Risk management plans vital for housing association boards, says Housing Corporation Chairman

Housing Corporation news release

Monday 16 June 2008   Ref: 41/08

Risk management plans vital for housing association boards, says Housing Corporation Chairman
 
Housing Corporation Chairman Peter Dixon has sent a letter to all housing association chairs urging them to have extensive risk management plans in place to deal with the current conditions within the credit and housing markets.

Peter Dixon’s letter to housing association chairs:

13 June 2008

To: All Chairs of Housing Associations

Dear Colleague
 
I have been impressed by the way in which the sector has so far weathered the very difficult economic conditions we are all facing. This is not the first time that housing associations have had to deal with a declining market and it will not be the last.
 
My purpose in writing now is to re-emphasise my overriding concern for good governance and board vigilance. When market conditions are changing on a weekly basis and the difficulties in which some developers are finding themselves are presenting opportunities it is essential that proper risk management is in place and that boards are fully up to speed with what is going on.
 
There is every chance for well managed and well resourced organisations to benefit when times are hard. You and your boards need to be certain that accurate, up to date information is available to you and that the assumptions you make in your business planning remain consistent with the very harsh conditions in the credit and housing markets today.
 
I am sure that you and your executive teams will rise to the challenge.

Yours sincerely

Peter Dixon
Housing Corporation Chairman