south west hammar regional seminardoc.housing.org.uk.s3.amazonaws.com/presentations/sw hammar... ·...
Post on 30-May-2020
5 Views
Preview:
TRANSCRIPT
PwC
Agenda
Introduction
Objectives
Risk Management
Types of Risks
Risks in Housing
Risk Management Best Practise
Questions
2
PwC
Derrick Tate
Assistant Director, Real Estate Advisory, PwC
Management Consultant specialising in Repairs and Maintenance and Facilities Management with particular expertise in strategy and sourcing of contracts in both the public and private sectors.
• Master’s degree in Facilities Management
• A certified member of the British Institute of Facilities Management (CBIFM)
• A guest lecturer on Physical Asset Management at University College London
3
PwC
Experience
Hyde Group
East Thames Group
Kier Harlow
Grosvenor Estates
Somerset County Council
Taunton Deane Borough Council
Avon and Somerset Police
South Gloucestershire County Council
University of Sussex
Medway Council
4
Forensic Science Service
Humber NHS Foundation Trust
Home Office
WorldPay
Essex County Council
A top ten Law Firm
Government of Abu Dhabi
Microsoft
EDF
PwC
Objectives
Aims and Objectives of today’s presentation
• To provide an overview of the concept of risk management
• To provide a view of the types of risks
• To discuss specific risks in the housing sector
• To demonstrate a methodology for assessing and managing risks
5
PwC
Risk Management
What is risk management
• Risk management is the identification, assessment, and prioritization of risks
• (defined in ISO 31000 as the effect of uncertainty on objectives, whether positive or negative) followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities
(wikipedia)
6
PwC
What is Risk Management
Principles of risk management
• Understand the risks that you face. (what is is?)
• Evaluate as to the potential impact of these risks. (what could happen?)
• Evaluate as the potential likelihood of these risks occurring. (how likely is it)
• Make an assessment of level of risk based on impact and likelihood.
• Prioritisation of risks
• Mitigation actions
• Accept and monitor residual risks
7
PwC
Issues
What is the difference between a risk and an issue?
• A risk is an issue that hasn’t happened yet.
8
PwC
Types of Risks
What do you know?
• We do not know what has not happened yet.
• We do know that some things will in all probability happen at some stage (the known knowns)
• We know that some unknown things might happen (the known unknowns)
• We know that some things might happen that we cannot predict at this time. (unknown unknowns)
9
Nassim Taleb, The Black Swan
“Low-probability, high-impact events that are
almost impossible to forecast—we call them
Black Swan events—are increasingly
dominating the environment. Because of the
internet and globalization, the world has
become a complex system, made up of a
tangled web of relationships and other
interdependent factors. Complexity not only
increases the incidence of Black Swan
events but also makes forecasting even
ordinary events impossible. All we can
predict is that companies that ignore Black
Swan events will go under.”
PwC
Types of Risks
Risk Categorisation
• Can be helpful to think about risks in terms of categories:
- Health & Safety Risks
- Technical Risks
- Financial Risks
- Operational Risks
- Supply Risks
- Commercial Risks
11
- Legal Risks
- Reputational Risks
- Political Risks
- Investment Risks
PwC
Risks in Housing
Health & Safety Risks
• Staff or contractor injury
• Tenant injury
• Visitor / member of the public injury
• Working at height
• Legionella
• Asbestos
• Gas safety
• Electrical Inspections
12
PwC
Risks in Housing
Financial Risks
• Cost overrun
• Unforeseen expenses
• Poor budgetary control
• Loss of revenue
• Macroeconomic risks: Medium term economic growth forecasts are flat to low
• Cuts in funding: 0.9% growth in FY11 and 1.5%FY12- Governments will not have the proceeds of growth to redistribute
• Grant expenditure has reduced by 63% - low grant environment
14
PwC
Risks in Housing
Operational Risks
• IT system Failure
• Staff capacity
• Staff capability/skills
• Availability of resources (vehicles, office space etc)
• Decision Making
• Inaccurate Information
• Poor communications
• Condition of stock
• Availability of stock
• Unplanned repairs and maintenance
16
PwC
Risks in Housing
Operational Processes
• Core service delivery
• General administration
• Recording & data entry
• Management & supervision – frontline
• Processing requests & applications
• Enquiry Handling
• Financial Management
• Appointment taking & booking
• Training
• Billing & receiving payments
17
PwC
Risks in Housing
IT Systems
• Asset Management
• CRM
• Intranet
• Development Management
• Social Media
• Housing Management
• Finance & Procurement
• HR
• Telephony
• Document Management
18
• Reporting
• Website
• Data networks
• Desktops
• Mobile devices
• Contact Centre
• Servers & Data Centre
PwC
Risks in Housing
Supply Risks
• Spare parts and consumables
• Selecting suppliers with the right skills and behaviours
• Supplier Financial health
19
PwC
Risks in Housing
Supply Risks
• Spare parts and consumables
• Selecting suppliers with the right skills and behaviours
• Supplier Financial health
• Relationship with Supplier
• Corruption
21
PwC
Risks in Housing
Commercial Risks
• Pricing level
• Volumes
• Inflation
• Interest rates
• Payment terms
• Lifecycle cost
• Commercial risk ownership
• Partnerships/ Joint Ventures
22
PwC
Risks in Housing
Reputational Risks
• Reputation with tenants
• Reputation with funding bodies
• Reputation with partners
• Reputation with general public
• Reputation with suppliers
24
PwC
Risks in Housing
Political Risks
• National Legislation
• European Legislation
• National Politics: Economics and Housing Policy
25
PwC
Risks in Housing
Political Risks
• National Legislation
• European Legislation
• National Politics: Economics and Housing Policy
• Local Politics
27
PwC
Risks in Housing
Investment Risks
• Capital Values
• Cost of capital
• Lifecycle investment
• Long term asset management
28
PwC
Risk Management Best Practice
Identify and capture risks
• Touch points with tenants/suppliers/others
• Processes
• SWOT analysis (the W & the T)
• Workshop
29
Proportionality
• Key risks with a significant impact that have a reasonable likelihood of occurrence
• Omit everyday occurrences (this is operational management)
• Omit “acts of god” (this is disaster recovery planning)
PwC
Risk Management Best Practice
Risk Management Group
• Set up a regular meeting, perhaps quarterly.
• ToR at commencement to populate risk register
• ToR Ongoing: review risks
30
Risk Register
• Template
• Ownership
• Reporting (Governance)
PwC
Risk Management Best Practice
Risk Register Template
• Word, Excel, PowerPoint
• Tabular
• Drop downs, conditional formatting, formulas
• Balance between being detailed enough to meet your needs and keeping it simple, not overcomplicating it.
31
PwC
Example Risk Register Format 2
33
Risk and
Possible Impact Gross Risk
Early
Warning
Mechanisms
Countermeasures Residual
Risk Contingency
Arrangements Assurance Responsibility
The risk and its
possible
consequences
[1-5]
Likelihood
x Impact =
score
Signs that
the risk
Is increasing in likelihood
Actions to reduce
the likelihood
or impact of risk
Risk
after
counter
measur
e
Actions to
minimise
impact
after risk
occurs
Effectiven
ess
of
counter-
measures
Who is
managing the
risk
Questions?
This publication has been prepared for general guidance on matters of interest only, and does
not constitute professional advice. You should not act upon the information contained in this
publication without obtaining specific professional advice. No representation or warranty
(express or implied) is given as to the accuracy or completeness of the information contained
in this publication, and, to the extent permitted by law, [insert legal name of the PwC firm], its
members, employees and agents do not accept or assume any liability, responsibility or duty of
care for any consequences of you or anyone else acting, or refraining to act, in reliance on the
information contained in this publication or for any decision based on it.
© 2010 PricewaterhouseCoopers LLP. All rights reserved. In this document, “PwC” refers to
PricewaterhouseCoopers LLP which is a member firm of PricewaterhouseCoopers
International Limited, each member firm of which is a separate legal entity.
top related