In the ever-evolving landscape of the social housing sector, housing associations are continually adapting to a range of strategic risks. Inside Housing has recently published a list of the top 10 most common strategic risks currently faced by housing associations.
This article delves into each of these risks, offering insights and strategies to manage these risks effectively.
1. Cybersecurity/IT Management: In the digital age, cybersecurity is paramount. Housing associations must strengthen their IT infrastructure to protect sensitive data from cyber threats. Regular security audits, employee training, and investing in robust cybersecurity measures are essential.
2. Health and Safety: Ensuring the health and safety of tenants and staff is a legal and moral obligation. Regular property and estate inspections, compliance with safety regulations, and prompt response to safety concerns are crucial to mitigate this risk.
3. External Economic Conditions: Economic fluctuations can significantly impact funding, costs, and the affordability of housing. Associations should adopt flexible financial strategies and maintain reserves to cushion against economic shocks.
4. Development: Development risks include project delays, cost overruns, and market changes. Effective project management, thorough market analysis, and contingency planning are key to managing these risks.
5. Recruitment and Retention of Staff: A skilled and stable workforce is vital. Offering competitive salaries, career development opportunities, and a positive work environment, that considers staff well-being, can help in attracting and retaining talent.
6. Financial (Viability/Management/Resilience): Financial health is critical for sustainability. Regular financial audits, diversifying income streams, and effective budget management are imperative for financial resilience.
7. Asset Management: Proper management of housing stock ensures longevity and tenant satisfaction. Regular maintenance, investing in upgrades, and compliance with housing standards are necessary for effective asset management.
8. Customer Service/Satisfaction/Expectation/Experience: Tenant satisfaction is central to a housing association’s success. Regular tenant engagement, prompt response to complaints, and tenant-centric services enhance overall customer experience.
9. Quality, Integrity, Protection, and Governance of Data: Data management is crucial for operational efficiency and compliance. Implementing data governance policies, regular data audits, and ensuring data integrity are essential steps.
10. Legal and Regulatory Compliance: Adhering to legal and regulatory requirements is a non-negotiable. Staying updated with legislative changes and ensuring compliance through regular training and audits can mitigate legal risks.
Navigating these strategic risks requires a proactive approach, comprehensive planning, and constant vigilance. Housing associations must remain adaptable, resilient, and tenant-focused to thrive in this dynamic environment. By addressing these challenges head-on, they can continue to fulfil their vital role in providing quality social housing.
Ensuring the health and safety of tenants and staff is a legal and moral obligation. Regular property and estate inspections, compliance with safety regulations, and prompt response to safety concerns are crucial to mitigate this risk.