Every year, every Agency client housing co-op receives a Risk Assessment Report. It is one of the most valuable tools for understanding your co-op’s financial health and future prospects.
The report, together with the Plain Language Financials and Performance Report, is part of the Agency’s Annual Health Check service. Its purpose is to help co-ops identify and recommend actions to reduce risks before they lead to serious financial problems.
The Risk Assessment Report evaluates three key areas: liquidity, net income and physical condition. These indicators are colour-coded from excellent (green) to poor (red), giving boards and managers a dashboard view of where their co-op stands. The report also flags specific risk factors, such as inadequate insurance or directors in arrears, and offers tailored suggestions for improvement.
Understanding risk is essential for good governance. A co-op rated High risk may be struggling with vacancies, poor maintenance or financial instability. On the other hand, a risk rating of Low often reflects years of careful management, strong reserves and well-maintained buildings.
But even low-risk co-ops aren’t immune to challenges. As their situation can shift over time, the report helps track whether it is strengthening, stable or weakening.
The Risk Assessment Report can be a wake-up call for board members, especially those new to the role. Like all our reports, it was created to translate complex data into actionable insights and help directors make informed decisions that will protect the co-op’s long-term viability.
Risk assessment isn’t just about numbers; it’s about foresight, accountability and planning for a sustainable future.
Learn more about our reports and the Agency’s Annual Health Check service.