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Transcript of How should housing providers manage risk? pdfs/Presentations... · PDF file Exec to...

  • Greg Campbell 26 April 2013

    How should housing providers

    manage risk?

  • Campbell Tickell

    • Multidisciplinary management consultancy; working UK

    wide; fifteenth year in operation; over 500 clients

    • Principal areas of focus: housing, social care, regeneration

    • Clients have included: DCLG, HCA, TSA, Charity

    Commission, NHF, NCVO, councils and ALMOs, housing

    associations, care providers, charities, developers and

    housebuilders, maintenance contractors, solicitors

    • Specialist areas include: governance, strategy, business

    planning, business assurance, performance, new business

  • There’s a lot of it about…

    • Financial capacity risk

    • Liquidity risk

    • Diversification risk

    • Lack of diversification risk

    • Development risk

    • Growth risk

    • Stagnation risk

    • Regulation risk

    • Demand risk

    • Supply risk

    • Sale and leaseback risk

    • Reputational risk

    • Business continuity risk

    • Health and safety risk

  • In all sectors….

    • Cosmopolitan Housing

    • Winterbourne View

    • Mid-Staffs NHS Trust

    • RBS, HBOS, PPI

    • Lakanal House

    • Connaught, ROK, Kinetics

    • KPMG

    • Horsemeat

  • “The good old days”

    • A simpler environment

    • Housing providers (relatively) straightforward

    • Big = 15-20,000 homes

    • Inspection

    • Prescriptive regulation

  • Traditional approaches to risk

    • Risks? To be avoided! Leave risk to the auditors

    • Remember the Corpy risk list…

    • For instance - 1/3 of your business in supported housing…

    • Focus on internal controls

    • Focus on operational

    assurance – “Are we

    doing things right?”

  • But now…

    • Diversification - range of business streams

    • Commercial competition; for-profit providers

    • Non-RP parents

    • Care and support, social enterprise

    • Market renting, market sale

    • New partners

    • Joint ventures

    • Different kinds of housing animals

  • And what’s more…

    • Regulation more hands-off

    • Albeit now more complex

    • No inspection

    • Increasing focus on governance

    • Greater onus on Boards

  • The big question for Boards and Execs

    How do you know

    you’re any good?

  • Comprehensive approach

    • Shift towards strategic assurance – “Are we doing the

    right things? Have we identified the right risks?”

    • Board oversight

    • Inputs from:

     Executive and middle management

     External audit

     Internal audit

     Resident scrutiny

     Specialist support

  • Challenges

    • Keeping it strategic

    • Keeping it rigorous

    • Keeping it manageable

    • Keeping it proportional

    • Balancing delegation with

    accountability – Board to

    Exec to middle managers

    • Incorporating into individual

    targets, appraisals

  • Example -

    • Comprehensive risk matrix

    • Interlocking ‘patchwork’ of assurance

    • Input from all levels of the organisation

    • Responsibility:

     Head of Business Assurance

     Reporting to Group Chief Executive

     Reporting to Audit & Assurance Committee

    • Joint procurement with GreenSquare Group of internal

    audit services and specialist reviews

  • Risk matrix overview (extract)

  • Example -

    • Quality Assurance and Service Improvement Programme

    • Three year programme of service reviews

    • Six reviews a year in risk assessed priority areas, e.g. -

     Gas safety

     Income management

     Resident involvement

     Voids and lettings in older peoples’ housing

     Fire safety

     Estate services

    • Staff and residents members of review teams

  • Example –

    • Aim for wider range of assurance than traditional auditing

    • Cut out duplication between external and internal audit;

    external auditor to review internal financial controls

    • Business Assurance Service to provide enhanced strategic

    assurance to Boards and Executive:

     Review business plan and strategies and support Executive

    in identifying and assessing corporate risk

     Independent oversight of management assurance activities

    and oversee procurement of other independent assurance

     Review the assurance framework

    Business Assurance Strategy

  • Example –

  • Example –

  • Getting a handle on best practice

    • HouseMark Business Assurance Club - to be launched in

    June (inaugural meeting in London 19/6/13)

    • To support HM members and key personnel interested in

    ensuring robust business and effective risk management

    • Meetings 3/4 times a year to:

     Share common issues and problem solve

     Hear good practice examples/case studies

     Gain business insight into emerging policy/regulation risks

     Understand changing role and nature of governance in a

    more commercial world

    • Membership at Director/Head of Service level

  • greg.campbell@campbelltickell.com

    www.campbelltickell.com

    020 8830 6777

    0793 048 0244