Wandsworth Council's Audit Committee convened on Wednesday, March 11, 2026, to review the authority's risk management and risk appetite, with a particular focus on the huge, huge financial challenge
anticipated due to reduced funding.
The review of risk management, presented by the Director of Financial Services, highlighted that a follow-up review is scheduled for the summer. The initial review concerning potential corporate risks with the Director's Board has been delivered, and a training plan is now in place for risk management.
During the discussion, Councillor Mrs. Kim Caddy inquired about the council's risk appetite and how it assesses this to potentially embrace more calculated risks for improved outcomes and to adapt more nimbly to difficult service provision situations. The response detailed that the scoring matrix now incorporates both inherent and residual risks. A process is in place to accept risk based on the collectively set risk appetite, which is informed by initial input from service heads and overseen by Kevin (Assistant Director for Fraud, Risk and Insurance) and Paul (Director of Financial Services). The Governance Board, a recent initiative, also conducts quarterly risk reviews, providing Executive Directors with visibility across departmental risk management. It was noted that some departments were elevating a larger number of risks to the corporate level, while others had minimal, indicating a varied approach to risk appetite across departments.
The scoring matrix used to assess inherent and residual risks considers a range of criteria, including financial cost, changes in systems or personnel, reputation (political and general), sensitivity, legal standing, health and safety, safeguarding, potential for fraud, and alignment with strategic objectives and corporate priorities. The risk register is also referenced. Each criterion is assigned a weighting, resulting in a score that categorises risks as high, medium, or low.
The council is aiming to accept risk where appropriate, rather than automatically implementing additional controls for every identified risk. This approach is intended to enable quicker adaptation to challenging circumstances and to pursue better outcomes.
A follow-up review of risk management is scheduled for the summer, building on the progress made and the insights gained from the initial review and ongoing oversight by the Director's Board and the Governance Board.
