Sustainable Facilities Risk Management - by Facilities Risk Management

In the changing business environment of today there is more pressure for transparency in all business activities. This is especially critical in providing transparency of reporting and does not only relate to financial performance for the owners of building and property portfolios but also as it relates to legislative, environmental and social performances. This pressure is coming from owners, investors, the government and the community in general who now expect that these reports will show accurately the status of their investments or the condition of their properties which concerns the owner-occupiers, leaseholders, tenants, visitors or holiday makers.

It is now accepted practice that Body Corporate Managers, whether they be internal, external or function as a Body Corporate Committee must prepare reports that show that good governance is being addressed and that they are minimizing the risk of failure to maintain the sustainability and efficient operation of their properties. These bodies are responsible to provide services that are delivered in a way that contributes to the productivity and profitability of building occupants as well as improving returns for owners and investors. These services are the traditional building services such as repairs, maintenance, security and cleaning but now it is expected that highly technical and complex services be provided as well. There is a need that a more holistic approach to sustainable management be undertaken that identifies means of reducing the overall operational costs and improving the economic bottom line.

Sustainable management requires life cycle analysis and planning.  Also a costing and implementation approach to operations and maintenance is required. Using Risk Management principles as a tool will help identify any potential risk exposure and where savings can be achieved in waste, energy and water costs as well as insurance premiums. 

As recognized with the current financial situation there is pressure to reduce Body Corporate Fees or keep to a minimum but this is an artificial decision if it is to affect overall sustainability of the property. It is more critical that a proper analysis of current costs and possible cost savings be examined rather than to cut back on critical services such as preventative maintenance. Body Corporates need to become more accountable to their members and to show proper evidence of meeting their obligations.  It is the responsibility of every Corporate Body member to scrutinize the actions and costs associated with the operations of a Corporate Body rather than simply paying a regular account as they themselves as building owners are held accountable for any financial failures and any regulatory breach and possible litigation.

[Facilities Risk Management is an organisation that examines the operation of Body Corporates as relates to regulatory compliance and obligations, good governance, services provision, fire emergency, insolvency management, health and safety, maintenance and building dilapidation. FRM can take on the role of being Body Corporate Management if required.]

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