The importance of embedding a culture of shared responsibility

Embedding a culture of shared responsibility

 

Risk management is not just a board-level concern – it happens everywhere, from senior leadership to colleagues working out in the community. Building a strong culture of shared responsibility can enable everyone to be a risk manager so issues can be addressed as they arise.

 

Creating an environment where colleagues feel confident to speak up helps foster this culture. Deep-rooted organisational principles such as ‘never walking by’ and ‘always doing the right thing’ can empower colleagues to take ownership and breed the confidence to act or raise a concern.

 

When a colleague feels listened to, is empowered to choose curiosity over efficiency, and is comfortable showing empathy, an organisation benefits from an attentive network of individuals who can identify the overlooked gaps, be the eyes and ears in communities and help deliver the right outcomes for customers.

 

Ensuring intelligence flows seamlessly

 

Effective risk management depends on the continuous flow of intelligence across all levels of an organisation, with potential insights coming from structured processes like risk workshops or more informal observations by employees and customers.

 

Centralised systems for capturing and analysing this information are critical. For instance, an increase in customer complaints about maintenance delays could initially appear as an isolated issue.

 

However, when combined with data on contractor availability and workload trends, it may signal a broader problem requiring a strategic response. A good flow of risk intelligence and the ability to connect the dots allows housing providers to act on a comprehensive understanding of risks.

 

Customer feedback is an especially valuable source of intelligence. By systematically analysing complaints and observations, organisations can identify recurring issues and uncover their root causes.

 

Strong communication channels ensure that this information reaches decision-makers quickly and reliably.

Balancing operational and strategic risks

 

Determining when to elevate operational risks to strategic priorities is a core challenge in risk management.

 

A cross-functional risk review forum that regularly considers an organisation’s risk landscape in a holistic way prevents risks from being understood in isolation and allows for a clear picture of aggregated risk to emerge.

 

Some operational risks – like compliance with lease obligations or legal ownership issues – may seem minor but can create significant liabilities if ignored.

 

For example, neglecting maintenance of communal areas, such as broken lighting or unsafe flooring, breaching lease obligations and risking legal or regulatory action.

 

Having a trusted set of key risk indicators that help you monitor when to elevate an operational risk to a strategic one is also key.

 

For example, an increase in damp and mould cases being treated in customers’ homes will require a co-ordinated response across multiple teams including repairs, scheduling, surveying, customer service, complaint-handling, health and safety, and housing management.

 

Knowing when to elevate an operational risk to a strategic level allows organisations to proactively tackle the root causes in a joined-up way.

 

Uncovering the unknown unknowns

 

A significant challenge in risk management is addressing ‘unknown unknowns’. Housing providers often focus on immediate regulatory requirements, such as fire safety or gas compliance, which, while essential, may create limitations for identifying emerging risks without obvious warning signs.

 

Organisations can counteract this by conducting in-depth reviews, scanning the horizon for emerging threats and collaborating widely within and outside their organisations to uncover hidden risks. Data analytics and external audits can also reveal trends or patterns indicating potential problems.

 

Expanding the scope of risk assessments to spot the less visible threats – as well as helping to ‘find the silence’ among their customers – helps organisations anticipate disruptions and enhance their resilience.

 

So, should we rest easy?

 

The opportunity housing organisations have is huge – to be a force for good for customers, communities and society.

 

We are undoubtedly facing mounting pressures from all sides and need to respond with tenacity, creativity and courage. It’s no wonder the responsibility weighs heavily at times.

 

A solid risk framework underpinned by a strong organisational culture can provide assurance that we have our attention focused on the key issues and allow us to navigate these challenging times with confidence.

 

Every organisation’s challenges may be unique, but the commitment to proactive, collaborative risk management is a universal foundation for success.

 

Yogeta Partridge, founder and director, Rydeo Consulting; Judy Hardy, chief risk officer, Places for People