Structure and governance

Longhurst Group Limited is a registered housing provider, regulated by the Regulator of Social Housing (RSH). For the period this report covers, the Group maintained the highest ratings for governance and financial viability, of G1/V1. However, in 2023, these ratings were reassessed as G1/V2. We follow the National Housing Federation (NHF) Code of Governance 2020, and prior to that, were fully compliant with the 2015 NHF Code. The Group operates a closed membership for shareholders (nine in total), with each member holding an equal share of £1 standard voting rights.

Given the diverse nature of our business, the identification of risk is a continuous process which is embedded into our systems to aid decision making and allow effective management. Our starting point for considering the risks that could affect our business is to look at risks that could stop us achieving our strategic objectives as defined in our annual business plan. Management teams at all levels are required to discuss current risks, horizon scan for identification of new and/or potential risks to ensure the Risk Registers remain current and relevant. Teams are supported in this work through regular input with our Risk and Assurance Manager who has overall responsibility for the administration of the risk management system. Strategic risks are owned by a member of the Executive Leadership Team and risks in the Operational Registers are mostly allocated to officers in tiers two and three of our management structure. Risk Owners are required to provide regular updates and reviews of their risks. Any actions required are controlled by automated email reminders in the 4Risk system and the Risk and Assurance Manager regularly reviews action status reports to ensure actions are completed within the required timeframe. Risk Management updates are provided to the Executive Leadership Team (ELT), Directors Group, our Development and Finance teams, Business Continuity Assurance Group and other forums across the Group as required. To ensure that the controls identified as mitigating the risk are effective and in place and being utilised, we use the three lines of defence method. We utilise a special risk management system which helps to co-ordinate, link risks, provide reports, automate reminders and ensure a consistent approach across all areas of operation. Meanwhile, all reports to Board and committees must include a section outlining the risk issues.

To ensure that Risk Registers are given the appropriate level of scrutiny, the following is the oversight arrangements in place:

Strategic Risk Register

Reviewed by our Group Board and Audit and Risk Committee. The Strategic Register holds the key risks that would prevent the Group delivering its business plan, vision and values – it’ll typically contain 15 to 25 risks to enable the focus and priority required. Operational strategic risks and key operational risks are reviewed at the following committees/boards:

• Development and Asset Investment Committee and Keystone Development, sales and financing risks.
• Finance and Treasury Committee and Libra Board Treasury management, development and finance risks.

The risk management reports to Boards and committees include a Controls Assurance report, which is supported by a narrative report that adds further context and detail. It also considers recent updates and changes to the registers, and the discussion of current topical risks and emerging risks. The Group Board has expressed a risk appetite for each area of its operation and the inherent and residual risk scores are managed in line with this board statement.