CFDG and Cass Business School look back at ten years of risk management
The Charities Finance Directors Group (CFDG) published ‘Managing risk in charities: Lessons from the past decade and a look into the future’ at their recent Risk Conference 2012
Based on research by Paul Bennett and Tim Gage, two researchers from Cass Business School, this paper explores themes in the development of risk management in the sector and makes recommendations for improving practice.
The research was based on 10 years of findings from the CFDG/PKF Risk Surveys, focus groups with senior finance professionals in the sector and interviews with a case study identified as demonstrating good practice.
Caron Bradshaw, CEO of CFDG said; ‘Encouragingly, the report found that risk management practices have developed significantly in the sector over the past decade, with trustees becoming increasingly involved in the process. However, the effectiveness of risk management in the sector could still improve. There are indications that some risk analysis is more reactive and that the numbers of charities fully embedding risk management in their organisation is not increasing to the extent that it should be.’
The report makes several recommendations. These include enhancing skills in risk management across an organisation and not solely holding responsibility for risk at the top-end; creating standardised approaches; and ensuring that processes are robust through better documentation, policy and strategy. Caron continued; ‘Today’s CFDG Risk Conference will welcome more than 200 charity professionals that are coming to develop their knowledge and skills further in these areas.’
Professor Paul Palmer, associate dean and director of the Centre for Charity Effectiveness, Cass Business School said; ‘This is timely as we enter a potential ten years of austerity after what has been a sustained period of growth in a benevolent environment. What is most interesting in the report is the extent to which external factors have been identified as a growing risk – in particular government policy.’
Richard Weighell, risk management partner at PKF and one of the authors of the annual Risk Surveys, said; ‘The sector has come a long way over the past 10 years and it is encouraging to see that risk management is now firmly embedded into the psyche of most not-for-profit organisations. But it would be unwise for charities to rest on their laurels. The next year is going to be tough and effective risk management will be essential as charities continue to adapt to the challenging economic environment.’
The full publication is available online: Managing risk in charities: Lessons from the past decade and a look into the future.
Comments
There are no comments on this article. Be the first to comment.