General Risk Assessment and Management 2025/26
Adopted 12th May 2025
Each Council should have in place a system to help it to manage risk. This system will be simple for the smallest Parishes and more complex for larger Parish and Town Councils. A Council’s internal auditor may use this risk management system to help to identify what tests to carry out as part of the audit.
Risk management is important. The failure to manage risks effectively can be expensive in financial terms and in terms of service delivery. Most Clerks will already be assessing and managing risks in some way or other but there may be room to improve and document existing practices.
Members are ultimately responsible for risk management because risks threaten a Council’s ability to achieve its objectives. The Clerk should therefore ensure that Members should:
- Identify the key risks facing the Council
- Evaluate the potential to the Council of one of these risks taking place
- Agree measures to avoid, reduce or control the risk or its consequence
Risk Assessment Table
| Area | Risk | Risk Level H/M/L | Potential Impact H/M/L | Management / Control of Risk | Review / Action Required |
|---|---|---|---|---|---|
| Assets | Protection of physical assets including the Parish Rooms, Museum, public toilets etc | M | H | Insured. Value increased as necessary. Asset register. Museum building management delegated to Museum Trust. Review risk assessments annually. Periodic inspections. Action any defects asap after notification. Property & Business Development Manager in place with specific remit for maintenance and repairs schedules. | Review insurance and asset register annually. |
| Assets | Security and maintenance of buildings, equipment etc. Hazards to service users, public and staff | M | M | Locked doors at entrance of building. Keys are held by staff with spare copy held in the key safe. Key holder policy in place. External key holding company in place for out of hours emergencies. Fire Procedures, appliances/equipment checking. Produce risk assessments. Ensure contractors have correct cover/certificates. | Maintain existing procedures. Property & Business Development Manager in place. New key cabinet in place with catalogued system. Review risk assessments annually. Action any defects asap after notification. |
| Finance | Banking (errors or irregularities) | L | L | Adherence to adopted financial regulations. Investment strategy reviewed annually. Internal controls, internal and external audit. | Maintain existing procedures. |
| Finance | Risk of loss of income – precept | L | M | Ensure adequate reserves. Review insurance annually. | Maintain existing procedures. |
| Finance | Loss of cash through theft or dishonesty | L | L | Adherence to adopted financial regulations. Review insurance. | Maintain existing procedures. |
| Finance | Loss of investment funds with CCLA Property Fund | L | M | Ensure that the fund is a safe and reasonable investment by engaging with Independent Financial Advisor. | Monitor performance of the fund. Acknowledge long-term nature of investment. |
| Finance | Financial controls and records | L | L | Adherence to adopted financial regulations. Internal controls, internal and external audit. | Maintain existing procedures. |
| Finance | Compliance with VAT Regulations, PAYE & NI | L | H | Comply with HMRC regulations. Quarterly returns to be made. Internal controls. | Maintain existing procedures. |
| Finance | Budget preparation and cash-flow (inadequate) | L | M | Sound budgeting to underlie annual Precept. Council receives detailed budget forecasts monthly. Precept derived directly from actuals, forecasts and future need. Expenditure against budget reported to the Council monthly. | Maintain existing procedures. |
| Liability | Risk to third party, property or individuals | M | M | Public Liability Insurance in place to £10m. Separate risk assessments for allotment sites and burial grounds – checks undertaken as required. Review insurance cover annually. | Action any defects asap after notification. |
| Liability | Compliance with Law (Employment, transparency, FoI etc.) | M | M | Membership of various national and regional bodies, i.e. NALC & SLCC. Employer Liability Insurance in place. Internal Audit. | Maintain existing procedures. |
| Liability | Safety of Staff and visitors | M | H | Lone working arrangements in place. Key holder policy in place. | Maintain existing procedures. |
| Liability | Ensuring activities are within legal powers | M | H | Clerk clarifies legal position on any new proposal. Training for Clerk & Councillors as required. General Power of Competence adopted. | Legal advice to be sought where necessary. Continuous professional development of Clerk essential. |
| Administration | Incomplete register of interests (Councillor) | M | L | Regular reminder to Members. Code of Conduct training for Members. | Maintain existing procedures. |
| Administration | Business Continuity / Loss of Council records | L | H | Back up files, passwords being held off-site, agreed procedures for Council administration. | Maintain existing procedures. |
| Administration | Long-term adverse impacts from poor decision-making or poor implementation. Reputational damage and loss of confidence | L | H | Adherence to adopted Standing Orders – reviewed annually. Holding correct meetings / consultation. Code of Conduct. Adherence to policies and procedures by all staff and Councillors. Pursue Councillor and staff training when available. | Maintain existing procedures. Pursue full bespoke training periodically to ensure new Cllrs are fully informed of correct procedures, impacts and roles of the staff, the Councillors, and the Council as a whole. |
| Administration | Loss of Qualified Clerk | L | H | Impact on General Power of Competence – unable to run certain services or pursue projects. HR Committee trained and able to recruit qualified person to fill vacancy. | Consider other staff obtaining CiLCA. |
| Contractors | Lack of professionalism and non-compliance with law and procedures | M | M | Follow procurement procedures as set out in Financial Regulations. Request copies of contractor’s insurance, risk assessment and method statement. | Property & Business Development Manager in place with specific remit to manage contracts. |
Procedural Reviews
| Council Activity | Frequency of Review | Responsibility | Comments | Date Last Reviewed |
|---|---|---|---|---|
| Insurance | Annually | Clerk | April 2025 | |
| Assets inspection | As indicated in allotment and burials risk assessments | Asset Management Committee | Several inspections per year undertaken, including tree survey carried out 2024/25. | 2024 |
| Update asset register | Annually | Clerk | March 2025 | |
| Banking arrangements | Annually | Clerk | January 2025 | |
| Budget agreed | Annually | Full Council | December 2024 | |
| Precept agreed | Annually | Full Council | December 2024 | |
| Budget monitored | 3 monthly (minimum) | Full Council and Clerk | Monthly | Ongoing (monthly) |
| Bank reconciliation | Monthly | Full Council and Clerk | Monthly | Ongoing (monthly) |
| Review of Financial Regulations | Each Council term. New FR to be adopted when published | Full Council and Clerk | March 2025 | |
| Review of General Risk Assessment | Annually | Full Council and Clerk | On agenda for May 2025 | May 2025 |
| Review of Investment Strategy | Annually | Full Council and Clerk | On agenda for May 2025 | May 2025 |
| Members register of interests | Per election cycle or as changes occur | Individual Councillors | May 2025 | |
| Staff appraisals, including pay, contracts | Annually | HR Committee and Clerk | April 2025 | |
| Internal Audit | Bi-Annually | Internal Auditor | April 2025 | |
| External Audit | Annually | Clerk | On agenda for June 2025 | September 2024 |
| Minutes properly produced and published | At each formal meeting | Clerk and other staff | Monthly (website) | Ongoing |
| Standing Orders Reviewed | Each Council term | Full Council and Clerk | Reviewed annually in May. | May 2025 |