Recently, I came across a thought-provoking article by David Levenson on the pressing issues keeping board members of housing providers awake at night. As a risk consultant and non-executive director myself, working closely with boards in the housing sector, I found his reflections both timely and highly relevant. Given the challenges we face today—political, economic, and social—I wanted to share my perspective on these issues and offer some practical insights for boards navigating this complex landscape.
Read the original article here, as David highlights eight key issues, each of which resonates with my own experience.
Here are my thoughts:
1. Heightened Scrutiny and Reputational Risk
David rightly notes that housing providers are now under intense scrutiny from the media, regulators, and residents. The risk of reputational damage is significant, particularly as isolated incidents often result in sector-wide criticism.
From my perspective, boards must focus on building a strong risk management framework that not only identifies potential issues early but also ensures a swift, transparent response when things go wrong. Maintaining stakeholder trust is crucial, and that comes from clear communication and a proactive approach to governance.
2. Regulatory Pressure and Compliance Costs
The introduction of new consumer standards has undoubtedly increased the regulatory burden. David points out that this can stifle innovation, but I believe it doesn’t have to.
Boards should see regulation as a baseline, not a ceiling. Meeting these standards is essential, but they can also be an opportunity to drive better outcomes for residents. By embedding a resident-centric approach and involving tenants in service design, boards can go beyond compliance to foster real engagement and improvement.
“Boards should see regulation as a baseline, not a ceiling. Meeting these standards is essential, but they can also be an opportunity to drive better outcomes for residents.”
3. Balancing Resident-Centricity and Innovation
As David mentions, greater scrutiny can lead to a more cautious approach, potentially limiting innovation. However, risk appetite frameworks can help boards strike the right balance.
This is a common standalone activity in my work as a risk consultant, and having an external provider support this process brings significant benefits—including wider sector experience, diverse viewpoints, and an independent perspective.
Wider Sector Experience – External consultants often bring insights from similar exercises conducted across different organisations, which can help boards benchmark their approach against sector best practices.
Diverse Viewpoints – By incorporating lessons learned from different governance environments, an external provider can challenge internal assumptions and broaden strategic thinking.
Independence – Having an independent facilitator can foster open discussions, minimise groupthink, and ensure that the framework reflects genuine board consensus.
Practical Implementation Support – Beyond agreeing on the framework, external providers can guide leadership teams on how to embed the framework into day-to-day decision-making and reporting.
This can be a challenging exercise but is invaluable in setting the tone for decision-making and ensuring alignment across the organisation. Once the board has agreed on its risk appetite, the next step is operationalising it—embedding it into leadership teams’ decision-making processes so that it becomes a practical tool rather than something that sits on a dusty shelf.
I often work with boards to define their risk appetite clearly, enabling them to take calculated risks in areas like new technologies or service delivery. This ensures they remain resident-centric while still pursuing innovative solutions.
“Once the board has agreed on its risk appetite, the next step is operationalising it—embedding it into leadership teams’ decision-making processes so that it becomes a practical tool rather than something that sits on a dusty shelf.”
4. Resident Safety as a Strategic Priority
Post-Grenfell, resident safety is now firmly at the top of every board’s agenda. David’s emphasis on this point is spot on. The introduction of new safety regulations, such as the Fire Safety Act and Building Safety Act, requires boards to stay constantly informed and assured.
In my work, I stress the importance of having access to independent safety expertise and ensuring that safety governance is robust. Boards need regular assurance on safety matters, and this should be a standing item on every agenda.
5. Financial Viability and Treasury Risks
David’s discussion of financial pressures, particularly around loan covenants and operational deficits, is a reality many boards are facing.
Boards must maintain a keen understanding of their financial position, including the nuances of treasury management. Scenario planning and stress testing are critical tools to help boards anticipate financial risks and develop effective mitigation strategies.
6. Declining Development and New Funding Models
The decline in large-scale social housing development is a bitter pill for many boards, as David notes. However, I see this as an opportunity for boards to explore alternative funding models and partnerships.
Whether through joint ventures, local authority collaborations, or innovative off-balance sheet solutions, there are still ways to deliver on development goals. Boards need to be open to new approaches and ready to adapt their strategies accordingly.
7. Preparing for the Next Crisis
David poses a crucial question: “What’s the next big disaster coming down the line?” While we can’t predict every crisis, boards can build resilience by fostering a culture of preparedness.
This involves regularly reviewing risk registers, conducting scenario-based exercises, and ensuring that lessons learned from past crises are embedded into future planning. Boards that actively engage in these activities will be better positioned to weather whatever comes next.
8. Social Value as a Strategic Opportunity
I agree wholeheartedly with David’s point about the rise of housing as a social business. The pandemic highlighted the vital role housing providers play in their communities, and this has opened up new opportunities for boards to deliver social value.
However, it’s important to note that expanding into areas like health, education, and employment shouldn’t step away from the core purpose of providing social housing. Instead, these initiatives should enhance the board’s role in creating sustainable communities that ultimately strengthen their housing mission. By aligning these efforts with their mission and values, boards can create lasting positive impacts for residents and the wider community.
Final Reflections
David’s article underscores the growing complexity of board roles in the housing sector. From managing reputational risk to navigating financial pressures and regulatory demands, boards face a challenging landscape. However, with the right frameworks, proactive governance, and a clear sense of purpose, they can not only manage risks but also seize opportunities to deliver on their mission.
As a risk consultant and board member, I support boards in strengthening their governance, enhancing resilience, and driving meaningful outcomes. If you’re interested in discussing how your board can navigate these challenges effectively, feel free to get in touch. I’d be delighted to help.
About the Author
Becky Tucker is a risk and assurance specialist, board member, and founder of House of Risk. With over 20 years of experience in the housing sector, she works with boards and senior leaders to embed effective risk management frameworks, align strategy with resilience, and foster innovation in governance.
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