Risk management
The management of risk is acknowledged as being fundamentally important to the Group. 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 Group Board of Management and the Group Finance, Risk and Audit Committee. The Executive
Board formally reviews risk at each meeting. This supports effective and strategic decision-making and ensures the Group is able to
adapt to changing circumstances. The Group’s 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 the Group’s residents and assets. The
Group’s approach to risk management includes the following:
n A formal framework setting out how the Group identifies and manages opportunities and risk, which sets out clear responsibilities
of staff, management team and the Board
n Regular review of the key risks facing the Group by the Executive and Board
n Regular review of risk appetite by the Board
n Risk scenario planning
n Risk registers which set out the risks of failing to meet business objectives, together with controls and actions needed to manage risks
n Internal audit using a risk based approach for the audit programme
n “Project Approval Panel” to assess the business case for major new projects and initiatives
n Appraisal and regular staff reviews which are aligned to managing risk
n Stress testing and sensitivity analysis of the key areas of risk built into our financial forecasts
n Activity limits set where required
n Formal project management procedures in place in relation to the development of new homes
n Business continuity plans and disaster recovery plans
n Regular assessment of the local housing and healthcare economy/marketplace
The Group-wide Risk Management Strategy is owned by the Board and is subject to periodic review and update. The emphasis remains
on ensuring risks and opportunities are continuously monitored, understood and evaluated. This supports effective and strategic
decision-making and ensures the Group is able to adapt to changing circumstances. As part of the Group’s risk management framework,
the Group operates a comprehensive risk management process which incorporates all subsidiaries and major group functions. Risk
management informs our business planning cycle and in the current economic climate proactive risk management remains an important
management tool.
Financial Statements 2016
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