Agenda item

The Director of Corporate Services presented the report to Members.

In March 2024, the Audit Committee supported the updated Lancashire Fire and Rescue Service (LFRS) risk management policy, procedure, and the associated organisational risk register. This aligned with ISO 31000:2018 standards, was in line with the National Fire Chiefs Council (NFCC) template and represented good practice in the sector. Effective risk management practices were integrated into quarterly Corporate Performance Board (CPB) meetings agendas, provided strategic oversight, ensured legislative compliance, optimised resource allocation, and facilitated risk reporting to the Combined Fire Authority.

The Audit Committee was a cornerstone of the Authority’s governance framework, tasked with providing independent assurance to governance stakeholders regarding the adequacy of LFRS’s risk management framework, annual governance processes, and internal control environment. Its primary function included evaluating the effectiveness of the Authority’s risk management arrangements.

The Civil Contingencies Act (CCA 2004) set out the legal framework for contingency arrangements to assess, plan and advise against LFRS organisational risks, be it departmental or corporate, however, there was no prescriptive way within the framework of doing that. Therefore, the Service had the freedom to manage risk using a method that ensured a clear governance structure that best met the needs of the business.

This moral and statutory duty not only required LFRS to take all reasonable actions to safeguard its employees, assets, and the public, but also ensured that it was not financially or operationally disrupted. It could meet this duty by ensuring that risk management played an integral part in the governance of the Service at a strategic, tactical, and operational level.

The risk management policy and procedure at LFRS ensured compliance with legislative requirements and NFCC good practice. The policy and procedure were aligned with ISO 31000:2018, to ensure an accurate description and appropriate monitoring and management of LFRS risks. Additionally, a tiered approach to risk was in place which allowed for escalation and de-escalation as needed.

Effective risk management practices aligned with ISO 31000:2018 yielded numerous benefits for LFRS that included proactive risk mitigation, enhanced decision-making, clear accountability, and improved financial control.

Risk Management was integrated into quarterly CPB meetings, as a standing agenda item LFRS aimed to provide strategic oversight of the risk management process. Overall, the measures enabled LFRS to fulfil its legislative duties and optimise resource allocation whilst providing a structured mechanism for reporting on risk to the Audit Committee. The Corporate Risk Register was reviewed quarterly, and updates provided by all pertinent risk managers and owners.

Members noted that the top three risks identified in the risk register were:

-        Loss of Funding (it had been confirmed that the Service would receive a 1-year settlement for 2025/26, however, a multiyear financial settlement that ensured financial sustainability was likely for 2026/27);

-        Telecommunications (actions were noted on page 80 of the agenda pack - It was highlighted that a planned power outage took place at the Service’s Leadership & Development Centre to test the Business Continuity Plan and testing also took place for the scenario of a Service-wide outage due to flooding); and

-        Retention and Recruitment of On-Call Staff (actions were noted on page 87 of the agenda pack – On-Call availability had begun to improve with the measures in place).

In response to a question from County Councillor Singleton in relation to the measures in place to mitigate the risk for telecommunications, the Director of Corporate Services advised that he would investigate the measures and feedback his findings at a future committee meeting.

County Councillor Shedwick commented that the Service was well represented by the CFO regarding the implementation of the new mobilising system and asked how the Risk ID 11h ‘Loss of NWFC Mobilising System’, on Page 87 of the agenda pack, was a closed risk.

Councillor Hugo highlighted that no implications had been identified in terms of Equality, Diversity and Inclusion (EDI) on Page 76 of the agenda pack and, although LFRS was nationally recognised for having outstanding culture, she suggested it would be prudent to consider adding EDI to the risk register. The impact of the EDI risk to the Service could be catastrophic, as seen in other Fire and Rescue Services. The Director of Corporate Services advised that he would find information outside of the meeting about how that risk was managed and would feed back to a future meeting.

Members discussed EDI in the Fire Service, that LFRS had outstanding culture regarding EDI, and work in that area would need to be continuous.

It was suggested that a training session be delivered to Members around EDI & Culture to explore the issues respectfully and openly and all Members agreed. The Director of Corporate Services advised that the option of training may be able to be provided at a future Strategy meeting and would discuss with the Executive Board.

Laura Rix believed that an Audit on EDI had previously taken place. She would investigate and bring any findings back to the committee.

The Chair stated that the risk map in the agenda pack was very useful for providing risk information.

Resolved: - That the Committee: -

i)                Endorsed LFRS’s risk management arrangements: and

ii)              Noted the up-to-date Corporate Risk Register and its content.