Strategic Risk Assurance Mapping Appendix 1
Argyll and Bute Council · 4 September 2025
Back to Audit and Scrutiny Committee — 4 September 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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APPENDIX 1: Strategic Risk Assurance Map N o Risk Risk Score First Line of Defence Second Line of Defence Third Line of Defence Assessment 1 Population, External Infrastructure and Economic Decline Failure to identify relevant factors contributing to the decline and failure to develop strategies and actions targeting these factors. Red 16 • Service planning linked to Corporate Outcomes and the A&B Outcome Improvement Plan (ABOIP) • Community and multi- agency links through Community Planning Partnership • Parliamentary forum • Argyll, Lomond and Islands Rural Regeneration Initiative • Argyll and the Isles Strategic Tourism Partnership • Promotion and marketing of Argyll & Bute (ABplace2B campaign) • Business Gateway Service focused on helping local businesses grow • Council Leader engaging with leaders of other west coast councils suffering population decline • Economic Strategy and Action Plan monitored by ED&I Committee • CPP report on the progress being made against the outcomes and vision of the ABOIP and issue annual reports. • Monitoring of CPP plan and performance at CPP Management Committee. • Area Community Action Plans progress reported to Community Planning Groups • ABOIP targets population and economic recovery • Performance reports considered by A&SC, strategic committees and area committees External Audit • Best Value Assurance Report (May 2020) highlights Council’s and CPP partners’ commitment to a shared vision and that they recognise the challenges including the declining and aging population Internal Audit • Planning (2023/24 – Substantial) • Community Education (2024/25 – High) • Short Term Lets (2024/25 – Substantial) • Oban Airport (2024/25 – High) Scrutiny • Economic Strategy (2019/20) Future • Delivery of the Rural Growth Deal • UK Shared Prosperity Funding Investment Plan is being actioned as per plan. • Multi-agency approach to refugee settlement underway linking with national processes and There is a range of assurance sources across the three lines.
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agendas. • The council will continue as a partner of the Highlands and Islands Regional Economic Partnership and lobby for Government investment to realise economic opportunity and address barriers to future sustainable growth. • Internal Audit Rural Growth Deal (2025/25) 2 Condition and suitability of Infrastructure & Asset Base Infrastructure and asset base does not meet current and future requirements and is not being used or managed efficiently and effectively. Amber 12 • R&A Control Hub and Joint Operations Team • Operational risks monitored quarterly • Strategic Asset Mgt Board • Corporate Asset Management Strategy and Corporate Asset Management Plan • Service Asset Management Plans • Community Empowerment and Community Asset transfer arrangements in place • Roads Asset Management Plan • One Council Property Approach • Routine inspections of roads infrastructure to deal with potential weak areas • Revised capital management • D&I performance reporting to ED&I Committee • Asset Mgt Plans reviewed annually by Council as part of the budget setting process • Status and Options reports to ED&I Committee Internal Audit • Community Empowerment Act (2018/19 – High) • Capital Monitoring (2020/21 – Substantial) • Management of Property Contracts (2020/21 – Reasonable) • Land & Asset Disposal (2021/22 – Substantial) • Internal Audit – Fixed Asset Register (2021/22 – Reasonable) • Piers and Harbours (2023/24 – Reasonable) • Leasing - Estates (2024/25 – Substantial) • Asbestos Management (2024/25 – Reasonable) • Bridges Asset Management Plan and Inspection Regime (2024/25 – Reasonable) Scrutiny • Roads Maintenance (2018/19) • Scrutiny – Community Asset There is a range of assurance sources across the three lines.
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procedures Future • Modern Workspace Programme to review and rationalise property portfolio for future needs of the Council. Changes on phased and town by town basis Transfers (2021/22) Future • Internal Audit - Roads Reconstruction Programme (2025/26) • Review of Capital Arrangements in 2025/25 • Delivery of the Capital Programme 20025/26 3 Financial Sustainability Insufficient resource to meet current and future service requirement. Budget not aligned / does not support business outcomes. Amber 12 • Budget preparation and monitoring • Medium term financial strategy with worst case, mid case and best case scenario planning • Treasury Mgt Policy • 5 year budget outlook updated quarterly • Financial Services Team aligned to service delivery • Regular engagement between budget holders and appointed finance contact • Reserve balances monitored throughout the year • Financial monitoring and financial risk monitoring to P&R/BCC Committee • Budget and budget working papers considered by full Council • Financial Strategy reported to P&R Committee • 5 year budget outlook to P&R Committee • Treasury Mgt Annual Report to P&R Committee and A&SC • Joint SMT/Policy Leads meetings include discussions around financial issues Internal Audit • Continuous Monitoring • Financial Planning (2018/19 - Substantial) • Capital Monitoring (2020/21 - Substantial) • Fixed Asset Register (2021/22 – Reasonable) • Management of Debt and Recovery (2022/23 – Reasonable) • Financial Ledger (2023/24- Substantial) • NDR (2024/25 - Substantial) External Audit • Assessment of financial management via annual audit • Best Value Report (April 2025) highlights the Council has effective financial planning arrangements in place but could take steps to enhance its strategic approach to considering a range of savings options to support difficult decisions. There is a range of assurance sources across the three lines.
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(New medium – longer terms budget approach 2025/26) • Assessment of budget monitoring arrangements Future • Internal Audit – Payroll (2025/26) • Rural Growth Deal (2025/26) • Consider the implications and opportunities from the Visitor Levy (Scotland) Bill which could generate additional income from 2026/27. 4 Governance and Leadership Governance and leadership arrangements are not conducive to effective working and lead to a lack of strategic direction. Amber 8 • Corporate Governance Improvement Plan • Ongoing member development • Mentoring and coaching for SMT • Leadership development programme • Chief Exec Bilaterals • A&B Manager’s Course • Established partnership governance • Effective internal audit function • Scrutiny function • Performance Improvement framework • Council constitution • Codes of conduct • Oversight provided by Audit & Scrutiny Committee • Decision making committees open to public • Constitution updated and approved annually by Council • IA reports and follow up to DMT and SMT • Annual assurance statements • Fortnightly DMTs – weekly ELT and monthly SMTs Internal Audit • Continuous Monitoring • Organisational Culture (2018/19) • Performance Mgt (2018/19 – High) • Member Support (2018/19 – Substantial) • Risk Mgt 2018/19 – Substantial) • Following The Public Pound (2019/20 – Reasonable) • Annual self-assessment of PSIAS – external peer review every 5 years • Formal Induction of new Audit and Scrutiny Committee Members 2022 • Risk Management (2023/24 – Substantial) There is a range of assurance sources across the three lines.
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for staff and members • Code of Corporate Governance and Annual Action Plan • Scrutiny framework and scrutiny plan • Risk management embedded • Policy lead meetings • Area Committee Business Days External Audit • Ongoing independent assurance reported in AAR • Best Value Report (March 2025) identified no significant concerns. Future • Scheduled reviews of Risk Management every two to three years. • Connect for Success priorities now form the basis of new corporate improvements and are being delivered. • New Corporate Improvement Plan. 5 Engagement and Understanding the needs of the Community The Council fails to understand service user needs and emerging demographic trends and does not align service delivery to meet these. Amber 9 • Annual budget consultation • Complaints process • Community Engagement Strategy • Customer Service Board • Various user feedback (i.e. Refugee Resettlement, commissioned services, community council surveys) • Parental engagement strategy • Outreach service • Democracy matters • Community Planning Partnership • Service Committees • Area Committees • DMT and SMT Internal Audit • Community Empowerment Act (2018/19 – High) • Complaints Handling (2021/22 – High) • Customer Service Centre (2022/23 – High) Other Agencies • Education Scotland and Care Inspectorate seek views of service users External Audit • Best Value Report (March 2025) identified that - As savings options become There is a range of assurance sources across the three lines.
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consultation • Development Mgt user forums more challenging to identify, engaging with communities is increasingly important. The council’s community engagement strategy should support this critical dialogue and needs to be embedded across the organisation. Scrutiny • Scrutiny – Community Asset Transfers (2021/22) • Scrutiny – Community Engagement (2022/23) • Scrutiny – Complaints (2024/25) Future • A working group was established to review our approach to Community Engagement; the Framework has now been developed and was approved by Policy and Resources Committee in December 2024. • Here to Hear You events - Programme of Here to Hear You community engagement events being undertaken by Leader and Chief Executive. (2025/26) 6 Service Delivery Insufficient resources to ensure effective service delivery Amber 12 • Performance Improvement Framework • Rolling out programme of service self- assessment • Service improvement • Performance reporting to A&SC, Service Committees and Area Committees • LGBF Review to A&SC, Service Internal Audit • Performance Mgt (2018/19 – High) • Complaints Handling (2021/22 – High) • IA annual plan is risk There is a range of assurance sources across the three lines.
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plans • Workforce planning • Complaints process • Use of LGBF • Strategic Plans with Success Measures aligned to Business Outcomes • Performance Improvement Officers Committees and Area Committees • Self-Assessments reported to SMT and A&SC based but also designed to provide annual coverage of all Heads of Service • Internal Audit review of Human Resources (2023/24 – Substantial) External Audit • Best Value Report (March 2025) highlights - The council must now ensure that its new corporate plan maintains a clarity of vision, that supporting strategies and policies are aligned to it, and that the plan is underpinned by more streamlined and focused performance reporting and key performance indicators to drive continuous improvement. Future • Internal Audit – Performance Management Arrangements and Reporting (2025/26) • Performance excellence project being reported regularly to Audit and Scrutiny Committee and SMT. 7 Health and Social Care Partnership Failure of the HSCP to deliver on its Strategic Priorities results in deteriorating health and wellbeing outcomes for the population and / or Amber 12 • Strategic Plan • Integration Scheme • IJB has elected member representation including Council Leader • Elected member representation on IJB Audit Committee (inc Vice Chair) • Council’s CIA regularly • Performance and financial monitoring and reporting in place and reported to IJB Board • HSCP Chief Officer sits on Council’s ELT • Financial Recovery Plan for Internal Audit • The IJB has their own IA function provided by the Council’s IA function (Contract started 1 April 2021 and renewed 2024) • Council’s IA function also provide assurance over social work services on an annual basis There is a range of assurance sources across the three lines.
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reduced access to appropriate health and social care services. This could also result in financial and reputational risk to the Council. attends IJB Audit & Risk Committee • Regular engagement between Council CFO and HSCP CFO 2025/26 in place • Development of options to deliver sustainability in future years is ongoing • Internal Audit - Charging for Non-Residential Services (2020/21 – Substantial) • Child Protective Services (2021/22 – Substantial) • Care Programme Approach (2021/22 – Limited) • Complaints handling (2021/22 – Limited) • Workforce Planning (2021/22 – Reasonable) • Client Funds (2022/23 – Limited) • Learning and physical Disabilities Care Packages (2023/24 – Substantial) • Client Funds (2023/24 – Reasonable) • SSSC Registration (2023/24 – Substantial) • External Placements (2024/25 – Reasonable) External Audit • IJB’s external auditors are Mazars. Future Internal Audits • Directed Self Support (2025/26) • Eclipse System Post Implementation (2025/26) 8 Civil Contingency & Business continuity arrangements are not effective. Green 6 • Critical activity recovery plans • Emergency planning test events • West of Scotland local • Emergency Mgt Support Team • EU tactical group progress reported to SMT Internal Audit • Business Continuity (2019/20 – Reasonable) • Disaster Recovery Moderate third line assurance at current time. A project has
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resilience partnership • Community resilience plans • EU withdrawal tactical group Planning (2020/21 – Limited) • Civil Contingencies (2021/22 – Substantial) Future • The new BCM system has been procured and configured and a pilot project to test the system and the process has been completed within 3 service areas, Procurement, Customer Engagement and Transformation Management and Residential (Care Home Services). Roll out is ongoing to other service areas which will result in business continuity plans being in place for each service. This is expected to be completed by 31 March 2026. commenced to implement business continuity processes, covering critical activities and testing of CARPS. This is an area that will merit a follow up audit in the medium term future. However assurance can be taken from the Council’s response to COVID which was fast paced and has proven to be effective. 9 Waste Management Waste disposal is impacted by a number of significant risks which are 1) the impact of the BMW Landfill Ban, 2) the end of the current waste PPP contract (September 2026), 3) a fast moving Scotland and UK Policy context. Red 16 • Council rolling out new waste strategy • Using education and publicity to increase recycling • Performance reporting to EDI Committee • Progress monitoring by DMT and SMT Internal Audit • Waste Mgt (2018/19 – Limited) Scrutiny • Waste Mgt Strategy (2020/21) - On 27 April 2021 the Head of Roads and Infrastructure Services provided a presentation to the A&SC regarding the Council’s Waste Strategy followed by a question and answer session. Following the presentation the A&SC members agreed they were assured that appropriate progress was being made in relation to Assurances over this risk are currently moderate due to the Council’s Waste Strategy being in its infancy and prior to the full implementation of the BMW landfill ban. However full implementation is not untill 2026. The A&SC determined they are content that progress is reported to the
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the Council’s waste strategy and that inclusion of a specific scrutiny topic focusing on the Strategy would not add value at this time. • A briefing note was requested by the A&SC in June 2022 relating to Waste Mgt and was presented by the HoS in September 2022. • A briefing and update report was presented to the A&SC in December 2023 by the HoS. Future • Confirmation received from the Scottish Government that £1.5m has been made available to support the compliance with the BMW Landfill Ban. • Contract management meetings are now taking place with the PPP provider chaired by the HoS. • Determining and mobilizing a plan for the closure and restoration of existing landfill sites (within the PPP contract) to ensure compliance with regulatory requirements prior to the implementation of the BMW landfill ban. Next stage in this is to gain understanding from SEPA of the timescales they will require for restoration of these sites. Scrutiny Review of BMW EDI Committee and that the A&SC will maintain a watching brief.
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arrangements scheduled for 2025/26. 10 Service Delivery - Cyber Security Unable to deliver services to customers because of failure of ICT systems following major cyber security breach Red 15 • ICT Security & compliance officer in post, producing weekly threat analysis. • Regular patching regimes in place • ICT Disaster recovery plans tested regularly • Critical activities have recovery plans developed (CARP’s) • Progress monitoring by DMT and SMT Internal Audit • Business Continuity (2019/20 – Reasonable) • Disaster Recovery Planning (2020/21 – Limited) • Internal Audit – Cyber Security (2022/23 – Substantial) • Cloud Based Services (2023/24 – Substantial) • Data Security and Information Security (2024/25 – Substantial) • IT Risk register and Mitigation Processes (2024/25 – Substantial) Other Agencies • PSN and Cyber Essentials accreditations for corporate network (doesn’t cover education network) Future • Internal Audit – ICT Disaster Recovery (2025/26) Moderate third line assurance at current time. A project has commenced to implement business continuity processes, covering critical activities and testing of CARPS This is an area that will merit a follow up audit in the medium term future. 11 Cost of Living Crisis The Council are unable to respond to the implications Amber 12 • Financial stability and support to HSCP. • Social Welfare and Poverty Funding assistance. • Focused support and multi-agency approach • Progress monitoring by DMT and SMT • WRWG report to SMT • SMT monitor of risk and consider high and medium Internal Audit • HB & CTR (2018/19 – Substantial) • Internal Audit - Scottish Welfare Fund (2020/21 – There is a range of assurance sources across the three lines of assurance in respect of welfare reform.
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arising from the 'Cost of Living' crisis Implementation of welfare reform is not managed well resulting in increased poverty and deprivation or short term crisis. where risk is highlighted. • Monitoring of trends in service use to highlight any significant change as a result of financial hardship • Targeted measures - for example to those receiving Council Tax reductions - via Gift Cards and Flexible Food and Fuel Fund. • Financial Inclusion and Advice Group established. • Joint working with DWP, CPP and other agencies. • Flexible Food Fund created. Supporting householders in our area with funds and advice to address food and fuel insecurities. • Child Poverty Planning Group set up and active. • Joint initiative with Argyll and Bute Citizens Advice Bureau (ABCAB), and Bute Advice Centre to proactively identify and support vulnerable individuals experiencing mental health challenges due to the Cost of Living Crisis. hardship cases • Anti-poverty strategy approved by Council • Child poverty action planning monitored by WRWG Substantial) • Internal Audit - Welfare Rights (2020/21 – Substantial) Other Agencies • Focused support and multi-agency approach where risk is highlighted Future Actions • Extend flexible food and fuel fund.. • Supporting the Poverty Alliance in their Tackling Rural Poverty project, observing its progress and considering outcomes as they emerge. • Preloved School Clothing Bank operating across Argyll and Bute. • Deliver Islands Cost Crisis funding from the Scottish Government in 2025/2026 supporting island based foodbanks and further targeted support to mitigate fuel poverty on our islands • Provide £5,000 of LACER funding to community food organisations across Argyll and Bute in 2025/2026 which was approved as part of the budget process However, Limited third tier assurance in respect of ‘Cost of Living Crisis but significant evidence of pro- active measures and support. However assurance can be taken from the Council’s response to COVID which was fast paced and has proven to be effective.
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12 Impact of Climate Change The Council or communities are overwhelmed by severe or more frequent flooding, landslides, rainfall, storms, sea level changes or hot weather events due to changes in global temperature caused by climate change. Amber 12 • Continued delivery of Council De- Carbonization Plan • Civil Contingencies Manager liaising/ collaborating with Regional Resilience Partnerships and other resilience partners in terms of storm event, hot weather events, cut off communities, landslides etc. • Development and delivery of an integrated approach to decarbonisation and adaptation of Argyll and Bute as a Region via Community Planning Partnership. • Roads & Amenity Services continue to develop asset management plan and address strategic risks in terms of rising sea levels, bridge repairs, critical infrastructure vulnerability. • Progress monitoring by DMT and SMT Internal Audit • Climate Change Act (2021/22 – High) • Internal Audit – Civil Contingencies (2021/22 – Substantial) Future Actions • Review of De-Carbonisation Plan. • Review scoring of business cases and pipeline of strategic projects with enhanced climate change considerations. There is a range of assurance sources across the three lines. 13 Lack of Housing Availability The Council, partner agencies and communities are unable to attract and retain working age people due to lack of housing and pricing Red 20 • The council has declared a Housing Emergency • Housing Strategy and Investment Plan funded and implemented/new housing delivery group established. • Islands Programme Award of Funding for infrastructure for worker accommodation on Mull - this is for • Progress monitoring by DMT and SMT Future • Housing summit and Action Plan being continually monitored/updated. • Local Housing Strategy updated and approved reflecting the Council's Housing Action Plan approved by Council in November 2024 and update presented to June EDI Committee. Limited third line assurance at current time However, pro- active work is with partner agencies is evident and review of the Housing Strategy undertaken.
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phase 1 site infrastructure to enable delivery of accommodation for workers and will meet clearly evidenced community need. • Deliver key worker housing pilots on Islay and Mull using RGD funding. Mull (Rockfield, Tobermory) ground works now completed utilising Island Infrastructure funding and Strategic Housing Fund. 14 Compliance with 'Prevent' Response to the Prevent duty is not properly embedded in the Council. Amber 9 • Council has nominated Prevent Spoc – Ch Exec has delegated authority to make arrangements to fulfil Council’s statutory duties on TACT • Prevent Multi Agency Partnership panel established and operating, and training provided. • External Training sessions from Police Scotland given to Education and Social Work • Participate in Prevent multi agency meetings to coordinate approach across public sector partners. • Progress monitoring by SMT and ELT Future • Complete development of training and awareness online module and continue to review and enhance training. • Develop situational risk assessment process with Home Office to address national and local risk and mitigations. • Review training of PMAP members and particular Chair and Vice Chair when these change from time to time. Limited third line assurance at current time However, comprehensive processes and approach in place and pro-active work with partner agencies are clear.