Herron Todd White - Risk Management & Compliance
We are committed to the highest standards of integrity and undertake ongoing professional development so as we stay at the forefront of our industry.
Professional Indemnity Certificate of Currency (CoC)
Herron Todd White PI Certificate of Currency July 2008
Our Risk Management Philosophy
Our objective is to develop organisational wide capabilities in risk management so as to ensure a consistent, efficient and effective assessment of risk in the achievement of the organisation's objectives.
Herron Todd White views risk management as integral to its objective of creating and maintaining value and the successful execution of its strategies. Risk management requires the consideration of the risk and reward relationship in the management of all activities.
The Risk Management Policy forms part of the corporate governance and internal control arrangements of Herron Todd White. The objectives of the company's Risk Management Policy and processes is to support the organisation's objectives by:
- Promoting a broader risk aware culture throughout the organisation;
- Contributing to more efficient allocation of capital and resources within the organisation;
- Protecting and enhancing assets, company image and shareholder value;
- Identifying any unmitigated risks and formulating action plans for its treatments; and
- Ensuring compliance to legislative requirements and code of practice.
"We view RISK MANAGEMENT as integral to our objective of creating and maintaining value and the successful execution of our strategies"
Herron Todd White's fundamental purpose is to generate sustained performance for shareholders through the provision of a comprehensive range of property valuation, research and advisory services. The annual strategic planning process is integral to identifying, communicating and focusing on those factors that are critical to Herron Todd White achieving our fundamental purpose.
Strategic plans are prepared for business units and functional areas. The strategic planning process forms one of the key elements of Herron Todd White's risk management framework. It is through effective planning that management identify, analyse and document risks and risk management strategies. Additionally, it is through this planning process that key risks and risk management strategies are communicated to the Board.
"We believe in PREVENTING losses"
It is recognised that risk management is an integral part of good management and corporate governance practice and that, in relation to commercial strategy, an element of risk is inevitable and in some cases encouraged. Our philosophy supports a structured and focused approach to managing and auditing risk to complement the strategies adopted to achieve the corporate objectives, increase confidence and enhance the value of services Herron Todd White provides.
Herron Todd White views successful risk management will be achieved through the development of a management culture where the consideration of risk and reward is instinctive in day-to-day activities. In developing these capabilities, management are authorised to act in accordance with agreed policies and procedures and clearly defined delegations of authority.
"We believe successful risk management requires the maintenance of a culture that encourages employees and managers to communicate risk management issues, concerns and recommendations without fear of retribution"
Our Internal Control Environment
Herron Todd White has developed an internal control environment to provide assurance that business risks faced by the organisation are managed at acceptable levels.
Strategies to maintain sound internal controls are based on risk analysis of the internal operations of Herron Todd White, with a focus on the key elements of:
- Organisation Environment
The structure and broad policies adopted to manage the organisation and assist employees to carry out their roles and functions.
- Information System
The methods and procedures used to collect, collate and distribute financial and non-financial information.
- Processing System
The mechanisms in place to ensure that transactions are captured, checked and verified.
The following outlines those key internal controls that are in place.
"Our internal control environment provides ASSURANCE that the risks we face are maintained at acceptable levels"
Risk Management & Compliance Committee
This Committee has a holistic view to risk management ensuring Herron Todd White meets its corporate governance requirements. The Committee is responsible for the continuous improvement and facilitation of risk management processes, systems and activities that assist Directors and Officers to identify, monitor and manage at an acceptable level principal risks to the organisation.
The Committee assists Herron Todd White with corporate and operational risk profiling, putting strategies in place to further increase the internal control environment, monitoring legislative and professional practice compliance, overseeing internal auditing of key systems, overseeing insurance, and ensuring Crisis Management Plans and Business Continuity Plans are in place.
As part of Herron Todd White's commitment towards continuous improvement in risk management, compliance and quality control processes, Herron Todd White has a dedicated resource, in the position of, Manager, Business (Risk & Compliance) reporting to the Chief Executive Officer. This person holds an MBA; Grad.Dip (Bus Adm), Grad Cert in Risk Management; and BAppSci (OH&S). He has held similar roles in other industries, and is a part time lecturer at Queensland University of Technology in Risk Management.
Quality Assurance System
Herron Todd White is truly committed to maintaining and improving our record of delivering valuation services on time, on budget and with real business outcomes.
Herron Todd White has a robust quality assurance system to ensure valuation accuracy across our service delivery network. This system comprises a number of key components, including documented quality processes and procedures, and formal quality reviews of valuations.
At the core of its operational quality assurance system is the commitment to valuation quality reviews. These reviews are conducted by nominated Herron Todd White quality reviewers, who are typically project or account managers and Directors.
This commitment is embedded in our business processes and systems, and we continually strive to improve our processes and to support our employees to enable them to deliver quality, professional valuation services.
"Our QUALITY ASSURANCE PROGRAM ensures that our staff and management are constantly striving to improve our service delivery performance"
Information Technology
Herron Todd White's commitment to quality is a key facet of its network-wide valuation management system, ViPA. The system enables full transparency of a valuation, allowing authorised Herron Todd White personnel to view in-progress and completed valuations. This capability allows us to call on our Australia-wide network of valuers and management to review valuations as required to meet client deadlines.
ViPA also has a number of compulsory, system generated, automatic checks (sometimes referred to as "sanity checking") which assist in highlighting any potential deviations from agreed Herron Todd White processes.
Quality Auditing
Herron Todd White has implemented an audit program across our entire network of offices nationally. This system has provided additional strength to our quality assurance framework and has increased valuation accuracy through documented guidelines and review.
Under the programme, all Herron Todd White residential valuers are subject to at least one random valuation file audit per month. These audits include a review across several qualitative, quantitative and compliance factors.
Policy on Use of Underqualified or Student Valuers
Herron Todd White has been outspoken within the property industry for our refusal to utilise underqualified and/or student "valuers" to undertake property valuations. Our position closely aligns to our client's Standard of Care, and we welcome the inclusion of this requirement in our contract for services.
Job Matching to Staff Experience
Herron Todd White's valuers have extensive experience that we leverage to train and develop our other employees. For example, valuers undertaking valuations of high value properties generally have a minimum of 5 years valuation experience and have a demonstrated record of undertaking valuations in the applicable price bracket.
Staff Training and Personal Development
Herron Todd White also has a comprehensive induction and ongoing training program to maintain a consistent, high quality service delivery approach across its network of valuers. For example, we have a structured induction training program for new valuers joining Herron Todd White, which provides guidance and support during the induction phase.
Herron Todd White encourages collaboration and peer review with colleagues and Directors, particularly when dealing with difficult or unusual circumstances.
Risk Management Training for Staff
All Herron Todd White valuation staff are required to undertake Risk Management training at least every 3 years. This training has been complied and endorsed by the Australian Property Institute.
The contents of this training covers: best practices of a professional; better communication; client selection; adherence to basic valuation principles; principles of liability; rules of conduct, code of ethics, disciplinary proceedings and the regulatory framework; professional office practice procedures; and awareness of insurance issues.
"All staff are required to undertake RISK MANAGEMENT TRAINING"
Environmental Protection
Herron Todd White is committed to managing its operations in an environmentally responsible manner at all times and at all offices throughout Australia. Herron Todd White has developed an Environmental Management System (EMS) designed to ensure a process of continual improvement in its environmental management. The two core elements of the EMS are the Environmental Policy and the Procedures Manual.
The Environmental Policy states, in a simple way, the environmental performance goals of the organisation and provides guidelines for the EMS. The Procedures Manual provides a set of management steps, focussing on the organisation's achievement of its environmental goals, that form part of the wider management of the organisation's operations. Please email us if you request a copy of these documents.