Originally published in the Autumn 2025 edition of The Property Institute’s AQD magazine. Written by our colleague, Emma Vigus, Head of Residential at Thomas Carroll.
Why Risk Management Needs to Be More Than a Box-Ticking Exercise
Block and estate management is one of the most complex and pressurised sectors in property. Between demanding clients, cost constraints and the ever-evolving regulatory landscape, it’s easy for “risk management” to slip into a checklist mentality, something to get through rather than a core part of how a business operates.
But true risk management is much more than compliance. It’s a mindset. One that underpins good decisions and strengthens your business for the long term.
At its heart, effective risk management starts with culture and ends with accountability. It’s about people, values and leadership, not paperwork.
What Does “Delivering the Right Outcome” Really Mean?
In this context, the “right outcome” doesn’t always mean doing everything a client asks for. It’s about balancing moral duty, professional competence and contractual obligations, and sometimes having the courage to say no.
Ask yourself:
- Is this within our contractual or statutory obligations?
- Do we have the expertise and resources to deliver it safely?
- Are we insured for any liabilities that could arise?
If the answer to any of these questions is “no,” then taking the action could expose both your business and your clients to unnecessary risk.
Lessons From the Pitch: What Brazil’s 7–1 Defeat Can Teach Us
When Brazil lost 7–1 to Germany in the 2014 World Cup semi-final, it wasn’t just a sporting shock, it was a masterclass in what happens when strategy, leadership and resilience fail under pressure.
Overreliance on star players, lack of adaptability, and emotional strain combined to create a perfect storm. The parallels to business are striking:
- Overdependence on key individuals
- Resource shortages
- Weak leadership
- Inflexibility in the face of change
Risk management, far from being the opposite of agility, actually requires it. The ability to adapt quickly, while guided by clear values and strong processes, is what keeps organisations resilient when things go wrong.
When Culture Fails: A Case Study
Consider “Jo,” an experienced and conscientious employee sent to inspect several new apartments. Pressed for time and without his laser measure, he estimated dimensions instead of taking accurate readings. Weeks later, his error led to a costly mistake, revealing deeper cultural problems within his company.
Understaffing, salary freezes, unrealistic workloads and short-term cost-cutting had all created an environment where mistakes were inevitable. The result? A £30,000 loss, a key employee’s resignation and ultimately, the loss of a major client.
This story isn’t unique, and while not life-threatening, it echoes the systemic issues that contributed to the Grenfell tragedy: poor communication, weak leadership, and misplaced priorities.
Culture, Competence and Courage
Regulation and competency frameworks will continue to evolve, and they are vital. But no rulebook can replace moral leadership and a strong internal culture.
As Peter Apps wrote in Show Me the Bodies:
“If the consequences are massive, you cannot ignore the potential of the consequences even if the probability is small.”
Risk management succeeds when people at every level understand the impact of their actions, feel supported to do the right thing, and are brave enough to speak up when something isn’t right.
Final Thoughts
Effective risk management is not about fear; it’s about empowerment. It gives your teams the structure, confidence, and clarity to act decisively, even under pressure.
For property professionals, it’s also about protecting the lives and homes entrusted to you, because when it comes to risk, doing the right thing isn’t just good business, it’s the right thing to do.
Get in Touch
If you would like to learn more about how we can help, get in touch with Emma Vigus.
- emma.vigus@thomas-carroll.co.uk
- 02920 853792
As Head of Residential at Thomas Carroll Insurance and Risk Advisors, Emma works with block and estate managers to create tailored, practical risk management frameworks that protect people, properties and reputations.
