Recommendation 4

The Cabinet Office and HM Treasury do not have a common view of risks across arm’s-length bodies. Departments collect risk data from their ALBs on a regular basis. The Cabinet Office does not request this, nor use it to identify systemic issues across government. There is no function within the Cabinet Office responsible for liaising on cross-departmental or ALB risk with the Government Finance Function, who lead on the oversight and reporting of risks to the Civil Service Board. We acknowledge that accountability for risk management in ALBs resides with departmental Accounting Officers, but the Cabinet Office is best placed to identify risks and share information on the risks identified, lessons learnt and good practice between ALBs. Recommendation: In its Treasury Minute response the Cabinet Office should set out how: • it will gain assurance that departments have developed a consolidated view of the risks presented by their ALBs; and • it will use departmental assessments of ALB risks to inform discussions on cross-cutting risk with the Government Finance Function.