b'CHP financial statements 2020/2021Our people RiskThe continued success of our business is due to our people and their dedication to our socialThe Board is responsible for setting the overall direction our appetite for those in the context of our operating purpose. We continue to enjoy a low turnover ofof the group. It ensures that we have an appropriate, environment and opportunities. employees, with the last year being 6.2 percent.robust and prudent business planning, risk and control We believe that our open and caring approach isframework. During the year, we refreshed our RiskThe impact of the global pandemic was high on the Board a key factor in helping us to attract and retain theManagement Framework, ensuring it is used in all levels agenda throughout the year. The Board met weekly as this best talent from a diverse range of backgrounds.of decision-making. risk evolved, working to keep our customers, our people and We pride ourselves on being an equalour business safe. opportunities employer and invite applicationsThe Corporate Strategy reconciles our ambitions and visionThe Board has identified the seven highest risk areas on from all members of the community, and we havefor the future with the key risks we think we will face and delivering our business objectives. worked hard to increase the diversity of our new hires. A range of people are represented in ourStrategic risk Mitigationworkforce, currently 7 percent of employees have a disability and 5.99 percent of our employees1. Decarbonisation (Net Zero): TheThe Board has created a carbon Net Zero fund to build up reserves to meet future are BAME. A breakdown by gender of our team isnationwide commitment to Net Zerodecarbonisation requirements. We are committed to exploring other avenues of shown below:means we must carefully consider thefunding streams and developing other strategies such as technology to deliver our Men:Women impact this will have on the materialenvironmental objectives over the coming years, to ensure that we can meet our costs involved in achieving this.obligations. As these areas are delivered, the risk of material costs over and above the Non-Executive Directors 5:4 business plan should diminish.Leadership Team 5:3 2. IT (data) security and malware security:Strong processes are in place with all remote access subject to controls and A security breach through hacking,regular external testing and validation. All systems are firewalled, and multi-factor Employees167:167 internal fraud or malware, renderingauthentication widely used. A rigorous IT Security Policy is in place and policed, with systems unusable or compromising theongoing phishing training carried out across the business.business data. We invest heavily in our people to ensure they have theECCPS was a final salary scheme until 31 March 20143. Poor strategic asset management:The implementation of the new Target Operating Model strengthens our dedicated right skills, knowledge, training and support to provide aand became a career average scheme from 1 April 2014,resulting in lower quality in our homesasset management team and creates a new team for building safety. The Asset consistently excellent service. Whilst the last year slowedoffering good benefits for our employees. The ECCPSand a potential increase in reactive Management Strategy provides a toolkit for the company to enhance our proactive recruitment, we have an apprenticeship and graduatewas closed to new employees in October 2018, but werepair spend. approach to managing the quality of, setting the standards for, and understanding the training scheme we are proud of, generating home-growncontinue to contribute to the scheme in line with levelsvalue of, our portfolio. This drives our future maintenance and investment plan. We gain talent. Many of them go on to permanent employment set by the actuary. The Aviva defined contribution schemeinsight through our customer engagement activities to inform our work in this area.with us. is now our sole pension scheme and we match employee4. New homes contractor failure: TheWe carry out effective due diligence at pre-contract stage, limiting our exposure with Pay and benefits are an important factor for employees.contributions 2:1 up to a maximum of 12 percent potential for delivery delays, legalnew contractors. Warranties with insolvency cover are standard in all contracts, with We regularly review our salary performance, rewardsemployer contributions.disputes and additional costs. additional contingency to respond to specific risks. Effective contract and project and benefits to help meet our objective of being a greatThe most recent actuarial valuation of the ECCPS formanagement is in place to identify potential failure and we continually review our place to work and to maintain our competitive edge in theaccounting purposes took place as of 31 March 2019financial position, ensuring effective payment scrutiny and control.market. We are committed to paying all staff at least theand has been reflected in the adjustment to the pension5. Shared ownership and market sales:We have restructured our Sales Team and revised our processes and targets to achieve a living wage (as determined by the Living Wage Foundation)liability. The result of the latest triennial actuarial valuationFailure to sell shared ownership andgreater percentage of off-plan sales. Before approval, each shared ownership or market and we set salary levels to achieve this. was an improvement in the deficit position, with ourmarket homes or achieve our forecastopportunity is stress tested against a fall in market values and an extended sales period We have two pension schemes. The Essex County Councilshare of the scheme being fully funded. The next triennialmargins, resulting in lower-than- to mitigate market downturns.valuation will be in March 2022.expected income compared to the Pension Scheme (ECCPS) - a multi-employer definedbusiness plan.benefit scheme - and a stakeholder defined contribution pension scheme operated by Aviva.6. Contractor failure (asset): ContractorsWe rigorously assess the financial standing of our suppliers prior to contract award. relied upon for essential maintenanceWe ensure all contracts are closely managed and monitored. The Board considers and repairs falling into liquidation. contingency plans for contractor failure. 7. Employer health and safety:We have extensive employee training programmes on health and safety, and we review Employees are seriously injured orand communicate risk assessments and method statements. We carry out safety die through accident leading to legalinspections and complete accident and incident investigations to capture lessons consequences and reputational damage learned. We stay ahead of changing regulatory and legislative requirements by training and developing competent employees. We have strengthened our Corporate Health and 6.2% 7% 5.79%9% Safety Team to provide further assurance.The Board continually refines and develops its approacha going concern. We have limited private market sales to risk-taking and risk appetite each year. The Board hasexposure. We can switch new shared ownership homes to considered and reviewed all our key risks and applieddifferent tenures should there be a long-term impact on various stress testing scenarios to our financial plans. Thesethe housing market. turnover ofof employeesof employees show we are comfortably within our available borrowingThe Board and Leadership Team continue to monitor the employees have a disabilityare BAME facilities and covenants and therefore that we remainpandemic and follow government advice.14 15'