We’re often asked about how to avoid failures in governance. Some of the reasons are “basic” failings in delivering the “basics”, but some reasons are more complex with even the most experienced of housing providers falling foul of the regulator. We’ve put together these tips for anyone wanting to understand how to avoid failing at governance.
- Ensure Compliance: Might be obvious but regularly review and understand the regulatory requirements applicable to social housing. Develop processes and systems to ensure compliance with these regulations.
- Address Concerns Proactively: Be proactive in identifying and addressing issues that might be of concern to the Regulator. Establish a system for promptly identifying and resolving any potential compliance issues.
- Analyse Weaknesses: Conduct careful and bespoke analysis of your organisation to identify weaknesses in governance. Address these weaknesses with robust solutions tailored to your organisation's specific circumstances.
- Watch for Indicators of Systemic Problems: Pay attention to specific issues that may indicate wider systemic problems within your organisation. Examples include failures in processes, controls, risk understanding, stress testing and resilience planning.
- Focus on Core Purpose and Values: Ensure a strong focus on your organisation's core purpose and values. When embarking on new initiatives, evaluate them against your organisation's constitution and core principles.
- Establish the Right Structure: Develop a well-defined organisational structure with a clearly agreed purpose. Implement effective risk management and mitigation strategies to address potential risks.
- Robust Assurance and Internal Audit: Establish mechanisms for robust assurance and conduct a critical and comprehensive review of internal audit reports. Use the findings to improve governance and address any identified weaknesses.
- Uphold High Standards of Conduct: Set and maintain the highest standards of conduct and probity for executives and non-executives within your organisation. Emphasise the importance of good standards in a regulated sector.
- Continuous Improvement: Foster a culture of continuous improvement in governance practices. Regularly assess and update your governance framework to adapt to changing regulatory requirements and emerging risks.
- Seek Expert Guidance: Consider seeking external expertise or consulting with governance professionals to gain insights and guidance on best practices in social housing governance.
Remember, these tips serve as a starting point and each organisation should delve into the specific details based on its own circumstances to ensure effective governance and retain a favourable regulatory rating. If you want to discuss in more detail, then please get in touch.
