Page 14 - BusinessPlan2016
P. 14
Current and Proposed Activities
Financial Profile
Risk management
Corporate Improvement Objectives and monitoring
Summary of Key Targets

8 Risk Management

The Board of Management is mindful of the It is a critical feature of the Association’s day to internal auditors. The Risks are considered
need to undertake a review of those issues that day operations and is core to the Board’s overall quarterly by the SMT and referred to the Audit
could detrimentally affect the Association’s management of the company. Sub Committee for review and approval by the
financial viability and administrative operations. Board of Management. In making an assessment
Recognising and managing risk is now an The Association’s risk management system has of the Risks the Board has agreed the following
embedded central consideration in the been developed by the Senior Management issues in its Corporate Risk Register and this
Association’s approach to good governance. Team and Board in consultation with our table reflects the current risks identified.

Risk Impact Likelihood

Lack of liquidity leaves Association unable to repay its creditors. Catastrophic Rare
Negative outcome from DFC inspection results in Association having to merge, adopt group structure or face public inquiry. Major Rare
Significant misappropriation of funds / assets by management, staff or Board members results in considerable financial loss Minor Rare
and / or serious reputational damage.
Failure to meet the Associations 3-year Strategic Development Programme and Failure in management of development Minor Rare
process results in undeveloped land asset which detrimentally impacts upon the Association’s working capital.
Failure to have a robust and transparent procurement process in place resulting in challenges from unsuccessful contractors Minor Unlikely
and wider public criticism.
Significant disruptive event impacts upon the Association’s ability to maintain key services in line with its business needs. Major Unlikely
Serious damage or loss of housing stock results in tenant fatality, injury or homelessness. Catastrophic Unlikely
Information security breach leads to inappropriate disclosure of personal client data. Moderate Unlikely
Failure to comply with statutory / legislative requirements results in risk of legal challenge, penalties and / or potential Moderate Unlikely
reputational damage.
Failure to ensure safety of personnel results in serious personal injury to staff member. Major Rare
Failure to effectively respond to changes in Government policy impacts upon the future viability of the Association. Catastrophic Unlikely
Failure to maintain core staff or deal effectively with Employment issues Major Unlikely
Failure to comply with new International Financial Reporting Standards (IFRS) Minor Almost Certain
Rental Income is reduced as a direct result of Welfare Reform measures Minor Almost Certain

13 : Business plan 2016/17 : rural housing association
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