Item 05 - Strategic Risks 2022-2027
West Dunbartonshire Council · 2 September 2026
Back to Audit Committee — 2 September 2026 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – People & Technology Audit Committee: 2 September 2026 ___________________________________________________________________ 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. Six strategic risks associated actions and milestones are met and are progressing as expected whilst getting closer to reaching their assigned targets. SR001, SR007, SR008, SR011 and SR012 are currently off target, which is explained in further detail below. ITEM 5
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4.3 Following feedback from the Audit Committee meeting in February 2026, a strategic review has been undertaken of SR005 Engaging Positively with Residents, Communities and Partnerships. The review concluded that this area no longer meets the criteria for a strategic risk, compared to other strategic risks the milestones within are less definitive and more difficult to measure. The proposal reflects a change in the level and mechanism of oversight, rather than engagement no longer being important. Therefore, SR005 has been removed from the Strategic Risk Register. This risk will be monitored and managed at a service level going forward as part of the Regulatory and Regeneration service plan. 4.4 In preparation for September’s meeting of the Audit Committee, the risk posed by the potential for a national power outage has been explored and given wide ranging impacts on the council’s ability to deliver services, a new risk: SR012 National Electricity Transmission System (NETS) outage is proposed be added to the strategic risk register.
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Table 1 Key Strategic Risk Information Strategic Risk Original Risk October 2022 Current Risk September 2026 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 006 Challenges in protecting the Health and Safety of Employees and Others SR 007 Complexities in ensuring an appropriately resourced and resilient workforce
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Risk Methodology and Reporting 4.5 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. 4.6 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: SR 008 Threat of Cyber Attack SR 00 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 SR 012 National Power Outage (NETS Failure)
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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 4.7 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 4.8 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 2025/26 service planning process. 4.9 Significant financial funding reductions/limitations from Scottish Government It is expected the Council will continue to be faced with significant real term funding reductions from the national settlement. This is based on the Spending Review published by the Scottish Government in January 2026 which sets out multi-year spending plans over the three-year period 2026/27- 2028/29 across the various portfolios. It illustrates that Local Government funding, in cash terms, is expected to decrease by 0.07% over the three-year period which will require councils to absorb the financial pressures brought about by all inflationary increases. 4.10 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 including recent attacks on Scottish councils. 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:
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Geopolitical threat increasing due to current world tensions. Russia is recognised by national security operations as the world’s largest cyber threat actor. Demand for emerging technologies such as Artificial Intelligence solutions present new challenges for the council to implement and secure. Risk to Backup technology and corruption of council data. Ransomware attacks – surge 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. Social Engineering and ‘old school’ cyber-attacks now present a higher risk. Third Party Risks – The Council often relies on third party vendors and suppliers, increasing the risk of cyber-attacks through the supply chain. Mitigations: Implementation of a new Cyber Incident Logging and Response system (MDR) offering enhanced protection. 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. Social Engineering guidance issued to all employees with new ‘Be Cyber Smart’ campaign. Engagement with ICT Security Partners to highlight and advise on specific areas of risk. Continual assessment and improvement of our Cyber Security posture. Robust Business Continuity and Disaster Recovery plans with a new ICT backup policy in place. 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 and Scottish Government (SC3) guidance continues to remain in place. 4.11 Complexities in ensuring an appropriately resourced and resilient workforce Workforce Planning Strategy in place for 2022-2027. People First Strategy is in place covering 2022-2027 and this is a consolidation of a number of areas: well-being, employee engagement, workforce planning, learning and development and digital.
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WDC continue to offer a range of flexible working practices and have a range of employee supports in place that are reflective of best practice. However, absence levels continue to be high with little change in the top 3 reasons for sickness absence. Absence continues to be monitored through committee and management practices and improvements are currently being made to the Supporting Employee Wellbeing procedure that will improve data and strengthen the organisation’s ability to measure the effectiveness of absence management interventions. A range of communication tools and channels are regularly utilised to ensure that employee voice is heard, and key information is shared with the workforce. Engagement measures continue to show a downward trend in relation to the workforce feeling valued, which is in-keeping with the wider public sector and in the context of the ongoing financial challenges and restructure exercises to deliver savings options. Maximising digital tools and solutions to aid the workforce continues with the ongoing rollout of M365 Sharepoint and the Fit for Future programme focussing on corporate processes to identify efficiencies, starting with the Supporting Employee Wellbeing process. Additionally, the Digital team continue to highlight digital learning resources and tools available to aide adoption levels. Resources in the people support functions continue to be limited impacting on the scale of proactive improvement work that can be undertaken and presenting challenges in supporting services 4.12 Inability to reduce carbon footprint in line with targets The risk assessment remains unchanged from mid-year. The Council's most recent emissions reported in November for 2024/25 showed significant progress. (Details are set out under the PI ‘Tonnage of carbon dioxide emissions from Council operations and assets’ above.) The long-term Climate Change Coordinator vacancy has been filled internally; this currently leaves another vacancy within the energy team that will be filled as soon as possible. Participation from service areas has increased at Climate Change Action Plan meetings and emission reductions actions and projects are forthcoming. The Council also has the opportunity to utilise ClimateView and track trajectory to Net Zero, allowing actions and projects to be prioritised and a more collective, strategic approach to be implemented. The Strategic Risk will be reviewed at the next Climate Change Action Plan meeting for relevance and an amended risk / set of risks will be reported to future meetings.
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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.
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10. Strategic Assessment 10.1 At its meeting on 26 October 2022, the Council agreed that its four 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 August 2026 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
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