Our approach to identifying and managing risk is guided by our Risk Management and Assurance Framework, which is regularly reviewed and actively informs decision-making at Board level. Oversight is provided by the Audit and Risk Committee, with risk mapped and managed dynamically across all areas of activity. Strategic risks are captured within the Strategic Risk Register, which is updated annually and benchmarked against the Sector Risk Profile published by the Regulator of Social Housing.
The Audit and Risk Committee plays a central role in providing assurance to the Board. Alongside agreeing an annual programme of risk-based internal audits, the Committee has continued its focus on strategic risk oversight, including determining the range of stress scenarios against which the financial business plan is tested. This year’s scenarios were extensive, reflecting the instability of the wider economic environment, and, as in previous years, included scenarios that deliberately ‘broke’ the business plan so that mitigation strategies could be considered.
Should financial circumstances ever deteriorate to a level that threatened our finances, the options within our Recovery Plan would be deployed to safeguard the organisation. This plan includes cost reduction and deferral options and prioritises services to existing residents. It also recognises the importance of maintaining a flexible level of development commitment relative to our overall capacity, providing an important buffer in uncertain times.