Financial Statements 2016 | Page 64

Key risks facing the Group include: Risk: Loss of income from care contract renewal/ funding plus increased exposure to cost control pressure Key controls and risk reduction include: Care and Support Strategy to protect income streams. Growth plans. Local Authority relationship engagement. Quality management systems for excellent services. Close financial performance monitoring. New Business targets/identify new income streams. 1-5 6-10 11-16 Residual risk score 2016 12 Residual risk score 2015 16 16+ Risk: Failure of realise the benefits/impact/growth of the Care and Support Strategy Key controls and risk reduction include: Board approved strategy in place to support implementation. New Business targets/identify new income streams included in approved budget. Project plans in place to support post-implementation. Locality-by-locality approach to reduce risk. Executive Board level accountability. 1-5 6-10 11-16 Residual risk score 2016 15 Residual risk score 2015 15 16+ Risk: Financial performance is adversely affected by rent reductions Key controls and risk reduction include: Ongoing financial modelling. Review of key priorities. Immediate and ongoing Executive and Board engagement. Income generation/cost reduction strategies. Cost removed from business. Prudent budgets cater for known pressures. Board approved response plan. 1-5 6-10 Residual risk score 2016 11-16 16+ 15 Residual risk score 2015 N/A - new in 2016 Risk: CQC/OFSTED/Regulated Services ratings impact on reputation and ability to win new business Key controls and risk reduction include: Close working relations with Regulatory body. Transparent approach to reporting. Action plans to maintain standards. Quality management systems. 1-5 6-10 11-16 Residual risk score 2016 15 Residual risk score 2015 12 16+ Risk: Housing services - Bedroom tax, benefit cap & Local Housing Allowance - arrears increase as a result of pressure on income collection Key controls and risk reduction include: Arrears KPI monitoring to Board. New group wide housing management policies/procedures in place. Authorisation for evictions/write offs. Resources redirected accordingly. Budgetary controls. Increased management scrutiny. Welfare reform and digital inclusion action groups. Local Authority and DWP engagement. 1-5 6-10 Residual risk score 2016 Residual risk score 2015 62 Accord Group 11-16 12 8 16+