60 Virtual Brochure – March 2025 Estates infrastructure Ranked unmitigated mitigated Although estates risks appear on just over half of risk registers in our sample, the ranking of both the average inherent risk and residual risk have increased this year, moving up to 4th position for inherent and mitigated respectively from 9th and 10th in 2023. Risk descriptors address a wide range of concerns, with an increasing focus on optimising space utilisation, risks to delivery of planned investments, maintenance demand and costs and the subsequent risks to academic delivery and student experience. For some, energy consumption and costs are a particular concern. Mitigation strategies reflect local circumstances and include: - Refreshing of estates masterplans and student accommodation strategies - Tighter governance and management of capital projects and estates investments - Leveraging opportunities for external investments in estates - Reviews of space utilisation to better reflect changed working patterns and research and teaching requirements. Risk commentary The increases in ranking of estates risks are likely to be a consequence of the financial pressures that all institutions are dealing with. Risk registers reflect an environment where there are increasingly hard choices about the scope and timescales for investment in new buildings or refurbishment, and funding for maintenance is squeezed. Risks in this area are likely to grow for many institutions while challenges about the funding of the sector remain unaddressed. We note that institutions who have introduced robust estates asset management processes and management systems are able to more effectively plan and manage renewals and maintenance. Audit committees and governing bodies will want to assure themselves that capital projects are clearly aligned with strategic goals and benefits, are effectively governed and managed, and have an intense focus on the definition and realisation of outcomes and benefits. They may also wish to consider where extreme weather risks are recognised appropriately, and sufficient focus is being paid to climate change resilience. 4th 4th
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