how should housing providers manage risk? pdfs/presentations... · exec to middle managers •...
TRANSCRIPT
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Greg Campbell 26 April 2013
How should housing providers
manage risk?
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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
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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
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In all sectors….
• Cosmopolitan Housing
• Winterbourne View
• Mid-Staffs NHS Trust
• RBS, HBOS, PPI
• Lakanal House
• Connaught, ROK, Kinetics
• KPMG
• Horsemeat
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“The good old days”
• A simpler environment
• Housing providers (relatively) straightforward
• Big = 15-20,000 homes
• Inspection
• Prescriptive regulation
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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?”
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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
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And what’s more…
• Regulation more hands-off
• Albeit now more complex
• No inspection
• Increasing focus on governance
• Greater onus on Boards
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The big question for Boards and Execs
How do you know
you’re any good?
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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
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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
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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
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Risk matrix overview (extract)
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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
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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
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Example –
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Example –
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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
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