Item 6 - Strategic Risks 2022-2027
West Dunbartonshire Council · 19 February 2025
Back to Audit Committee — 19 February 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – People & Technology Audit Committee: 19th February 2025 ___________________________________________________________________ Subject: Strategic Risks 2022-2027 1. Purpose 1.1 To provide an update on the strategic risks for 2022-27. 2. Recommendations 2.1 It is recommended that the Committee note: The strategic risks as detailed at Appendix 1. 3. Background 3.1 The Council’s 2022 – 2027 strategic risks were agreed by the Corporate Services and Audit Committees in November 2022. The appended risks have been reviewed with re-assessment undertaken before being reported to this committee. This report is submitted as agreed to Audit Committee on a bi- annual basis. 4. Main Issues Strategic Risk 4.1 In line with the Council’s Risk Management Framework, a re-assessment of the Strategic Risks has taken place as detailed within Appendix 1. Each risk is managed through internal controls, linked actions and associated milestones with the objective being to reduce or stabilise the level of risk through completion of linked actions over a period and/or ensure mitigation factors are adequate should the risks actually materialise. 4.2 Table 1 represents a risk dashboard that includes information on the original, current and target rating for each strategic risk, as well as an assessment of the current risk status. Each strategic risk is identified and supported by more detailed information available on a “drill-down” basis in Appendix 1. Seven strategic risks, associated actions and milestones are met and are progressing as expected whilst getting closer to reaching their assigned targets. SR001, SR007, SR008, and SR011 are currently off target, which is explained in further detail below. Page 1
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Table 1 Key Strategic Risk Information Strategic Risk Original Risk October 2022 Current Risk December 2024 Target Risk March 2027 Risk Status Rationale SR 001 Significant financial funding reductions/limitations from Scottish Government SR 002 Challenges in implementing broad- ranging school improvement to raise attainment and achievement SR 003 Maintaining Council Assets that are fit for purpose SR 004 Keeping abreast of developments in the innovative use of Information Technologies SR 005 Engaging positively with Residents, Communities & Partnerships SR 006 Challenges in protecting the Health and Safety of Employees and Others SR 007 Complexities in ensuring an appropriately resourced and resilient workforce Page 2
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SR 008 Threat of Cyber Attack SR 009 Challenges in delivering effective services in relation to Roads & Neighbourhoods SR 010 Failure to maintain Housing Stock SR 011 Inability to reduce carbon footprint in line with targets Risk Methodology and Reporting 4.3 Each strategic risk is populated in Pentana in terms of the following template: Risk title and code; Description; Ownership; Potential effect; Measures of impact; Risk factors; Internal controls; Risk opportunity; and Linked actions. 4.4 Each risk has been scored using a “4 x 4” matrix for likelihood and impact in relation to: Current risk (with review dates set at pre-determined intervals); and Target risk (i.e. 31 March 2027 - the duration of the Strategic Plan). The risk descriptors used in the “4 x 4” matrix are as follows: Page 3
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Likelihood Score Descriptor 1 Unlikely 2 Likely 3 Very likely 4 Certain Impact Score Descriptor 1 Minor 2 Moderate 3 Significant 4 Critical 4.5 For ownership, each strategic risk is “Managed By” a Chief Officer and “Assigned To” a Senior Officer. Strategic risks are also reported on a bi- annual basis to the Performance & Monitoring Review Group. Service Risk 4.6 Following the methodology in 4.3 to 4.4 above, each service has owned operational risk registers in Pentana (the Council’s performance system) which were reviewed as part of the 2024/25 service planning process. 4.7 Significant financial funding reductions/limitations from Scottish Government While there has been a cash increase in funding in 2025/26 this was fundamentally due to sizable increases in revenue being raised through taxation as part of the Autum 2024 UK Budget statement. This is not expected to be a recurring situation and therefore the Council will continue to be faced with significant real term funding reductions from the Scottish Government settlement. This coincides with a period where costs are continuing to rise in relation to social care, significant inflationary increases and continuing pay award pressures. Whilst there are ongoing discussions between the Scottish Government and Local Government aiming to reduce the ring fencing of funding, the reality is that material elements of funding remain ring fenced which significantly restricts how the Council can most effectively use the funds made available to it. Page 4
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4.8 Threat of Cyber Attack This risk will always be high as the threat and likelihood of a Cyber Attack remains. The UK public sector is still experiencing elevated levels of targeted Cyber-attacks. As this risk continues to be high the emphasis remains on proactive measures to protect the confidentiality, integrity and availability of our data, critical infrastructure, and overall business operations. Key risks and continual threats include: Demand for emerging technologies such as Aritificial Intelligence solutions present new challenges for the council to implement and secure. Risk to Backup technology and corruption of council data. Ransomware attacks – surged in recent years, potential for significant financial loss and operational disruption. Advanced Persistent Threats (APT’s) – sophisticated stealthy attacks conducted by well-resourced groups, targets include critical infrastructure, government bodies and large corporations. User awareness – Phishing attempts on the rise with more sophisticated techniques being deployed including voice and text phishing. Targeted threats tailored to specific areas of the Council are being observed. Third Party Risks – The Council often relies on third party vendors and suppliers, increasing the risk of cyber-attacks through the supply chain. Mitigations: Investment in our perimeter and internal firewall technology with enhanced threat prevention capabilities. Investment in data backup technology including cloud and offsite Cyber resilience. Continual improvement of our vulnerability/patch management systems and processes. Continual promotion of Cyber awareness through simulated phishing campaigns supported by our online security training and awareness platform. Engagement with ICT Security Partners to highlight and advise on specific areas of risk. The use of machine learning tools to baseline “normal” on our systems and highlight any deviation from this which could indicate potential compromise. Improving Email security with enhanced Phishing/Spam identification. Improved and more secure remote access solution now implemented. Implementing stricter access controls with zero trust technology and policies. Continual assessment of our Cyber Security posture. Risk Assessments such as Incident Response Readiness review, Security Gap Analysis, DPIA and regular audits. Page 5
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Creation of dedicated Cyber Security team and providing industry standard training. Robust Business Continuity and Disaster Recovery plans with a new backup policy in development. Progress continues to take place to improve our security posture in line with the national Public Sector Action plan (PSAP) and Public Sector Network (PSN) compliance. Vigilance of the National Cyber Security Centre (NCSC) Cyber Security guidance continues to remain in place. The cyber security landscape continues to evolve rapidly requiring ICT to adopt proactive measures to protect our assets and maintain business continuity. By understanding the current threat landscape, complying with relevant regulations and guidelines, managing third party risks, and establishing robust incident response and business continuity plans the Council is reducing our exposure to cyber security risks and building a resilient cyber security posture. 4.9 Complexities in ensuring an appropriately resourced and resilient workforce The risk rating remains scored at a 6. The difficult funding position means an impact on an appropriately resourced and resilient workforce is expected however the severity of this remains unclear. Services are reviewing structures and service delivery models in light of the council's financial challenges. The Workforce Planning Strategy is in place for 2022-2027. Additionally, the People First Strategy covers the same period and consolidates several areas: well-being, employee engagement, workforce planning, learning and development and digital. A robust package of wellbeing resources continues to be available, the council is recognised as a leading employer in terms of adapting flexible working practices, attendance levels are closely monitored, with personal stress and minor ailment absences currently prevalent. Digital Skills approach has been refreshed with a matrix cascade planned across the organisation to support 365 Share point rollout utilising digital leads and champions. To further support this the digital team have completed a programme over the last year focusing on digital skills, improving the use of data and maximising 365 tools. The council wide rollout to SharePoint continues with employees being supported on the opportunities this software can provide. 4.10 Inability to reduce carbon footprint in line with targets The risk of non-delivery of carbon emissions targets remains as moderate. Progress is being made through the delivery of the Climate Change Action Plan; however, pace of delivery has been, and will continue to be, impeded due to lack of internal resource and additional funding to deliver. Page 6
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5. People Implications 5.1 There are no people implications associated with this report, other than in relation to the mitigation of risk. 6. Financial and Procurement Implications 6.1 There are no financial and/or procurement implications directly associated with this report however there are in relation to any expenditure linked to mitigation. 7. Risk Analysis 7.1 Failure to ensure robust risk management is likely to result in the Council being criticised by External Auditors for not having an integrated approach to embedding risk management within the authority with the result that a “no scrutiny required” status would not be achieved. 7.2 Progressing with a robust risk management approach will demonstrate that the Council is taking ownership of risk management and ensuring effective measures are in place. The ability to demonstrate risk ownership should benefit the Council in terms of: Understanding risk and its potential impact on the Council’s priorities and objectives; Reducing insurance premiums going forward by recognising that a mature approach to risk management will contribute to a reduction in the number and value of claims across a range of insurance classifications; Contributing towards incident prevention based upon post-incident investigation; Meeting statutory/regulatory requirements; and Ensuring better partnership working with external and internal partners. 8. Equalities Impact Assessment (EIA) 8.1 EIA 548 notes the positive impacts of an approach to risk that integrates considerations on equalities, human rights health and social and economic impacts that is aligned with the content of the new Strategic Plan. 9. Consultation 9.1 The strategic risks have been discussed with the Chief Officers and senior management. The reports to committee are available to the Trades Union and consultation undertaken as required. 9.2 The strategic risks have been cross checked with WD HSCP. This ensures that issues affecting HSCP are reflected within the wider council strategic risk report. Page 7
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10. Strategic Assessment 10.1 At its meeting on 26 October 2022, the Council agreed that its five main strategic priorities for 2022 - 2027 are as follows: Our Communities - Resilient and Thriving Our Environment - A Greener Future Our Economy - Strong and Flourishing Our Council - Inclusive & Adaptable 10.2 The strategic risks have been identified to complement and underpin all strategic priorities. Name: Victoria Rogers Designation: Chief Officer People & Technology Date: 3rd February 2025 Person to Contact: Harry McGhie, Risk & Health and Safety Officer Harry.McGhie@west-dunbarton.gov.uk Appendices: Appendix 1: Detailed Strategic Risk List Background Papers: West Dunbartonshire Council Strategic Plan 2022-2027 Risk Management Framework EIA screening Page 8