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Notifiable EventsAs stated previously, it is the individual AHB thatis responsible for managing its own risks andnot the Regulator. The Regulator expects theAHB to demonstrate a cooperative approachto regulation and to be forthcoming with informationthat it regards as important, such as identifying risks tobe managed.Indeed, all AHBs (irrespective of Tier classification) willbe required to inform the Regulation Office of certainnotifiable events (events or key risks that in the AHBsopinion give serious cause for concern), the purpose ofwhich is so that the Regulation Office has a knowledgeof any new risks which arise. The governing Boardshould be cognisant of these requirements.Notifiable events are events which may be seen tobring the AHB into disrepute, threaten the organisation’sstability, efficient operations and viability. Events wherethe AHB would be expected to contact the RegulationOffice include, but are not limited to:n Resignation of a Chair, CEO or Finance Directorn Resignation of internal or external auditorsn Before entering into loan finance for developmentpurposes (only where loan finance for developmentpurposes has not previously been used by the AHB)n Discovery of serious fraudn Potential litigation/material third party claim whichwould have a significant impact on businessn Material breaches of health and safety whichpresent significant risk to life or serious threatto safetyn Significant liquidity issues. In the case of Tier2 and Tier 3 AHBs with development finance,the Regulator expects the Board of the AHB toregularly review (at least quarterly) the financialinformation pertaining and to notify the Regulator,if over a period of time, key liquidity ratios (as setout in Appendix C4 and B5) are being breached.If liquidity issues are identified as having beenbreached, there should be an onus on themanagement team to notify the Board of thisoccurrence, where the Board is not meeting on amonthly basis. Liquidity is an organisation’s abilityto pay its immediate debts as they fall due and itcan be monitored by reviewing ratios, such as theCurrent Ratio i.e. Current Assets divided by CurrentLiabilities, Cash from Operation and Interest Cover.(Full details are set out in Appendix C4 and B5)n Material fall in income which may affect liquidityn Proposed mergers or acquisitions with other AHBsn Guarantees given by group companies whichcould significantly impact the AHBn Any other events which could give seriouscause for concernAny of the above information should prompt a dialoguebetween the Regulation Office and the AHB. Assurancescan be sought/obtained by the Regulator regardingthe impact of the event. These assurances should notimpact on the day-to-day running of the AHB’s businessand it is not our intention to be involved in the generalmanagement of any AHB’s business.The Financial Standard and Assessment Framework21