26 | Accord Housing Association
On behalf of the Board , the Finance , Risk and Audit Committee has reviewed the effectiveness of the system of internal control in existence in the association for the financial year and the period to the date of approval of the financial statements . The Finance , Risk and Audit Committee received the annual report on internal control assurance and has conducted its review of effectiveness of the risk management and control process . A number of internal audit reviews have been undertaken in accordance with the approved internal audit plan approved by the Finance , Risk and Audit Committee on behalf of the Board . No weaknesses were found in internal controls which resulted in material losses , contingencies , or uncertainties , which require disclosure in the financial statements or in the external auditors ’ report on the financial statements .
Risk Management
The management of risk is acknowledged as being fundamentally important to Accord . Risks are continually assessed to measure their significance . The Board has responsibility for risk management and reviews risk appetite regularly . Risk management updates and the risk register itself are subject to review by the Board of Management and the Finance , Risk and Audit Committee . The Executive Board reviews risk at each meeting . This supports effective and strategic decision-making and ensures Accord is able to adapt to changing circumstances . Emphasis remains on ensuring risks and opportunities are continuously monitored and evaluated . Policies and procedures are adapted to ensure appropriate action is taken to safeguard residents and assets . Accord ’ s approach to risk management includes the following :
n A formal framework setting out how Accord identifies and manages opportunities and risk , which sets out clear responsibilities of staff , the management team and the Board ;
n Regular review of the key risks and risk appetite by the Executive and Board ;
n Risk scenario planning , including specific risk identification workshops by the Executive ;
n Risk registers which set out the risks of failing to meet business objectives , together with controls and actions needed to manage risks ;
n Stress testing and sensitivity analysis of the key areas of risk built into financial forecasts ;
n Business continuity plans and disaster recovery plans .
The Risk Management Strategy is owned by the Board and is subject to periodic review and update . This supports effective and strategic decision-making and ensures Accord is able to adapt to changing circumstances . As part of the risk management framework , Accord operates a comprehensive risk management process which incorporates all disciplines and major functions . Risk management informs the business planning cycle and in the current economic climate proactive risk management remains an important management tool .