North-east council chiefs have revealed their 12 biggest fears for the local authority in the coming year.
In a report which will be presented to Aberdeenshire councillors today, officers have laid out a comprehensive list of the risks facing the council.
These include a drop in the price of oil, a crisis in a locally based industry, the loss of senior staff, or – crucially – budget pressures.
Auditors have highlighted the 12 “major” threats which have a 75% chance or higher of happening – which could cost the council more than £100,000, massive reputation damage or a reprimand from the government.
The report to the scrutiny and audit committee comes as councillors prepare to slash more than £17million from next year’s budget.
Last night committee chairwoman councillor Gillian Owen said her colleagues need to appreciate the risks involved in decision making at a local government level.
“It’s about knowing and understanding the risks,” she said.
“That’s the key. Some of them you have absolutely no control over, we just have to have measures in place to mitigate them should they happen.
“The major risk currently is not having enough money from the government grant – that’s something we have no control over.”
Aberdeenshire Council will find out next week whether or not the government grant it receives will be cut. Even if it is not, councillors are facing a £50million budget black hole over the next five years.
Mrs Owen said: “I don’t think risk is highlighted enough. I think some of the decisions we as councillors make in committees, I’m not sure we always understand the level of risk we could be putting the council in.
“Take the budget changes that are being discussed – do we understand and realise the impact of making millions of pounds of cuts?”
In his report to the committee, business services director Ritchie Johnson says: “The review fully engaged directors and their management teams.”
Members of the Scrutiny and Audit committee have been asked to discuss and note the risks highlighted and are expected to call for an updated report in December next year.