Risk Register Approved Jan 2026

Source page 1

Council Minutes 21.01.2026
Appendix 3
Bradford On Tone Parish Council Business Procedures Risk Register
(Prepared by the Clerk / Responsible Financial Officer)
Approved by the Council 9 July 2024 Reviewed by Council 28 January 2025 and 21 January 2026
No

Short Risk
Description

Uncertainty
?

Leading To?

Resulting In?

Possible
Causes

“T”
action

Controls / Actions

1.

Misappropri
ation of
Council
Funds

Could
Council
funds be
misappropria
ted?

• Fraudulent
activity
• Unauthorise
d
expenditure

• Loss of
Council
reputation
• Lack of
funds to
proceed
with
authorised
expenditure
/ projects
• Legal action

• Inadequate
financial
procedures
• Lack of
internal
controls
• Procedures
not
followed

Treat

• Financial
Regulations
reviewed annually
by Council
• Council formally
approving all
expenditure
transactions in open
session
• Cheques require 2
Councillor
signatories /
authorisations
• Payments by Bacs
are put onto the bank
system by the Clerk
and authorised
independently by
two Councillors
• Spending limits set
in Financial
Regulations
• Blank cheques are
never signed

(Residual) (Residual) (Residua
Impact
Likelihoo
l) Risk
Assessme
d
Score
nt
Assessme
nt
Major
Rare
Low

Source page 2

No

Short Risk
Description

Uncertainty
?

Leading To?

2.

Payments (
By Cheque
or BACS)

Could a
payment be
made to the
wrong payee
or the wrong
amount paid?

• Late
payment
• Budget
overspend

3.

Late
Payments

Are invoices
paid in a
timely
manner

• Outstanding
Debt

Resulting In?

• Loss of
Council
reputation
• Budget
overspend
• Reduced
finance
available
for planned
expenditure
• Additional
costs e.g.
having to
pay a
second time
• Legal action
• Budget
overspend
• Reduced
finance
available
for planned
expenditure
• Broken
contracts
and thus

Possible
Causes

“T”
action

Inadequate
checking

Treat

• Lack of
Councillor
availability
• Council
meeting
cycle not
conducive
to getting
payments
authorised

Treat

Controls / Actions

• Internal audits
• Payment schedule
for Council prepared
by Clerk/RFO
• Payment schedule
approved by Council
• 2 Councillors sign
each cheque or do a
bank authorisation
and check the due
payment against the
invoices and list
approved by
Council,

(Residual) (Residual) (Residua
Impact
Likelihoo
l) Risk
Assessme
d
Score
nt
Assessme
nt
Moderate

Possible

Medium

• Items for Payment as Moderate
an agenda item at
every Council
meeting.
• Moving to on-line
banking will reduce
time taken to make
payment (i.e.
postage and cashing
of cheques)

Possible

Medium

Source page 3

No

Short Risk
Description

Uncertainty
?

Leading To?

Resulting In?

Possible
Causes

“T”
action

Controls / Actions

(Residual) (Residual) (Residua
Impact
Likelihoo
l) Risk
Assessme
d
Score
nt
Assessme
nt

• Application
of incorrect
VAT rate
• Lack of
staff
experience
and training

Treat

• Internal audit

Moderate

compensati
on claims
• Penalty
charges
being
incurred
• Difficulty
in
purchasing
goods and
services
• Inaccurate
perception
of
Council’s
financial
situation
4.

VAT

Are the
correct
amounts of
VAT
reclaimed

• Budget
overspend
• Inaccurate
VAT claims
submitted

• Loss of
Council
reputation
• Possible
action /
fines by
HMRC
• Reduced
level of
finance

Likely

Medium

Source page 4

No

Short Risk
Description

Uncertainty
?

Leading To?

5.

Loss of
informatio
n/
financial
data

Whether or
not the
Council
could make
payments
and produce
legally
required
financial
information

• The council
operating in
an
unprofessio
nal manner

6.

Insurance

Whether or
not the
Council has
appropriate
cover to meet
potential
losses and /
claims

• Inability to
replace
assets
• Inability to
meet claims
made
against the
Council

Resulting In?

available
for planned
expenditure
• Loss of
Council
reputation
• Critical
/adverse
audit report
• Legal
action
• Laptop
purchased
specifically
for Council
business
and an
external
hard drive
for back-up
• Loss of
Council
reputation
• Inability to
carry out
responsibili
ties due to

Possible
Causes

“T”
action

Controls / Actions

• Poor record
keeping
• Insecure
storage
methods

• In adequate
scrutiny of
insurance
cover taken
• Insurers not
updated of
equipment
changes

Treat

• Insurance cover
reviewed annually
• Asset register
maintained and
reviewed regularly
• Risk management
systems in place and

(Residual) (Residual) (Residua
Impact
Likelihoo
l) Risk
Assessme
d
Score
nt
Assessme
nt

Major

Unlikely

Medium

Major

Unlikely

Medium

Source page 5

No

7.

Short Risk
Description

Budget

Uncertainty
?

Is the budget
set at a level
to enable the
Council to
fulfil its
plans without
either
significant
under or over
spending?

Leading To?

Resulting In?

Possible
Causes

• Increased
insurance
cost /
excessive
insurance
premiums

lack of
equipment
• Severe
financial
difficulties
• Legal
action

• Inability to
deliver
services and
planned
projects

• Loss of
Council
reputation
• Broken
contracts
and thus
compensati
on claims

• Insurers not
notified of
changed
circumstanc
e
• Insurers not
notified of
new events
• Poor
financial
planning g
• Poor
understandi
ng of
council
finance and
budget
matters
• Poor project
planning

“T”
action

Controls / Actions

(Residual) (Residual) (Residua
Impact
Likelihoo
l) Risk
Assessme
d
Score
nt
Assessme
nt

reviewed at least
annually

Treat

• budget monitoring
report at each
Council meeting
• Emergency
expenditure is
reported to
councillors as soon
as possible
• Unbudgeted
expenditure is
avoided as far as
possible
• Moving to on-line
banking will enable
more timely
checking of balances

Moderate

Possible

Medium

Source page 6

No

Short Risk
Description

Uncertainty
?

Leading To?

Resulting In?

Possible
Causes

“T”
action

Controls / Actions

8.

Budget

Budget not
calculated
and agreed
for
2025/2026

• Inability to
deliver
services and
planned
projects
• Excessive
amounts in
bank
accounts

• Loss of
council
reputation
• Depleted
reserves

Treat

• Monitor expenditure
• All payments to be
approved by Council
• Any financial
decisions to be taken
after information of
impact on finances is
provided
• Meetings to agree
budget and precept
are identified in the
calendar of meetings

9.

Reserves

Are the
Council’s
reserves at an
appropriate
level?

• Setting an
unnecessaril
y high
budget (if
reserves are
too high)
• Lack of
resilience
for
expenditure
plans (if

• Loss of
Town
Council
reputation
• Loss of
Council
reputation
• Poor audit
reports
• Inappropria
te spending

• Poor
financial
planning
• Poor
understandi
ng of
council
finance and
budget
matters
• Knock-on
effect of
Somerset
Council
financial
crises
• Inaccurate
budgeting
• Projects not
proceeding
as planned

Take
Advant
age &
Treat

• Implement project
plans
• Monitor reserves
• Implement agreed
reserves policy
• Identify and agree
reserve levels and
contingency budgets
when the annual
budget is agreed

(Residual) (Residual) (Residua
Impact
Likelihoo
l) Risk
Assessme
d
Score
nt
Assessme
nt
Major
Rare
Low

Moderate

Unlikely

Low

Source page 7

No

Short Risk
Description

Uncertainty
?

Leading To?

Resulting In?

Possible
Causes

“T”
action

reserves too
low)
10.

Play Area

Is play
equipment
inspected and
maintained

• Lack of
maintenance
• Health and
safety risks

• Loss of
Council
reputation
• Possible
injuries to
the public
• Legal
action

• Lack of
Councillors
/ Clerk
awareness

Treat

11.

Council acts Whether or
Ultra Vires not the
Council acts
in a lawful
manner

• Council
makes an
unlawful
decision or
one it had
no power to
make

• Loss of
Council
reputation
• NonCompletion
of
associated
project or
implementa
tion of
decision
• Legal
action

• Lack of
information
• Lack of
appropriate
subject
knowledge
• Nonadherence
to relevant
legislation,
policy or
procedure

Treat

Controls / Actions

• Agree ear marked
reserves when the
annual budget is
agreed
• Weekly safety check
of play area
undertaken and
written record kept
• Annual play
inspection to be
arranged
• Training (25.06.24)
by individual doing
weekly inspections
• Trained Clerk
• Governance
documents reviewed
regularly
• Membership of the
Association of Local
Councils
• Councillor training
• Clerk is member of
the Society of Local
council Clerks
• Clerk holds the
Certificate in Loacl
Council

(Residual) (Residual) (Residua
Impact
Likelihoo
l) Risk
Assessme
d
Score
nt
Assessme
nt

Major

Possible

Medium

Major

Rare

Low

Source page 8

No

Short Risk
Description

Uncertainty
?

Leading To?

Resulting In?

Possible
Causes

“T”
action

12.

Governance
and Policy
Framework

Whether or
not the
Council
makes
decisions in
accordance
with its
governance
and policy
framework

• Inconsistent
decision
making

• Loss of
Council
reputation
• Conflicting
Council
priorities
• Conflicting
council
decisions
• Legal
action

• Inadequate
Councillor
training
• Inadequate
knowledge
of Council
policies

Treat

13

Councillor
Numbers

Whether or
not the
Council is
able to
recruit /
retain
sufficient
people as
Councillors
to be able to

• Somerset
Council
appointing
people to
the Parish
Council
• Delays in
decisions
for Parish
Council
business

• Loss of
Council
reputation
• Decisions
being made
by people
unfamiliar
with the
village

• Lack of
knowledge
of Parish
Council
activities
• Lack of
understandi
ng of parish
councils
• Ineffective
advertising

Treat

Controls / Actions

Administration
(CilCA)
• Councillor training
opportunities
regularly circulated
to Councillors
• Councillors
completed Register
of Interest Forms
held by Clerk and
copies forwarded to
Somerset Council
• Councillors Register
of Interest
information
published on
Council’s website
• Chair writing a
regular article for
parish magazine on
council activities
• Using available,
existing
communication
methods to promote
council activities,
e.g. noticeboards,
magazine

(Residual) (Residual) (Residua
Impact
Likelihoo
l) Risk
Assessme
d
Score
nt
Assessme
nt
Major

Unlikely

Medium

Moderate

Unlikley

Low

Source page 9

No

Short Risk
Description

Uncertainty
?

Leading To?

Resulting In?

operate
effectively
14

Communicati Whether or
ons
not the
Council is
able to
provide timely
information to
residents

Possible
Causes

“T”
action

Controls / Actions

(Residual) (Residual) (Residua
Impact
Likelihoo
l) Risk
Assessme
d
Score
nt
Assessme
nt

of casual
vacancies
• Disgruntled
residents
• Poor local
council
decision
making
• Lack of
community
involvement

• Loss of
council
reputation

• Lack of
information
emanating
from
Principal
Authority
• Information
not received
in a timely
manner
• Information
not passed on
in a timely
manner

Treat

•

•

•

Somerset
Councillors
attend parish
council
meetings
Parish Council
Chair writes an
article each
month for the
village
newsletter
Parish Council
meeting
information
published on
parish council
website

Moderate

Possible

Medium

Source page 10

Risk Assessment Grid

Rare (< 6%)
Unlikely (6 - 20%)
Possible (21 – 50%)
Likely (51 – 80%)
Almost Certain (> 80%)

1
2
3
4
5

Negligible
1
Low
Low
Low
Low
Low

Minor
2
Low
Low
Low
Medium
Medium

T Treatments: Tolerate, Treat, Transfer, Terminate, Take advantage

Moderate
3
Low
Low
Medium
Medium
High

Major
4
Low
Medium
Medium
High
Very High

Catastrophic
5
High
High
High
Very High
Very High