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 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, the 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/market.
The Risk Management Strategy is owned by the Board and i s 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.
Below is Accord’s residual risk heat map which was extracted from the June 2018 Corporate Risk Register. The heat map shows
the residual (net) risk after controls and mitigations have been applied. The risk heat map highlights management’s assessment
of the risks Accord is exposed to.
5
2 risk
4
Impact
3
2 risk 2 risk 1 risk
6 risk 1 risk 1 risk
1 risk
1 risk
1 risk
2
1
1
2
3
Likelihood
28
Accord Housing Association
4
5