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 formally 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, management team and the Board
n Regular review of the key risks 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 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 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. Key risks facing the Association include:
Risk: Loss of income from care contract funding plus increased exposure to cost control pressures (incl. Living wage)
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. Successful management interventions for under-performing services. C&S
performance management system established with monitoring meetings and clear escalation. Budget monitoring processes.
1-5
46
6-10
11-16
Residual risk score 2017 16
Residual risk score 2016 12
Accord Housing Association
16+