 Review of 10 years of risk management published at charity sector conference
1 February 2012: ‘Managing risk in charities: Lessons from the past decade and a look into the future’ was published yesterday at CFDG’s Risk Conference 2012. Based on research by two researchers from Cass Business School, Paul Bennett and Tim Gage, this paper explores themes in the development of risk management in the sector and makes recommendations for improving practice. Click here to download the report.
The research was based on 10 years of findings from the PKF/CFDG Risk Surveys, focus groups with senior finance professionals in the sector and interviews with a case study identified as demonstrating good practice.
Richard Weighell, risk management partner at PKF and one of the authors of the annual Risk Surveys, said: “The sector has comes 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.”
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, with 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 this area.”
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.”
Ends
For further information, please contact: Andy Konieczko, 020 7065 0537, andrew.konieczko@uk.pkf.com
Notes to Editors:
1. PKF (UK) LLP is a leading firm of accountants and business advisers with more than 1,500 partners and staff operating in 23 offices in the UK mainland firm, incorporating a wholly-owned financial planning company and associated offshore practices. The firm specialises in advising growing and entrepreneurial/owner-managed businesses, AIM and fully listed companies, and also has extensive experience in the public and not-for-profit sectors. Principal services include assurance and advisory; taxation; consultancy; corporate recovery and insolvency; corporate finance and forensic. The firm has particular expertise in advising sectors such as hotels and leisure; mining and resource; public sector; real estate and construction; professional practices; not-for-profit; and medical. The firm’s web site is www.pkf.co.uk
2. PKF (UK) LLP also offers financial services through its FSA authorised company, PKF Financial Planning Limited. PKF (Isle of Man) LLC is a limited liability company registered in the Isle of Man. PKF (Channel Islands) Limited is incorporated in Guernsey.
3. PKF (UK) LLP is a member firm of the PKF International Limited (PKFI) network of legally independent member firms. The PKFI member firms have around 2,200 partners and more than 21,000 staff in around 125 countries.
4. CFDG is the charity that promotes best practice in charity finance management, supporting finance managers with conferences, training and a wealth of web-based information. CFDG is also active in the policy arena, working on issues that affect charity finances. CFDG’s circa 1700 members are responsible for the finances of charities with a wide variety of income levels. Between them our members manage some £21.75 billion in charity income per year, around half of the sector’s income.
|