Risk management is a framework for recognising, analysing, understanding and mitigating risks to your organisation in order to improve performance and reduce threats.
Being properly prepared when disaster strikes can make all the difference – and even save lives, says Jay Patel.
An Oxfam worker is one of the tens of thousands killed in the Haiti earthquake this week.
Recent crisp and sunny winter days have reignited my enthusiasm for tackling some good, long mountain bike rides. As I resurrected my trusty cycle from the back of the garage, I was aware that I was about to undertake my own little risk management exercise.
More builders go bust in recessions. Edward Banyard Smith deconstructs the problem.
Ecclesiastical Insurance has issued a warning to charities that operate out of listed buildings that they could be substanitally underinsured and therefore at serious financial risk in the event of a major buildings claim. Research among 80 new charity customers that operate from listed buildings and joined Ecclesiastical during 2009 showed that on average, small charities were 22 per cent underinsured.
David Philpott, chief executive of the London Air Ambulance charity, has been sacked as he was investigating allegations about conflicts of interest and misuse of funds against some of the trustees.
Christian book and bible charity IBS-STL UK is looking to sell all its operations and wind itself up after the implementation of a new IT system went badly wrong and capped off a succession of financial problems. It is the first time in recent history that a top-250 charity has chosen to wind up.
The Charity Commission, in reponse to demand from the sector, has launched an online guide to help trustees protect their charity from terrorist activity.
The RSPCA recently lost a dispute over a legacy left in a will worth more than £2m. The courts instead awarded the money to legator’s daughter. Here, Mark Keenan, one of the lawyers representing the daughter, discusses the finer details of the case, and what it means for charities. Legacies are not always an unqualified blessing for the charities receiving them. In an increasing number of cases, such gifts are becoming subject to challenge by family members who believe that the will does not reflect the true wishes of its maker. The challenge can be made on a number of grounds, such as mental incapacity, or want of knowledge and approval of the gifts made.
The recession has put risk management systems through a severe test, says Richard Weighell. The latest PKF/CFDG annual risk management survey, Managing Risk – keeping in control was carried out between May and June 2009. The number of participants in the survey was the highest yet at 466, and finance directors were very much at the forefront of those submitting the responses.
The charity had ridden into a perfect storm. Three major risks had crystallised at the same time. The charity could cope with any one of these but not all three at once. Two had not been identified on its risk register. The third had been identified but had not been considered to be major.
This morning I needed to drop off an application to the UK Identity and Passport Service. However I had the temerity to arrive at the bewildering set of doors (customer exit, customer entrance and "staff only") holding not just a completed passport application in the correct envelope, but also my dog. I should explain that Ben is not a Rottweiler nor an Alsatian, or any other form of "attack dog". Ben is in fact a rather daft, presently rather woolly, Cocker Spaniel. In fact he resembles a black and grey teddy bear with ridiculous long ears and, happily, a full and woolly tail. I had hoped I might walk through the correct door, step three feet up to the reception desk, hand an envelope to the reception staff and leave. Would that life was so simple!
CFDG has said it is worrying how few charities have a contingency plan for a swine flu outbreak, after finding almost half had no plan in the 2009 Charities Risk Survey it has carried out with accountancy firm PKF. “The UK is now facing a pandemic,” the survey warned, “The adequacy of the arrangements is likely to be tested imminently for a number of charities. It is hoped that they will work.”
There is a real sense that the time has finally arrived when the concept of social investment could really take off. As well as a critical mass of vocal exponents approaching it from different but complementary points of view, there are a number of themes of recent times converging to provide crucial momentum.
The Institute of Fundraising has written to several external stakeholders to ask them to help it set its strategy for the next decade. Chair Paul Amadi (pictured) sent the letter to a selection of “well respected and strategic thinkers” earlier in the summer, with a deadline for responses of this Friday, 4 September.
The risk of personal liability is always a concern for trustees. This article considers ways in which to manage that risk, with a focus on seeking indemnities. Indemnity against liabilities incurred while properly carrying out duties In the case of contractual liabilities, the position can be precarious for trustees of unincorporated charities. If the trustees of a charitable trust want to enter into a contract, they must do so in their own names: a trust does not have legal ‘personality', so cannot contract in its own name. If the contract is in pursuit of the charity's objects and within its powers, the trustees may use the charity's assets to meet any liabilities that arise under the contract.
With funds under pressure, every penny counts. Here are four ideas to help you save money, while reducing risk and improving processes. Cutting recruitment costs I was recruited by Macmillan through an agency. So when I arrived at Macmillan one of my first priorities was to see how the process could be streamlined. I knew there would be scope to improve efficiency and reduce costs. In my previous position at Islington council, I had successfully pioneered the outsourcing of recruitment to a managing company, and I was keen to see how the introduction of a similar system would benefit Macmillan.
The London Metropolitan University fears job losses of up to 800 people if it is forced to repay £36.5m of funding to the Higher Education Funding Council (HEFC). The HEFC has requested the repayment and decided to cut around £10m from the university’s funding indefinitely because the number of students and level of course completion at the university were over-counted, according to Jeremy Corybn, Labour MP for Islington North who led a parliamentary debate on the situation last week.
Raccoons and a paralysing fear of failing What the hell have raccoons got to do with a fear of failing? Well, nothing. At least on face value. But I wanted to write about both today and there is a link. Let me explain. You see, I’ve blogged a lot over the past year about what’s different/ the same about working in the Canadian charity sector and other parts of the world I’ve worked in.
Cardiff Community Housing Association (CCHA) is introducing an online HR system for staff to book annual leave, check their career development and assess risks of particular tasks. Carval Computing has developed a browser through its HR Unity range for CCHA to manage its human resources and training processes for employees.
Trustees can be personally liable if they act imprudently. How do trustees ensure they are prudent without becoming paranoid and risk-averse? Under charity law trustees will put themselves at risk of personal liability only if they:
Nick Hurd, shadow minister for charities, has called for a short-term Treasury loan fund to help charities which face financial difficulty as a result of lost bank deposits.
The Acevo board has agreed to take £20,000 from its reserves to spend on "bolstering services and advice for members facing crisis", according to chief executive Stephen Bubb.
Obama's fundraisers share best practice Last week I attended the DMA Nonprofit Conference in Washington DC. As you can imagine there was a lot of excitement about the presence of Meaghan Burdick, director of marketing, Obama for America, who was delivering the opening keynote presentation. I had to say I was a little sceptical as to how much detail would be shared about the campaign that raised USD600 million.
The Baker Tilly Voluntary Sector Governance Survey of 2008 has some interesting findings on mergers and collaborations
Charities should improve their risk management to enable them to take more risks, according to Charity Finance Directors' Group (CFDG) chief executive Keith Hickey.
A toolkit to hammer out the complex relationship between local authorities and their charities.
The government's war on fun may have reached its climax with last year's smoking ban, but it seems a local council has started a war on buns, by ordering a woman who raises hundreds of pounds selling cakes for charity to treat her activity as a business and take out insurance.
How charity shops are managing risk
Charities have always played an important role in the delivery of those services that we consider to be "public", most notably those of healthcare, leisure, education, and certain emergency services. What should trustees of charities delivering public services be taking into account?