Areas of risk
It is very important that you consider your own organisation and its particular services, its uniqueness and the risks that are associated with it. We cannot produce a list of all the risks that would cover every organisation. The following are just a few pointers.
- Are you up-to-date with the regulations?
- Do you have accurate, up-to-date book-keeping? Are all invoices and funder records properly filed?
- Are there too many cash payments?
- Can expenditure be tracked to restricted funds and are the requirements of funders being met?
- Are funders monitoring returns being sent in on time?
- Are funders’ outputs being achieved?
- Is there sufficient cashflow?
- Is the organisation collecting in all the money it is entitled to?
- When will the funding streams end?
- Is a finance report circulated to the trustees and does it analyse income and expenditure against the budget and show variances?
- Are there adequate controls to reduce the risk of theft and fraud?
- Do you need fidelity bond insurance (covers theft by staff)?
- Do you need trustee liability insurance – particularly suitable for unincorporated organisations?
- Will all the preparation for audit or independent examination be completed on time?
- Do you have and review a set of financial controls and procedures?
- Are you paying too much? Do you review suppliers on a regular basis?
- Are goods of the right quality and do they arrive?
- Should contractors be PAYE employees?
- Are there approved limits on purchasing? Could the director buy a new car?
- Is there a staff/trustee code of conduct regarding matters like payments to family members etc?
Services/products for clients
- Specific legal requirements.
- Quality and accuracy.
- Risks to clients.
- Risks from clients.
- Staff training.
- Costs and competition.
- Level of demand – can you meet it.
- Insurance – read the policy exclusions.
- Health and safety.
- False allegations.
- Equal opportunities.
- Promotion and marketing.
- Sourcing of supplies and trained staff.
- Does the manager have a good support system with access to solicitors, accountants, reference manuals and helplines when needed?
- Recruitment procedures.
- Checks and references on new staff.
- Supervision and annual appraisal – do they happen and are they of good quality?
- Other equipment.
- Health and safety.
- Insurance policies.
- Policies and procedures.
- Environment issues.
- Governance and trustees.
- Legal issues.
Parts of this factsheet has been inspired by Managing Risk by Caroline Clark, published by NCVO £15.00 (020 7713 6161).
Last updated: Mon, Mar 31 2008 - 03:55:02 PM
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