What Makes an Effective Risk Register?

What Makes an Effective Risk Register?

Estimated reading time: 5 minutes

Every parish and town council should have a Risk Register, but not every Risk Register is an effective one.

Too often, it's seen as a document that's reviewed once a year, approved at a meeting and then filed away until the following year. In reality, a Risk Register should be a living document that helps councils make informed decisions, manage uncertainty and protect public funds.

So, what makes a good Risk Register?

What is a Risk Register?

A Risk Register is simply a record of the key risks facing a council, the controls already in place to reduce those risks, and any further actions that may be required.

It's not about expecting something to go wrong.

It's about asking, "What could happen, how likely is it, what would the impact be, and what are we doing about it?"

Think Beyond Health and Safety

When people hear the word "risk", they often think about accidents or insurance claims. While these are important, councils face many different types of risk.

For example:

• Financial risks, such as fraud or budget overspends.

• Governance risks, including non-compliance with legislation or outdated policies.

• Operational risks, such as contractor failures or key staff absence.

• Reputational risks resulting from poor communication or decision-making.

• Cyber risks, including phishing emails, weak passwords or data breaches.

A good Risk Register considers all aspects of the council's work.

Focus on Controls, Not Just Risks

One of the most common mistakes I see is a list of risks without any explanation of how they're being managed.

For example:

Risk: Fraud.

That tells us very little.

Instead, consider the controls already in place.

• Dual authorisation for payments.

• Monthly bank reconciliations.

• Separation of financial duties where possible.

• Internal and external audit.

• Up-to-date Financial Regulations.

These controls significantly reduce the likelihood of fraud occurring.

The Risk Register should demonstrate not only what the risks are, but how the council is actively managing them.

Review It Throughout the Year

Risks change.

A new play area, a major grant, changes in staffing or new legislation can all introduce new risks or alter existing ones.

Rather than reviewing the register once a year, consider whether it should also be reviewed:

• after significant projects

• following incidents or complaints

• when new services are introduced

• after internal audit recommendations

• during budget setting

Regular reviews help ensure the document reflects the council's current position rather than where it was twelve months ago.

Keep It Practical

A Risk Register shouldn't be filled with generic statements copied from another council.

Instead, ask:

• Does this risk actually apply to us?

• Are our controls accurate?

• Would someone unfamiliar with the council understand how this risk is managed?

• Have we identified who is responsible for reviewing it?

The more specific the register is to your council, the more useful it becomes.

Remember That Risk Isn't Always Negative

Managing risk doesn't mean avoiding it altogether.

Sometimes councils choose to accept a level of risk because the benefits outweigh the disadvantages.

For example, installing new play equipment, running community events or applying for grant funding all involve some level of risk. Good governance is about understanding those risks and putting appropriate measures in place, not avoiding worthwhile opportunities.

Final Thoughts

A Risk Register isn't simply another document to satisfy an audit requirement.

When used effectively, it becomes a valuable management tool that supports decision-making, demonstrates good governance and helps councils remain resilient in an ever-changing environment.

Like many governance documents, its value isn't in having one—it's in using it.

At Domino Council Services, we believe governance should be practical, proportionate and easy to understand. Whether you're reviewing your Risk Register for the first time in years or simply looking for a fresh perspective, taking the time to ensure it reflects your council today can make a significant difference tomorrow.