Financial Statements 2018 financial statement- joomag | Page 31

Financial markets: interest rates, inflation and deflation Performance of the financial markets can impact on business performance – both rent increases and debt management costs can be directly influenced by economic market movements. Contraction of the public sector Public spending and associated public services continue to face funding pressure. In light of this it is increasingly important that the social housing and care sectors position themselves appropriately in the context of these pressures. Human Resources: staff recruitment and retention The ability to recruit and retain skilled carers is an ongoing pressure for all providers in the care and support business. This can impact on both the cost and consistency of service delivery and is therefore a risk which is closely monitored on an ongoing basis. Accord’s risk appetite is reviewed periodically as is currently defined by the Board as “Accepting reasonable risks which we are able to manage, control and understand the certainty of materialisation. The delivery of the strategic business plan in the context of this risk appetite is delegated to management under the usual controls and authorities. Activities with a risk profiled deemed to be outside of this scope should be referred back to the Board”. During 2017/18 Accord commissioned an external review of its risk management arrangements. The review included interviews with Officers and Board Members, a review of the governance arrangements surrounding risk management and a review of key documentation. The outcome of the review provided significant positive assurances to the Board and Finance, Risk and Audit Committee on Accord’s risk management arrangements. 30 Accord Housing Association