The case considers the strategy choice, risk analysis, and risk appetite of four associations:

1. Large London association (London & Quadrant, 70,000 housing units)

This is one of the largest associations with a very strong financial position. It is following an aggressive development policy with a mix of

Exhibit 8.2 Sample Impact Scale





Financial % of Turnover

Customers and Staff


Legal/Regulato ry


Very high

Major impact on direction of business

Above 10%

Compulsory transfer of assets



Major impact on important business objective

3.1% to 10%

Significant impact on many

customers or staff

Significant resource to rectify

Major adverse publicity and external interest with damage to reputation and/or long-term impact





Noticeable impact but business still on course

1.1% to 3%

Noticeable impact

Longer-term adverse publicity, locally contained

Loss of regulatory approval



Minor importance

0.3% to 1%

Minor or short-term problems

Short-term local adverse publicity

More serious breach but no long-term implications


Very low

Less than 0.3%

Impact both minor and short-term

No adverse publicity

Minor breach of legal/regulatory requirements

intermediate rent, market rent, and houses for sale in order to meet the expanding housing needs of London and the prosperous South East. It has invented a number of innovative financial instruments and renting regimes to make this high rate of expansion possible.

2. Medium-sized South Wales association (RCT Homes Limited, 10,000 housing units)

Based in the Welsh valleys to the north of Cardiff, an area of acute depression, this association has set up a number of social enterprise subsidiaries to help provide employment in the area. The association is also participating in a risky joint venture hoping to build 1,000 units mainly in the northern hinterland of Cardiff, the prosperous Welsh capital.

3. Specialist association (Ability Housing Association, 550 housing units)

This association provides housing and support services to disabled people living in the South of England. It works in partnership with other agencies to help deliver flexible and tailored housing and support for people who want to live more independently. Its housing stock comprises mostly either wheelchair-standard housing or supported housing for people who need additional care or support.

4. Medium-sized association in the prosperous corridor to the west of London (GreenSquare Group, 11,000 housing units)

The GreenSquare Group was originally formed in 2008 from two associations (Westlea Housing Association and Oxford Citizens Housing Association). Another Oxford-based association, Oxbode, joined the Group in November 2012. The Group has achieved an improvement in administrative efficiency and the development of product expertise, with a mixed portfolio of housing product lines and support activities.

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