Council's Risk

Apparently, from the management report, auditors are risk averse. Internal control is a serious issue which Councils fail to appreciate, but there is little chance of adding more staff. It’s more likely that there will be staff reductions. When there is an internal control issue, management will be to blame – not the Council.
Executive management should provide guidance to the Council to help them assess the level and the kinds of risk that they find acceptable and not acceptable. Using this guidance and the risk assessment information provided, managers should work with the Council to document whether they want to accept the risk in a given situation, prevent or reduce the risk, or avoid the risk entirely.