Risk appetite statement - Avenues Group

Risk appetite statement

Our strategy is to support people with complex needs to lead the life that they want, where they want and supported by whom they choose.

To achieve this we deliver high quality community services supported by professional business support services whilst maintaining financial sustainability and delivering excellent outcomes for the people that we support.

As a leader in the field of community support for people with complex needs the organisation will always be exposed to a number of risks that may affect quality of care, financial loss, legal/regulatory requirements and ultimately the reputation of the organisation.

To address the current core risk exposure, Avenues has a robust risk management process in place that is used consistently throughout the business and is subject to multiple levels of management review and scrutiny up to Board level, where appropriate, there is also a clear escalation process in place. The Board has reviewed these processes in the context of the current business activities, skill levels in the organisations and believe they are appropriate to the level of risk exposure.

The business strategy agreed by the Board builds upon the core competencies of the organisation and its ability to absorb more risk in pursuit of its business objectives. The Board considers the current scope of potential new business activities can be managed within the current risk management processes but recognises the higher potential for new risk exposure not previously seen.

As the business develops and potentially moves into new activities or geographies the Board will review the organisations ability to manage the additional risk exposure that may arise and seek to mitigate these risks or ultimately limit these activities if the Board considers the risk exposure is not manageable.

The reserves for the whole group as at 31 March 2021 were £5,308k. There are currently no free reserves as the reserves relate to fixed assets which are for continuing use in the business and the value can only be realised if they are sold. The Board will take this into account when assessing our risk tolerance of any new activities or georaphies.