Annual Review of Risk Management 2025 to 2026
Purpose and recommendations
The purpose of this report is to review the improvements to risk management over the last financial year April 2025 to March 2026. This report is a look back and sets out the transformational change to the management of risk in SEPA during the period.
This report was approved for submission to the Agency Board by the Audit, Risk and Assurance Committee at their meeting on 16 June 2026. A summary of the principal risk register can be found on page 1 of the report. For additional details on principal risks, Board members should refer to the Audit, Risk and Assurance Committee paper from 16 June 2026.
The Agency Board is asked to:
- Review and note the annual review of risk management 2025-2026.
- Note that an in-depth discussion took place at the Audit, Risk and Assurance Committee (ARAC) regarding principal risks 1 and 2 which were at a point in time in Q4 (January - March) 2025-2026. This discussion centred on the climate post-election, emerging clarity around public service reform, SEPA’s ability to react, and if the residual risk score of risks 1 and 2 reflected SEPA's preparedness to respond at pace to a changing environment.
In addition, there was recognition that several of the risks have a higher residual risk score, with an amber RAG status, which could be perceived as a challenge to our ability to adapt to the pace of change.
The Chief Executive and Deputy Chief Executive gave additional assurance during the meeting to support the context within risks 1 and 2 which position well SEPA as being prepared in the context of public service reform.
Author: Alanna Sloan, Assurance and Risk Manager, Assurance and Risk
Corporate Leadership Team Sponsor: Kirsty-Louise Campbell, Deputy Chief Executive
Date: 19 June 2026
Read the Annual Review of Risk Management 2025 to 2026 (MS Word, 144 kB)