Risk Area:

Asset Management

Causes
Key Concerns
Cost and complexity of achieving EPC "C" and net zero carbon
Increased compliance costs arising from changes to statutory / regulatory standards, including the Building Safety Act and the Decent Homes Standard
Poor, deteriorating or unknown stock condition
Secondary Concerns
Availability and cost of materials and skilled labour
Cost and complexity of fire safety remediation works, including mid- and low-rise buildings
Ineffective strategic approach to asset management
Sub-optimal distribution or concentration of the housing stock
Retention of poorly performing assets (including those for which there is low demand)
Inefficient procurement of the asset management programme
Insufficient resources to deliver the planned asset management programme
Reinforced Autoclaved Aerated Concrete (RAAC)
Structural failure
Decline in the quality of the portfolio
Asset management works result in buildings that are unsafe or that fail to comply with statutory or regulatory requirements
Withdrawal of stock transfer / equity investment counterparty after significant costs have been incurred
Other Concerns
Inappropriate asset management standards
Inefficient procurement of responsive and cyclical maintenance programmes
Poor performance of maintenance / asset management contractors
Existing buildings are not suitable for disabled people
Lack of comprehensive and comparable data on the quality of the stock
The organisation's homes suffer from poor air quality
Failure to deliver the asset management strategy on time and on budget
Risk Assessment History
Date Prob Score Imp Score Total Score Basis
06/04/2021 3 4 7 Increasing pressure on asset management budgets due to the costs of fire safety remediation and decarbonisation. Forthcoming introduction of the future homes standard.
30/09/2019 2 4 6 Uncertainty over meeting cost of Hackitt Review and additional safety issues associated with timber frame construction etc.
01/07/2019 3 3 6 Additional spending post Grenfell now incorporated into financial plans
29/12/2018 4 3 7 Additional spending post Grenfell now incorporated into financial plans
07/07/2017 3 4 7 Reaction to effects of Grenfell Tower
13/05/2014 2 4 6 Regulatory requirement to report on the return on assets and a drive towards more active asset management in the sector
03/12/2010 2 3 5 Reduced regulatory focus on service quality
11/11/2009 2 3 5 None