The General Purpose and Audit Committee  considers the Council’s Risk Register. The Council must manage and mitigate its risks to ensure the financial stability of the organisation and ability to meets its statutory functions is not compromised. 

The risks are discussed with the Leader of the Council, Deputy Leader of the Council/Cabinet Member for Resources and the council’s external auditors to further demonstrate the council’s robust approach to risk management. The level of uncertainty and risk cannot be underestimated. In addition to issues and risks arising from the External Environment and those which are internal to Bexley are set out in Section 3, further risks which need to be considered are:

• spending and income pressures - The Council’s main spending concerns over the next five years have already been highlighted within this report and in previous Medium Term Financial Strategy updates. The financial impact of these pressures is based on the latest information available. It is also based on a number of assumptions regarding current and forecasted demand and income levels – any of which could be incorrect and therefore will remain under regular review, both as part of monitoring forecast spend and income in 2025/26 and financial planning for subsequent years
• social care market - Direct care provision is predominantly outsourced and commissioned from the independent sector. The care market is volatile because of Inflationary pressures, workforce challenges and the potential for provider failure, which presents a further financial risk to adult social care costs
• delivery of mitigations - Financial plans include mitigations that have been agreed as part of previous budget setting processes. No contingency allowance has been made specifically to cover one off slippage, therefore every £1 in slippage or non-delivery of savings must be met by compensatory savings or additional income on a £1 by £1 basis. The mitigations are specifically monitored as part of the monthly budget monitoring.
• interest rates
• Value for money (VFM) – The auditors issued their final audit results report for the 2023/24 financial year on 27 March 2025. In this report they provided an update on their Value for Money risk assessment.  The report stated that: "We conclude that the Council has proper VFM arrangements in place in relation to financial sustainability”
• The funding reform review significantly hinders medium-term planning and strategic investment in services and adds further uncertainty over medium-term funding