Income collection in social housing traditionally follows a rules-based methodology: when a tenant falls into arrears, it triggers a series of responses or actions escalating in urgency over time. However, this is very linear and inflexible shown by the following example. A tenant who defaults once but has previously paid on time every month clearly shouldn’t receive the same treatment as one who regularly requires intervention.
A risk-based approach, on the other hand, reviews individual resident profiles and behaviours on a case-by-case basis. Doing this enables you to identify the most effective and relevant next step for each tenant. It also offers a more proactive and flexible way to deal with the ever-changing dynamics of social housing.
The analysis of Risk is relatively new and innovative in the Social Housing Sector, and, it is a well established concept in the financial services sector. We are working towards helping our sector achieve better organisational outcomes.