Risk management

The Council has a statutory responsibility to have arrangements in place for managing risks.

The Local Government (Accounts and Audit) Regulations state that “A local authority is responsible for ensuring that the financial management of the authority is adequate and effective and that the authority has a sound system of internal control which facilitates the effective exercise of the authority’s functions; and includes arrangements for the management of risk.”

The Council recognises that there are risks involved in everything it does and it has a duty to manage these risks in a balanced, structured and cost-effective way. Our approach to risk management is detailed/ outlined within the Council’s Risk Management Policy and is designed to ensure that:

  • New and emerging risks continue to be identified promptly and assessed realistically;
  • Significant risks are escalated appropriately;
  • The focus is on risks that, because of their likelihood and impact, make them management priorities;
  • Effective mitigating action is taken to manage identified risks;
  • All reasonable steps are taken to reduce risks to the lowest acceptable level.

Risks are regularly reviewed by the allocated risk owner(s) and there is an escalation process for the most significant risks (i.e., those assessed as with a net red score) which ensures that senior management and Members are aware of those risks that pose the most serious threat to the Council and how they are being managed.

High-level risks

Areas where high-level risks have been identified are:

Risks have been identified around:

  • securing funding to deliver the UK Central Programme
  • budget pressures on Children’s services
  • Medium Term Financial Strategy (MTFS) delivery due to pressures in Children’s Services
  • social care reforms and inflationary pressures
  • harm to employees or contractors caused by not sharing warning markers information
  • keeping residents safe in homes managed by Solihull Community Housing

Mitigating actions have been identified and are regularly reviewed by the Corporate Leadership Team.

Risks have been identified concerning:

  • housing benefit expenditure for temporary accommodation not reducing or instead increasing
  • insufficient funds being available for administering of the Discretionary Crisis Fund

Mitigating actions have been identified and these are regularly reviewed by the Directorate Leadership team.

Risks have been identified around:

  • significant cost increases for children’s residential homes
  • the High Needs Block budget stabilisation
  • pressures on the SEND Transport budget

Mitigating actions have been identified and these are regularly reviewed by the Directorate Leadership team.

Our risk register

The Council's risk report describes these risks in more detail and the steps that we are taking to mitigate them.