Page 59 - Pobl Annual Report FY25

Annual Report 2025 57
Key Strategic Risks
Impact of Cost‐of‐Living crisis on customers.
Increased rent arrears and bad debt due to the
financial pressures on customers. These stem from
the cost‐of‐living crisis, the impact of welfare reform,
increased fuel, food and energy costs. Such increases
would put additional strain on our resources and
impact our ability to meet budget.
Pressure on Contractors
Inflationary pressures, wider economic factors,
increased complexity and delays in the development
and build processes have put considerable financial
pressures on contractors in recent years.
Whilst inflationary pressures have eased the ongoing
risks could cause contractors to become overstretched,
which may impact the quality of our developments or
our ability to deliver on time or to budget, impacting
Welsh Government housing targets.
WHQS Compliance
Pressure on budgets could restrict our ability to invest
in WHQS works whilst the level of funding support
from WG is still to be clarified.
There are also timing challenges of coordinating the
component replacements required under WHQS 23
with WG's decarbonisation aspirations.
Property Compliance
Failure to meet regulatory compliance targets across
six key areas, including Gas; Electrical; Fire; Legionella;
Asbestos, and Lifting Operations and Lifting Equipment
Regulations (LOLER).
• Hardship fund and Sustainable
Tenancies Grant
• Automated Universal Credit
(UC) income
• Early application for UC
Alternative Payment
Arrangements (APAs)
• Targeted Advice and Support
provision for top 50 arrears
accounts
• Arrears KPI Performance reporting
• Affordable Rent Policy
• Contractor Monitoring Group
• Performance Bonds
• Building Control visits
• Contingency in handover and
budget forecast
• Viability assessment
• Performance Data
• Programme and Cash Flow
monitoring
• Increased capital investment
• WHQS Compliance Policy
approved Jan 2025
• Performance Data
• Monthly Exec review
• Asset Management
Transformation Strategy
• Weekly compliance monitoring
reports
• Performance reporting
(monthly)
• Risk reporting (quarterly)
• WG Business Continuity Survey
• Control of Contractors Procedure
PRINCIPLE RISK AREA AND DRIVERS CURRENT AND PLANNED MITIGATION