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It is important to remember that, while ultimately all situations that arise as a result of risks have a nancial impact on the charity, it is not enough to simply consider risks that relate to nancial issues or have a nancial impact.
Be methodical about your approach and try and consider all key aspects of your charity’s work. Engage with stakeholders and professional advisors who can help with this process, and maybe see risks that you have not thought about.
WHO SHOULD BE CARRYING OUT THE ANALYSIS?
Ultimate responsibility for developing the risk management policy rests with you as the charity trustees. You are responsible for the management and control of your charity. However, that does not mean that you alone should
be responsible for preparing the policy. It is important to involve all those connected with the charity who may have a valid input, for example senior lay management. Everyone will have a different view as to what may be signi cant in terms of risk. You will also nd that in many cases the way in which you deal with the risks will be delegated to a member of your staff. For example, if you have an internal property manager, they will probably be delegated with the responsibility of arranging insurance on behalf of the charity, so they would be well placed to advise on the likely risks to consider.
If you do not involve others in the process, it is dif cult for you as charity trustees to be able to say, with con dence, that you have considered all the risks faced by the charity and put in place appropriate process and procedures to enable them to be dealt with. There needs to be a commitment to risk management throughout the charity.
Many religious institutes have a hierarchical structure, spread across a number of communities. The risks in some communities may be very different to the risks in other communities. It is important to ensure that there is a complete representation of all interests, so that all risks are considered.
Sometimes it is useful to have a third party, such as one of your professional advisors facilitate a discussion on this subject with the charity trustees and senior management, to ensure that what may seem obvious to an outsider, is at the front of your mind.
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