In any organisation and in any sector, the importance of boards exercising effective control and oversight is clear. History is littered with examples of what can go wrong when this isn’t the case. The risks become even more pronounced in a difficult and uncertain trading environment, as registered providers (RPs) are currently experiencing.
As the larger and more innovative RPs continue to diversify and innovate, the regulator has committed to ensure that social housing assets are not put at undue risk. While the form that future regulation will take is still uncertain, the regulator continues to highlight the board’s role and the need for ’board grip‘.
We believe that board grip is about having full confidence in the capability of key systems to support organisational health and minimise the burden of regulation. It’s about bringing together, into one team, people with the right mix of skills and experience, deploying them effectively and providing them with the information they need to lead the organisation.
The competencies and skills the modern social housing sector board requires are diverse, reflecting their various activities and risks. Creating a team and framework where these different skills are brought together effectively is key to an organisation’s success.
Over the coming months in a series of mailings, we will highlight the aspects of 'right skills, right information and doing things in the right way' that distinguish good board grip and governance.
We expect to cover:
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.