41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 81
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
OTHER INFORMATION
PRINCIPAL RISKS AND UNCERTAINTIES
Our risk appetite
The Group’s risk appetite is considered a fundamental part of
the Board’s strategy setting and annual budget – it does not
happen in isolation. Our risk appetite is underpinned by our
objective of being a responsible and resilient business whilst
delivering for our customers, our people and universities
with attractive returns for our shareholders.
During the year, the Board continued to regularly review
and assess our risk appetite with a primary focus on the
resilience of the business and its agility. This considered both
threats to – and opportunities in – our business as well as
wider macro risk developments impacting the PBSA sector
and the broader Higher Education sector, property market
and economy.
Our overall risk appetite in the year was broadly unchanged
from the previous financial year. Whilst the impact of the
pandemic is now known and reducing, other macroeconomic
factors are extant and the Board continues to take a prudent
approach to risk and opportunity.
Stress testing/scenario planning
and our Strategic Plan
Each year, the Board develops and refreshes the Group’s
Strategic Plan. This is based on detailed three-year strategic/
financial projections (with related scenario planning) and
rolls forward for a further two years using more generic
assumptions. The Board maps our strategic objectives
against our risk profile. Then, always conscious that risk
events do not necessarily happen in isolation, the Board
stress tests these projections against multiple combined risk
events. Through this process, a base case and stress-tested
Strategic Plan are developed.
During 2022, this scenario planning continued to closely
monitor external factors and the Board developed
a wide range of scenarios and stress tests to assess
our preparedness and ability to withstand adverse
market conditions.
Creating the right corporate culture
for effective risk management
The Group’s risk management framework is designed to
identify the principal and emerging risks, ensure that risks
are being appropriately monitored, controls are in place
and required actions have clear ownership with requisite
accountability.
The organisation has an open and accountable culture,
led by an experienced leadership team.
The culture of the organisation recognises – and accepts –
that risk is inherent in business and encourages an open and
proactive approach to risk management. By viewing our risks
through the lens of our strategic objectives, the Group is able
to ensure risk management is proactive and pre-emptive and
not a tick box exercise.
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