Arawak Walton Housing Association – Risk Appetite Statement

Arawak Walton Housing Association support thousands of people in more than 1,000 homes across Manchester, Stockport and Trafford. They are the largest independent black and minority ethnic (BME) Housing Association in the North-West.

Objective

The association wanted to review and update its risk appetite statement in light of many changes in the sector and the dynamic operating environment at this time.

What we did

DTP developed and facilitated two sessions with the board. The first of these was to refresh understanding of the subject matter. This session included:

• Discussion on risk appetite statement – exploring what this is and why we have one (regulatory context)
• Current position (Arawak Walton’s current Statement) was reviewed
• Discussion on how the board would like to develop this – with some examples considered

The second session confirmed the approach that was to be adopted and included a wide-ranging discussion about the risks that Arawak Walton considered to be key strategic risks. The discussion explored the relative appetite for the various risks, adopting a template, which considered risks against various heads as follows: averse, cautious, balanced, open and hungry. Broad consensus was achieved on all risks considered and DTP was tasked with producing the emerging view and blending these with the known characteristics of Arawak Walton as a business and the risks that were outlined in the strategic risk register.

What we achieved

A risk appetite statement was developed for consideration by the board and this was approved, following a discussion and some minor amendments.