Agenda item

L Morris presented a report which provided an update on the Strategic Risks of the Mayoral Combined Authority (MCA), highlighted risks that had closed, new risks added and an update on actions.

Members were advised that the PTE’s risks had been analysed alongside those of the MCA to look at them in totality and create a global position in terms of the risk environment.

A block of risks remained, predominantly related to the operational transport element and these had been analysed further to map against the concerns raised by the Advisory Panel.  These would be further reviewed at the combined Management Board and risk workshop in November.

Plans were in place to review the risk management frameworks of both the PTE and MCA, as well as good practice guides from outside of the organisations to bring together a new framework to operate from April 2022 and build in a consistent and standard approach across the organisation.

Key points arising from members’ questions and discussion are summarised below:

·       The potential challenge presented to the organisation by the election of a new Mayor, in that any change of leadership could cause disruption, was acknowledged, but the wording of the risk would be reviewed to ensure that the context was clear.

·       A new risk had been added in relation to the integration process given that it had the potential to create disruption to the focus of the business and impact on the delivery of the Corporate and Business Plan.  There was a separate integration risk register which provided a greater level of detail.

·       In response to feedback that the significant risks in relation to public transport were not clearly visible in the heatmap, it was noted that this was referenced in Risk 5 of the budget and financial management risks ie the systemic loss of commercial viability of the SYPT network and calls for greater public subsidy.  It was also noted that there was limited scope to mitigate locally beyond lobbying for Government support.

·       The aforementioned dashboard, with accompanying Gantt charts, would be key in enabling the committee to focus on the top 5-10 risks.  R Adams highlighted several key risks that might be included within that, namely:

o   public transport

o   economic restructuring and rebalancing which given the funding mix constraints, was a long-standing issue in South Yorkshire

o   the impending comprehensive spending review and potential risks to local authority and partners’ delivery programmes in a post pandemic world, and

o   An internal operational risk which could potentially impact on the capacity and capability to deliver the programme arising from significant issues in the labour market and recruitment to certain posts.

R Adams concluded that a concerted view of the Management Board’s top risks would be brought to the Committee.

In addition to those risks highlighted by R Adams, R Jarvis also referred to the critical risk of climate change.

The huge challenges and risks in relation to the public transport network were discussed as was the difficulty in strategic planning, given the need for Government direction and financial support.

It was noted that the Transport & Environment Board were currently looking at commissioned research as to what a good network could look like and a paper in relation to regional options was due for MCA consideration shortly.

R Jarvis advised that there was a strong focus on public transport at the Sub-Panel and highlighted the fragility of operators due to lack of patronage and the risk that they could either fold or withdraw from providing future service if there was no financial gain.  R Jarvis noted that this issue would become more acute from 2024 when the current tram concession – which has insulated the MCA from revenue and operating risk – ends, with full responsibility returning to the MCA.

A Marshall added that the Sub-Panel had noted the integrated nature of the travel systems and how they impacted on each other, which in turn affected the passenger response.

RESOLVED – That members of the Audit, Standards and Risk Committee present reviewed the updated position on strategic risks and the associated controls and actions planned.