Agenda item

·       To highlight significant risks

·       Corporate Risk Assurance report

·       Deep dive schedule

 

Lead: Daniella Della-Cerra-Smith

5.1        The Chair noted that points were raised prior to the meeting regarding risk, and a response has been provided.

5.2        The Risk Manager acknowledged some of the updates on the Corporate Risk Register. There are two risks now categorised as red, around rail programmes and the endorsement of the STP. 

5.3        Cllr Baker-Rogers stated that she understood why there are two new risks in red and acknowledged that they will come out of the red category as further clarity becomes available.

5.4        The Deputy Chief Executive clarified that there are two main areas of uncertainty in terms of the what the Government announcement brought: HS2 and Northern Powerhouse Rail.  He noted that in time TfN will get more certainty around those areas and what it will mean for the North and for the organisation.  Once a response has been agreed, the risk will be reduced. TfN is clarifying externally and from members as to what the new Government approach means. 

5.5        The Strategy, Analysis and Communications Director responded in relation to Strategic Transport Plan; the Transport Strategy needs to have due regard to the current government policy which was announced on 4^th October.  The 14 December Board report set out what TfN believes the implications are and the recommendations going forward. The STP visions remain the same with just some minor adjustments being required. An updated report will be presented to Board in March 2024.

5.6         Cllr Baker-Rogers expressed her thanks for the explanation and acknowledged that TfN needs to find different ways of improving connectivity for the North without HS2 as an option.

5.7         Mr Thomas sought to gauge the Committee’s disappointment with regard to the announcement and asked where TfN’s refocus would lie.  The Deputy Chief Executive said that it is important to understand the financial background.  TfN will be pragmatic and work with DfT and other officials to ensure maximum opportunities are achieved for TfN and the outcomes remain the same.

5.8         Ms Reed asked whether there is a link between uncertainty and the two newly categorised red risks.  The Risk Manager explained the change in score was primarily due to the announcement and the uncertainty until further clarity is gained in relation to Network North.

5.9         Cllr Baker-Rogers said it is important to get over frustration and disappointment in terms of the cancellation of HS2 and it should be seen as an opportunity to achieve outcomes in a different way.

5.10       The Chair noted that disappointment is not often a word that one comes across in terms of risk and TfN needs to question whether the risk register provides enough insight into how effectively risks are being managed.  If uncertainty continues to be raised there will be an increase of red risks on the risk register. TfN needs to ask whether the organisation’s ability to consider risks is being properly reflected and how good the organisation’s foresight is: i.e., with hindsight, could TfN have managed the risk better.

5.11       The Strategy, Analysis and Communications Director highlighted that we have very good working relationships with the right people, and we do have effective controls in place.  The evidence supporting the STP is still the same despite the October announcement; but how we get there will look different.  Once the plan is adopted in March, the outcomes will be filtered into TfNs Strategic Risk Register.

5.12       Cllr Baker-Rogers asked whether the risk register could be presented differently and confirmed that she will present her ideas in an email.

5.13       Ms Reed presented an idea of using strategies and strategic themes as part of a risk map. The Strategy, Analysis and Communications Director highlighted that there is a strategy in draft in the Strategic Transport Plan and once adopted, there will be an opportunity to update outcomes in the strategic risk register.

5.14       The Risk Manager presented the corporate risk assurance report   and the background to the assurance framework implementation. Mr Thomas noticed that much of the framework is showing as “green”. The Finance Director stated that the assurance aspect was very valuable.  Many of the processes were set up in 2018 but there is an opportunity to step back and revisit how TfN delivers its business operation.

5.15       The Risk Manager presented the deep dive timeline. Mr Thomas asked whether the Audit Committee effectiveness could be considered including a future work programme for the Committee.  Cllr Baker-Rogers suggested a deep dive on the Conservative and Labour party manifesto’s, prior to the election, so an assessment can be made on the impact on TfN’s work.  The Finance Director noted that it is a critical piece of work that is needed and once done it would be shared with the Committee.

Resolved:

1)   That changes to the Corporate Risk Register be noted

2)   That TfN’s new corporate risk assurance report be endorsed

3)   That the updated schedule for risk deep dives at future Audit and Governance Committee meetings be endorsed.