Regional Council Workshop
Date: 21 May 2025
Time: 12.00pm
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Venue: |
Council Chamber Hawke's Bay Regional Council 159 Dalton Street NAPIER |
Agenda
Item Title Page
1. Welcome/ Apologies
2. Council's Risk Profile and sentiment survey 3
Regional Council Workshop
Date: 21 May 2025
Time: 12.00pm
|
Venue: |
Council Chamber Hawke's Bay Regional Council 159 Dalton Street NAPIER |
Agenda
Item Title Page
1. Welcome/ Apologies
2. Council's Risk Profile and sentiment survey 3
Council - Workshop
21 May 2025
Subject: Council's Risk Profile and sentiment survey
Reason for report
1. This report provides an update to councillors on HBRC’s approach to risk management so that there is a common understanding of the basis and rationale behind the approach adopted, and what this means for the Council.
2. This builds on work over the last 18 months to reset and improve HBRC’s risk management approach and the nature of risk reporting to the Council’s Risk and Assurance Committee.
3. The purpose of this update is to ensure all councillors have a good appreciation of the concepts and logic that underpin how risk management works across HBRC, and in particular understand the ask of them in completing a quarterly Sentiment Survey to assist with risk reporting.
Executive summary
4. Risk is merely the ‘effect of uncertainty on our objectives’.
5. Effective risk management therefore requires an effective, enduring and systematic approach to identify and address major areas of uncertainty related to the purpose, priorities and activities of HBRC.
6. In effect good risk management is good decision-making, taking a balanced view of how we are currently placed (risk profile) with what we can live with or need to do something about (risk appetite).
7. In effort therefore, good risk management supports good planning, resource allocation and decision-making.
Background
8. Attachment 1 provides an overview of the key aspects of HBRC’s risk management approach.
9. This risk approach forms the basis for regular monthly reporting to the Executive Leadership Team and quarterly reporting to the Risk and Audit Committee.
10. In April 2025, the Risk and Audit Committee endorsed an update to the Risk Management Policy that sets out the expectations for all staff and elected members of HBRC, together with guidance as to how these expectations can be met through the risk management approach.
11. The basis for rating (scoring) HBRC’s strategic risks has been to undertake regular risk Sentiment Surveys. These surveys enable the collective perspectives of the Executive Leadership Team and councillors to be considered in order to arrive at a shared confidence/concern rating for each of the area of strategic risk identified.
12. While there has been a good response rate to these Sentiment Surveys from the ELT, the response rate from councillors has been inconsistent, with some questions raised by councillors related to this.
13. This update is intended to provide an understanding of the core aspects of HBRC’s risk management approach, the ask of councillors and how the resulting risk profile is used.
Discussion
14. The key concepts that underpin this approach to risk include:
14.1. Redefining ‘risk’ in terms of the major areas of ‘uncertainty’ related to our purpose, priorities and operations as a University
14.2. Considering both the upside ‘opportunities’ that these areas of uncertainty/risk presents to us, as well as the downside ‘threats’
14.3. Using a simple one-page dashboard one-page visualize the risk profile of HBRC, expressed in terms of our vision and purpose, what ‘success’ looks like , the Groups of Activities that defined the work we do, together with the major areas of ‘uncertainty/risk’ that we need to understand and manage well to be successful
14.4. Simplified accountabilities – an Executive Team lead (tier 2) and a Business Owner (tier 3) responsible to ensuring these are relevant and reflect a whole-of-HBRC perspective
14.5. For each area of uncertainty/risk to have a one page management plan that provides transparency as to what this risk is, why it matters, what contributes to this, how it is managed, monitored and assured
14.6. Risk ratings determined on the basis of regular Sentiment Survey’s to reflect the level of confidence or concern you have that these areas of risk/uncertainty are being managed effectively
14.7. The results are intended to draw out any decisions and actions required to address any residual threats or capture future opportunities.
Next steps
15. Subsequent to this workshop, it is intended that all councillors are asked to complete a short 10-minute electronic survey each quarter.
16. These results will enable a better understanding of where there are matters requiring management focus and governance reporting and discussion.
Authored by:
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David Nalder Acting Risk Manager |
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Approved by:
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Susie Young Group Manager Corporate Services |
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Risk update |
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