41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 80
THE UNITE GROUP PLC | Annual Report and Financial Statements 2022
RISK MANAGEMENT continued
Top-down
Strategic risk management
Bottom-up
Operational risk management
Board/Audit & Risk, Sustainability and Health & Safety Committees
Review external environment
Assess effectiveness of risk
management process and internal
control systems
Robust assessment of principal risks
Set risk appetite and parameters
Report on principal risks and
uncertainties
Determine strategic action points
Executive Committee/Customer Leadership Team/Property Leadership Team
Consider completeness of
identified risks and adequacy of
mitigating actions
Identify principal risks
Direct delivery of strategic actions
in line with risk appetite
Consider aggregation of risk
exposures across the business
Monitor key risk indicators
Business units
Execute strategic actions
Report current and emerging risks
Report on key risk indicators
Identify, evaluate and mitigate
operational risks recorded in
risk register
Monitor KPIs & risk controls and take appropriate action
OUR INTEGRATED RISK MANAGEMENT APPROACH
Internal Audit provides assurance on effectiveness of risk
management process and testing of key controls
78
OUTPUT – SEVEN RISK CATEGORIES
Market
Operational
Property/
development
Technology
People
Sustainability/
ESG
Financial
Manage our
supply and
demand risk
Minimise the risk
of an incident
Deliver a suitable
development
pipeline
Maintain a secure
IT environment
Retain a high
performing
workforce
Meet our
regulatory and
publicly made
commitments
Manage our
balance sheet
liquidity
Read more on
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Read more on
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page 84
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The Board conducts a twice-yearly dedicated risk review.
As part of this focused risk review, the Board undertakes its
assessment of the principal risks facing the Group, taking
account of those that would threaten our business model,
future performance, solvency or liquidity as well as the
Group’s strategic objectives. The Board considers both
internal and external factors when assessing our risks.
Through 2020 and 2021 Covid-19 was a key consideration for
us; in 2022 and looking ahead to 2023, whilst Covid-19 is still
a consideration, there are a number of other macroeconomic
and political factors. In summary, we have considered the
following when assessing our principal risks.
•
A world emerging from a global pandemic with a series of
lockdowns impacting on trade, travel and people’s lives.
•
A disrupted UK labour market with low unemployment
and high vacancies leading to recruitment challenges and
pay increases.
•
The war being waged by Russia against Ukraine that has
led to unprecedented sanctions on Russia; consequential
global shortages of goods, notably oil and gas; and price
increases for all forms of fuel together with a shortage of
goods usually exported from Ukraine.
•
•
•
Increased levels of inflation.
Recent increases in interest rates.
Political change with two changes in UK Prime Minister
during 2022.
These external factors impact our risk profile to varying
degrees and we are already seeing an impact in certain areas
(such as build cost inflation and recruitment), whilst others
are still emerging. Our year-end assessment of risk has
included how these external factors have impacted and the
action we are taking to mitigate them.
