Report of the Director of West Mercia Energy. [Report attached]

Contact: Nigel Evans.

That the medium risks presented be considered and endorsed.

Nigel Evans, Managing Director of West Mercia Energy, presented the Risk Management Update and advised that the organisation maintained a risk register containing 72 identified risks. He explained that most risks were effectively mitigated through operational controls and had been reduced to an acceptable level. The only remaining medium-risk issue related to the possibility of breaching the organisation’s capital risk threshold should energy market prices rise significantly after customer prices had been set. While the likelihood was considered low, the potential financial impact could be significant, and therefore the risk would remain on the register.

Members welcomed the report. Councillor Paul Davies commented that it was helpful for the risk to remain visible on the register and be reviewed regularly by the Committee. The Chairman also welcomed the approach taken, particularly the clear allocation of ownership for each risk, noting that this provided assurance that risks were being actively monitored and managed.

RESOLVED:

That the medium risks presented be considered and endorsed.