Emerging Global Risks Richard Wood: Head of Housing Chris Greaves: Senior Strategic Risk Consultant

Agenda

An open discussion to: • Explore the relationship between global emerging risks and

the housing sector

• Debate your perception of these risks and their effects on your organisation

• Discuss preventative controls

Quiz

What is the circumference of the earth?

24,901.55 miles

Approx. 70%

7,206,529.287

How much of the worlds surface is water?

What was the worlds population on 15 January 2014 at 16:00hrs

Emerging Global Risks

And locally….

Hosepipe ban to be imposed in

drought-hit parts of UK BBC News April 2012

And then December happened!! BBC News Website Dec 2013

Global Risk Report World Economic Forum

• Over 1,000 experts consulted

• Top fifty risks

• Ninth year

• Considers direction of travel

• Considers interconnectivity

• www.weforum.org

80% of the top risks will impact on you over time….

Fiscal crisis in key

economies

Unemployment /

underemployment

Water Crises

Failure of climate

change mitigation

Greater incidence

of extreme weather

events

But: risk is not just about the risks within the four walls of your Association!

Question

How do you see these global risks effecting

you?

What our customers tell us…

Local

Government Housing Health Third Sector

Higher

Education

Finance

viability

Welfare

reform

Public Health

Delivery

models (diversification)

Environment

al

Welfare

reform

Mergers &

Acquisitions

Financial

Partnership /

supply chain

Diversificatio

n

Financial Funding Funding

Governance

Contract

commissioni

ng Research

I.T

infrastructure Reputation Student No’s

Information Information Reputation

Change

implement Skills Facilities

Are we recording the right risks? The real purpose of Risk Registers

Monitoring and Review

• Ensuring that the risk control and treatment measures are effective in both design and operation

• Detecting changes in the external and internal context including changes to the risk itself which may require revision of risk treatments and priorities

• Analysing and learning lessons from events, changes and trends

The Resilient Organisation

• The ability to prevent significant negative consequences occurring

• The ability to prevent negative consequences worsening over time

• The ability to recover from the negative consequences of an event

• Seeking out the opportunities that arise during a crisis to emerge

stronger than before

• Ability to achieve objectives even in the face of adversity

Total Cost of Risk (TCoR)

Strategic Risk Registers

Gross Risk Residual Risk Target Risk

Total Cost of Risk

Gross Risk Cost

£xxx

Residual Cost £xxx

Cost of Improvement

£xxx

Expected Target Cost

£xxx

Costs & Drivers

Accountancy, Budgetary Control and Performance Management

Strategic Risk

Strategic objectives / aims

TCoR The Benefits…

’Majority of respondents

considered lowering the cost

of risk as one of the top

benefits of investing in risk

management. However, no

more than 30% said they

tracked or managed all

components of

their TCoR’

…and finally

Consider World Economic Forum report in your own risk view Take time out to understand how these risks manifest themselves on the housing sector Gain assurance that your mitigation actions are effective

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2

3

Q&A

Thank You