Housing association refers to a non-profit generating organization offering flats or houses to individuals with particular needs or low income earners. Therefore, the main aim of housing associations is to establish affordable housing that suits the needs of people in respect to the prevailing economic situations. Enterprise risk management implies the procedure of arranging, coordinating, directing, and controlling operations of an entity in the quest of diminishing or minimizing the impact of risk in relation to the organization’s capital and returns or earnings. Therefore, the ideology of enterprise risk management is fundamental in the housing association sector. The study will venture into all aspects, factors, principles, and perceptions surrounding housing association discipline. Consequently, in the process of evaluating the underlying case study, it is imperative to consider every aspect that is in line with associations.
In regard to the underlying case study, the association that is identical or resembles my surrounding is that of “Guinness Trust” implying that individuals are living in a set up that have been improved significantly to meet their needs and putting into consideration the prevailing economic situation. The aim of the underlying association is to establish upgraded dwellings for the industrious people. The undertaking is proving to be economically viable, due to the fact that the prevailing economic situation is put into consideration in the quest of establishing the underlying dwellings. Furthermore, the association is not after making profits, but it is core aspect is to oversee social responsibility in the community. The secondary housing association is “metropolitan association” which also boasts of establishing afforded housing and care. Hence, indicating that its mission is to improve peoples’ lives via affordable high quality dwellings. Consequently, it is apparent that the major aim of most associations is to provide affordable services to the community.
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To begin with, are the risks facing the metropolitan association, the major challenge is the influence arising from political institutions that overshadows a higher policy making procedure. The underlying challenge may be deter the progress and prosperity of the association, due to the fact that it may interfere with the strategic positioning of the association. It is apparent that efficient policy making is fundamental in propelling the underlying association into greater heights. Therefore, any induction or aspect hindering the process of proficient policy making presents a risk or challenge to the association. Consequently, the association has to come up with a way of managing arising risks. Entity risk management has underlying principles that are vital in solving arising risks among various organizations (Carroll, 2014). Therefore, the underlying association has to assess the risk that presents itself and evaluate the stipulated principles that offer guidelines of managing the risk in question. The association is also faced with the risk of capacity building due to the fact that is a non-profit organization.
Also, it is perceptible that the risk facing the metropolitan association is the persistent disadvantage of Second-Tier Cities that are ever present. In addition, there is the challenge associated with the integration of the metropolitan process. It is notable that the process comes along with various risks due to the fact that it is accompanied with various difficulties or handles that need to be sorted. Therefore, the association has to go an extra mile in developing strategies that will enhance a smooth transition of the process. The gap that exists between first-tier cities and second-tier cities also present a risk in respect to the strategies of metropolitan associations. Therefore, it is imperative to undertake a comprehensive and elaborative evaluation in order to develop decisive strategies that are geared towards shunning the existing gap. Therefore, the association should establish the best was of handling an arising risk.
The major challenge facing Guinness partnership trust is entity risk management. It is apparent that association leaders manage risks and they have been doing so for a long time. Risks do emerge and develop there it is important to understand the concept of enterprise risk management (Beasley, 2016). Therefore, ignoring the principles of entity risk management may be detrimental to the organization. For instance, it its operation the association is faced with several challenges and risks; therefore, understanding the process of entity risk management is vital in solving the ever changing risks. The association encounters difficulties due to the dynamic nature of risks arising within the organization. Therefore, the organization has to structure itself in a manner that it full understands the elements of enterprise risk management as it will aid the association in handling its major risks in a decisive manner.
The rate of house building being half of what it should present a risk to the association due to the fact that they have not establish a capacity to build enough houses that bare affordable and of high quality. Potential returns are likely to decrease due to the fact that banking is unwilling fund further growth, thus the association is limited to the available resources. The association is focus is to offer affordable housing: therefore, due to the presence of unaffordable houses the association is likely to attract more returns as individual will prefer housing association that is affordable. Consequently, the association has to implement enterprise risk management procedures and principals that are significant in enhancing efficiency among associations (Holi, 2016). The association’s charitable aims are met due to the increased returns accumulating from affordable housing. The availability of resources regulates viable constraints of the association.
In regard to the financial position of the underlying association and its charitable aims the risk appetite should be moderate. This is due to the fact that it will enable the organization to strike a balance between its operation and charitable objective due to budget constraints. The generic strategy outlined in the case state is appropriate for the association due to the fact that it is in line with the mission of the association. In the dynamic business world, the model of an entity is always challenged and exposed to various arising risks. Therefore, it is important for an association to strategically position itself in order to cope up with the ever changing business world (IMA, 2017). The generic strategy is appropriate due to the fact that it is established in a manner that captures the dynamics of the corporate world. Therefore, it suits the association as it puts it in a structure or platform that adapts to the ever changing environment. Consequently, it is apparent that a housing association is inclined towards social housing and responsibility. Thus, the main responsibility of an association is to provide affordable services and products to the public.
The housing association is significant in the society due to the fact that it considers social responsibility. Furthermore it provides a platform for employment opportunities. For instance, it is apparent that the underlying housing associations have created employment opportunities to several individuals in the society. This goes a long way in improving the living standards of individuals in the society. Therefore, it is notable that housing associations in the contemporary society do contribute greatly to the welfare of individuals. Also, the housing association fact into the development of the society, due to the fact that it sets up well established structure and infrastructure in the community. In addition, it is notable that the housing association does appreciate the less fortunate in the society, due to the fact that they incorporate charity programs in their undertakings. Therefore, it is important for the Housing association to continue scaling the heights in the society and promote growth, development, and prosperity in the community.
References
Beasley, S. M. (2016). What is Enterprise Risk Management? Retrieved from: https://erm.ncsu.edu/az/erm/i/chan/library/What_is_Enterprise_Risk_Management.pdf
Carroll, L. R. (2014). Enterprise Risk Management: retrieved from: http://www.ashrm.org/pubs/files/white_papers/ERM-White-Paper-8-29-14-FINAL.pdf
Institute of Management Accountants, (2017). Enterprise Risk Management: Tools and Techniques for effective Implementation. Retrieved from: https://erm.ncsu.edu/az/erm/i/chan/m- articles/documents/IMAToolsTechniquesMay07.pdf
Holi, S. (2016). Implementing Enterprise Risk Management: retrieved from: https://www.icpak.com/wp-content/uploads/2016/09/Implementing-ERM-Sep-2016.pdf
