation) is inadequate or ineffective Risk Categories: Property and Assets, People / Human Resource Risk Owner: Greg Boland Secondary Responsible Person(s): Elaine Ritchie Last Reviewed Date: 12 Nov, 2025 Next Review Date: 31 Aug, 2026 Organisation > Chief Executive > Strategic Planning, People & Performance Organisation > Depute Chief Executive > Housing & Communities I Inherent Risk Assessment R Residual Risk Assessment Probability I R Impact Individual Heatmap Effectiveness of control R Effective Risk Appetite OUT OF APPETITE The appetite benchmark score is 5.00 for this category Causes • A lack of leadership and accountability • Lack of preparedness to severe weather/emergencies • • A lack of resources (people) to properly plan, co-ordinate implement an appropriate response as per action plan • Failure to test civil contingency/business continuity plans and processes • Inadequate civil contingency/business continuity plans to cover relevant emergency situations • Inadequate local population data and business intelligence • Incohesive partnership working • Insufficient resources and capacity Consequences • Poor staff well-being (stress, burnout etc) leading to Retention challenges & reduced productivity • Damage to property and infrastructure • Damage to the environment • Detrimental impact on local economy • Harm to health and wellbeing • Legal claims and/or financial costs and penalties • Potential injury/fatality • Reputational damage/loss of public confidence • Unable to deliver essential services Residual Controls Control Code Control Title Risk Control Owner Control Effectiveness Next Review Date CTL-33.1 Tayside Local Resilience Partnership Thomas Glen Effective 30 Apr, 2027 CTL-34.1 Effective network of community support/response Elaine Ritchie Effective 30 Apr, 2027 CTL-35.1 Cohesive partnership working in place to identify and support vulnerable people Sue Terras Adequate 30 Apr, 2027 CTL-31.1 Business Continuity / Contingency plans Sue Terras Effective 30 Apr, 2027 CTL-32.1 Appropriately skilled staff at Strategic, Tactical and Operational levels Sue Terras Effective 23 Apr, 2027 CTL-94.1 Emergency response structure Thomas Glen Effective 30 Apr, 2027 CTL-247.1 North of Scotland Resilience Partnership Thomas Glen Effective 30 Apr, 2027 CTL-248.1 Annual Programme of Training for Elected Members, ELT and SLT and others Sue Terras Effective 23 Apr, 2027 CTL-87.1 Concurrent Events document Sue Terras Effective 30 Apr, 2027 Residual Solutions 15-Jun-2026 Page 15 of 24
Page 16
PKC Heatmap Report Action Title Responsible Officer Action Status % Completed Target Completion Date Performance Implement recommendations arising from Internal Audit Sue Terras In Progress 90 30 Jun, 2026 Maintain currency of plans for foreseeable incidents Greg Boland In Progress 80 31 Dec, 2026 Updating of Concurrent Events Document Greg Boland Completed 100 28 Feb, 2026 Work with IT and HSCP to design and implement Persons at Risk Database (PARD) Greg Boland In Progress 70 31 Dec, 2026 15-Jun-2026 Page 16 of 24
Page 17
PKC Heatmap Report SR-08 There are insufficient financial resources to provide the services that our communities need. Risk Categories: Finance, Audit, Legislation and Compliance, Contract and Procurement, Environment, Information Technology and Security, People / Human Resource, Property and Assets, Reputation and Public Image, Transformational Risk Owner: Scott Walker Last Reviewed Date: 18 May, 2026 Next Review Date: 01 Aug, 2026 Organisation > Chief Executive > Finance & Business Support I Inherent Risk Assessment R Residual Risk Assessment Probability I R Impact Individual Heatmap Effectiveness of control R Effective Risk Appetite OUT OF APPETITE The appetite benchmark score is 9.00 for this category Causes • Poor decision making • Inappropriate use of resources • Change in political direction • Changing demographics • Structural deficit in current revenue budget • High level of construction inflation impacting capital budget • Cyber defences being breached • Failure to deliver planned savings due to a reduction in local government funding/financial settlement • Failure to prioritise/align financial resources to need • Failure to transform Council services • High levels of inflation • Increased ring-fencing of funding • Increasing and/or more complex needs • Increase in expenditure • Movements in financial settlement • Movements in income • Reduction in local government funding • The current economic climate and cost of living crisis Consequences • Increased pressure on staff • Failure to achieve best value • Deterioration in quality and safety of assets • Failure to deliver a balanced budget • Increased costs through failure demand • Increased pressures on other parts of public sector or 3rd sector • Increase in future savings and significant reduction in the Council's reserves • Lack of confidence in Council / reputational loss • Legal /financial claims and penalties for breach of duties and/or injury • Poor outcomes - economic, environmental and social wellbeing • Reduction in availability/quality of services Residual Controls Control Code Control Title Risk Control Owner Control Effectiveness Next Review Date CTL-63.1 Medium Term Financial Plan Scott Walker Adequate 31 May, 2027 CTL-64.1 Annual Accounts and Statutory Audit Processes Scott Walker Effective 31 May, 2027 CTL-95.1 Three Year Revenue Budget Scott Walker Effective 31 May, 2027 CTL-52.2 Strategic Investment Advisory Group Scott Walker Effective 31 May, 2027 CTL-36.1 Financial Strategy and Principles Scott Walker Effective 31 May, 2027 CTL-37.1 Transformation and Change Programme Charlene Guild Adequate 31 May, 2027 15-Jun-2026 Page 17 of 24
Page 18
PKC Heatmap Report Residual Controls Control Code Control Title Risk Control Owner Control Effectiveness Next Review Date CTL-38.1 Capital Budget Scott Walker Effective 31 May, 2027 CTL-39.1 Treasury Management Scott Walker Adequate 31 May, 2027 CTL-40.1 Revenue and Capital monitoring Scott Walker Adequate 31 May, 2027 CTL-41.1 Continuous engagement with management and elected members, e.g. Executive Leadership Group, Conveners, BRGs. Scott Walker Effective 31 May, 2027 CTL-443.1 No Purchase Order /No Payment Scott Walker Effective 18 May, 2027 CTL-204.1 Reserves Strategy Scott Walker Adequate 31 May, 2027 CTL-447.1 Proactive asset management - Corporate Strategy and plans Scott Walker Improvement Required 11 Dec, 2026 CTL-88.1 Financial Regulations and Supplementary Guidance Scott Walker Effective 31 May, 2027 CTL-211.1 Annual Governance & Assurance Statement Jacqueline Clark Effective 18 May, 2027 CTL-212.1 Investment Blueprint Scott Walker Effective 18 May, 2027 CTL-213.1 Budget Briefing Communications Scott Walker Effective 18 May, 2027 Residual Solutions Action Title Responsible Officer Action Status % Completed Target Completion Date Performance Consolidation of finance function to transformation the finance service Scott Walker In Progress 75 31 Mar, 2027 Develop generational ( 25+ year) strategic plan Greg Boland Not Started 0 31 Aug, 2027 Improved analysis of financial data (heatmap project) Scott Walker In Progress 70 31 Dec, 2026 No Purchase Order /No Payment Project Scott Walker Completed 100 31 Mar, 2026 Review and rationalisation of operational estate John Beveridge In Progress 5 30 Jun, 2036 Review and rationalisation of school estate David MacLuskey In Progress 1 30 Jun, 2036 Whistleblowing Communications plan Jacqueline Clark Completed 100 30 Jun, 2025 15-Jun-2026 Page 18 of 24
Page 19
PKC Heatmap Report SR-09 We have insufficient capacity and skills within the workforce to deliver the services that our communities need Risk Categories: People / Human Resource, Reputation and Public Image Risk Owner: Greg Boland Secondary Responsible Person(s): Pauline Johnstone Last Reviewed Date: 28 May, 2026 Next Review Date: 31 Aug, 2026 Organisation > Chief Executive > Strategic Planning, People & Performance I Inherent Risk Assessment R Residual Risk Assessment Probability I R Impact Individual Heatmap Effectiveness of control R Effective Risk Appetite OUT OF APPETITE The appetite benchmark score is 5.00 for this category Causes • Difficulties with recruitment, shortages in the labour market • Difficulties with retention, pay and grade, impact of hybrid working on existing workforce • Inadequate financial resources • Inadequate workforce planning (including succession planning, policies & strategies, vacancies management, wage analysis) • Increase in sickness absence, reduced wellbeing • Lack of knowledge and expertise in particular areas • Workforce reduction through restructuring/consolidation as part of transformation and change programme Consequences • Detrimental impact on environmental, economic and health and wellbeing outcomes across Perth and Kinross • Failure to deliver strategic objectives • Failure to deliver the services that communities need / poor quality services • Legal /financial claims and penalties for breach of duties and/or injury • Poor staff morale, health and wellbeing/ increased staff absence • Reputational damage/Council being seen as an unattractive employer Residual Controls Control Code Control Title Risk Control Owner Control Effectiveness Next Review Date CTL-42.1 People and Culture Strategy 2024-2028 Pauline Johnstone Effective 31 May, 2027 CTL-43.1 Hybrid/new ways of working: guidance and operating models established Pauline Johnstone Effective 31 May, 2027 CTL-44.1 Workforce planning procedures and guidance Pauline Johnstone Adequate 31 May, 2027 CTL-45.1 Modern Apprentice & Graduate trainee schemes Pauline Johnstone Effective 31 May, 2027 CTL-46.1 Leadership skills training Pauline Johnstone Adequate 31 May, 2027 CTL-47.1 Organisational development plan Pauline Johnstone Adequate 31 May, 2027 CTL-48.1 Wellbeing/resilience/support (including links to partner organisation support resources for care workers) Pauline Johnstone Effective 31 May, 2027 CTL-49.1 Leadership Development Programme Pauline Johnstone Adequate 31 May, 2027 CTL-50.1 Employees Joint Consultative Committee Pauline Johnstone Effective 31 May, 2027 CTL-51.1 Joint Negotiating Committee for Teaching Staff Pauline Johnstone Effective 31 May, 2027 CTL-393.1 Leadership Development Strategy Pauline Johnstone Adequate 01 May, 2027 15-Jun-2026 Page 19 of 24
Page 20
PKC Heatmap Report Residual Controls Control Code Control Title Risk Control Owner Control Effectiveness Next Review Date CTL-126.1 Employee Relations & Wellbeing Team Pauline Johnstone Adequate 31 May, 2027 CTL-127.1 Workforce Planning Themed Board Greg Boland Adequate 31 May, 2027 CTL-89.1 Health and Wellbeing Plan Pauline Johnstone Improvement Required 31 May, 2027 CTL-249.1 People Analytics Dashboard Pauline Johnstone Adequate 31 May, 2027 Residual Solutions Action Title Responsible Officer Action Status % Completed Target Completion Date Performance Create a health and wellbeing pathway for change across PKC and the P&K HSCP which identifies the elements of a healthy workforce. Pauline Johnstone In Progress 70 31 Dec, 2026 Deliver the People and Culture Strategy Action Plan which is due for approval at Finance and Resources Committee Pauline Johnstone In Progress 90 30 Jun, 2026 15-Jun-2026 Page 20 of 24
Page 21
PKC Heatmap Report SR-010 Council buildings and other assets are not safe, fit for purpose or providing best value Risk Categories: Property and Assets, People / Human Resource Risk Owner: Scott Walker Secondary Responsible Person(s): Alan Taylor,Elaine Ritchie,Fraser Crofts,John Beveridge Last Reviewed Date: 14 May, 2026 Next Review Date: 29 Aug, 2027 Organisation > Depute Chief Executive > Environment & Infrastructure Organisation > Chief Executive > Finance & Business Support Organisation > Depute Chief Executive > Property Services I Inherent Risk Assessment R Residual Risk Assessment Probability I R Impact Individual Heatmap Effectiveness of control R Adequate Risk Appetite OUT OF APPETITE The appetite benchmark score is 5.00 for this category Causes • Climate change and increase in extreme weather events • Failure to respond appropriately to H&S concerns raised through national enquiries/reports • Failure to identify future investment where needed • Inadequate maintenance and repair • Ineffective asset management and planning • insufficient resource and capacity Consequences • Detrimental impact upon ability to deliver or quality of services • Increased costs due to insurance claims and maintenance • Injuries/fatalities • Legal /financial claims and penalties for breach of duties and/or injury • Reputational damage/loss of public confidence Residual Controls Control Code Control Title Risk Control Owner Control Effectiveness Next Review Date CTL-90.1 Condition and suitability surveys Scott Walker Effective 14 May, 2027 CTL-441.1 30 Year Rolling Investment Plan Scott Walker Adequate 14 May, 2027 CTL-442.1 Annual Status Report Gregor Walker Effective 14 May, 2027 CTL-55.1 Corporate Asset Management Framework Scott Walker Effective 14 May, 2027 CTL-52.1 Strategic Investment Advisory Group Scott Walker Effective 14 May, 2027 CTL-75.1 Asset Maintenance programmes Gregor Walker Adequate 14 May, 2027 CTL-54.1 Asset strategies, plans and performance information Scott Walker Effective 14 May, 2027 CTL-53.1 Asset Management Boards Scott Walker Adequate 14 May, 2027 Residual Solutions Action Title Responsible Officer Action Status % Completed Target Completion Date Performance 30 year investment plan - Revision for 2025/26 Scott Walker Completed 100 31 Jan, 2026 Progress any actions from BV Audit (Awaiting Outcomes) Gregor Walker Not Started 0 31 Mar, 2027 15-Jun-2026 Page 21 of 24
Page 22
PKC Heatmap Report Action Title Responsible Officer Action Status % Completed Target Completion Date Performance Revision of 30 Year Investment Plan & Asset Status Reports Gregor Walker In Progress 10 31 Jan, 2027 Status reports for 2024/25 for key assets and report to appropriate Boards and/or Committees Scott Walker Completed 100 30 Oct, 2025 15-Jun-2026 Page 22 of 24
Page 23
PKC Heatmap Report SR-011 The health and safety of staff and the public is not adequately protected Risk Categories: Audit, Legislation and Compliance, People / Human Resource Risk Owner: Greg Boland Secondary Responsible Person(s): Pauline Johnstone Last Reviewed Date: 28 Apr, 2026 Next Review Date: 31 Jul, 2026 Organisation > Chief Executive > Strategic Planning, People & Performance I Inherent Risk Assessment R Residual Risk Assessment Probability I R Impact Individual Heatmap Effectiveness of control R Effective Risk Appetite OUT OF APPETITE The appetite benchmark score is 5.00 for this category Causes • Health & safety implications of new ways of working (e.g. hybrid / remote) not fully known/understood • Inadequate resources and capacity • Ineffective monitoring, reporting and response • Lack of understanding /failure to apply legislation • Under-investment in training and controls Consequences • Detrimental impact on health and wellbeing • Legal /financial claims and penalties for breach of duties and/or injury or death • Poor working environment and work life balance • Potential injury/fatality • Reputational damage/loss of confidence Residual Controls Control Code Control Title Risk Control Owner Control Effectiveness Next Review Date CTL-56.1 Health & Safety training and communication Lorna Hamilton Effective 01 May, 2027 CTL-57.1 Robust Corporate Occupational Health & Safety Policy with supporting arrangement and guidance documents Lorna Hamilton Adequate 01 May, 2027 CTL-58.1 Corporate Health & Safety Team Lorna Hamilton Effective 01 May, 2027 CTL-59.1 Employees Joint Consultative Committee and Service based Health and Safety Committees Pauline Johnstone Effective 01 May, 2027 CTL-60.1 Safe Systems of Work Lorna Hamilton Effective 01 May, 2027 CTL-61.1 Partnership working with Director of Public Health ongoing Pauline Johnstone Effective 01 May, 2027 Residual Solutions Action Title Responsible Officer Action Status % Completed Target Completion Date Performance Develop an approach to replace Service Consultative Committees with one Strategic Committee Pauline Johnstone Completed 100 30 Nov, 2025 Implementation of Occupational Health and Safety policy and supporting topic specific arrangements Lorna Hamilton In Progress 90 31 Mar, 2027 Monitoring and auditing of health and safety practices and procedures both by Management and Corporate Health & Safety Team Lorna Hamilton Deferred 25 31 Mar, 2027 15-Jun-2026 Page 23 of 24
Page 24
The entire contents of this document are subject to copyright with all rights reserved. All copyrightable text and graphics, the selection, arrangement and presentation of all information and the overall design of the document are the sole and exclusive property of Riskonnect Inc. Copyright © 2026 Riskonnect Inc. All rights reserved.