Risk Management articles for surveyors

Home information u-turn packs

by Tim Prior LLB AIRM, Senior Risk Management Consultant

Whether it’s a decision to relocate, to open a new office or to move into or out of a particular area of work, there will be associated risks, known as strategic risks. Some of these risks will be greater where the firm has little or no control over aspects of the process.

The introduction of Home Information Packs (HIPs) on 1 June 2007 is a case in point. Many, but not all firms, were keen to embrace the new opportunities. The risks inherent in the process were well illustrated when the government decided in July 2006 that Home Condition Reports would no longer be compulsory.

Strategic risks tend only to be relevant to the profitability of a business and rarely lead to negligence claims. However, they can do so if the management resources diverted to the new project mean that the current activities of the firm are not being properly managed. Poor supervision of day-to-day activities can lead to breaches of procedure going unnoticed and to the escalation of complaints into claims.

Whenever you take strategic decisions, ask yourself:
· What impact the new project will have on day-to-day activities
· Whether your ability to supervise the running of your firm will be affected. If so, how?

Take steps to minimise their impact or you may find that your investment of time and resources were not the only costs of the new project.

Surveyors

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