Risk Assurance Framework
Approach to risk and assurance
Our purpose at settle is to help people who are struggling to find a place to live. We help our customers to stay in their homes comfortably, so that they can live the life they choose. We have values and behaviours which shape us and guide us in achieving our purpose. Whilst our purpose and values haven’t changed, our ambition continues to grow and it is therefore crucial that we have an effective risk management framework in place that provides a structured and coherent approach to identifying, assessing and managing risk.
The economy and external operating environment continue to present challenges and risk and the Board and Executive team regularly review the approach and processes in place to identify, mitigate and manage risk to the achievement of settle's purpose and objectives.
Our approach to risk management
Our approach to risk is governed by our risk appetite statement and risk assurance framework.
- Risk appetite is best defined as the level of risk that we are prepared to accept in pursuit of our strategic objectives and before action is deemed necessary to reduce the risk. The Board reviews the risk appetite statement at least annually.
- Risk Assurance Framework – our framework helps us manage both strategic, operational and emerging risks across the business. This framework is designed to create a cascade of risk, creating a more live framework and more regular conversations about risk management throughout the business. To assist with this there are a series of rules to apply when considering where a risk sits.
Risk Management
A risk is registered on the strategic framework if its occurrence would cause one or more of the strategic themes to miss the agreed target. Risks will be logged on the assurance framework in the following circumstances:
- A single operational risk may move to the strategic framework if the impact would result in a strategic theme going off-course.
- A series of connected operational risks may, together, form a strategic level risk due to their combined effect on the achievement of a strategic theme.
Each risk within the Strategic Risk Register is regularly analysed and prioritised. The register identifies the existing controls and mitigations and further controls in development for each risk. Our assurance is based on the three lines of defence model. All risk and risk movements are reported quarterly to the Audit and Risk Committee for assessment and monitored.
As at 31 March 2023, the key risks on settle’s risk assurance framework, together with the principal controls we have in place to mitigate these risks are shown in the table below:
Strategic Risks
Group Risk Heat Map 31 March 2023
The Group risk heat map summarised here shows the residual risk rating as at 31 March 2023 after mitigating actions have been taken. All risks are kept under regular review by settle’s Executive Team, the Audit and Risk Committee and the Board.
Risk Management of Rowan Homes (NHH) Ltd (RHL)
The same approach to risk management is in place for our subsidiary RHL. As at 31 March 2023, the key risks on RHL’s risk assurance framework, together with the principal controls we have in place to mitigate these risks are shown in the table below.
