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ARE THERE ANY PARTICULAR CATEGORIES OF RISK WE SHOULD CONSIDER?
Broadly speaking the risks considered for religious institute charities should fall into the following areas (this list is not by any means exhaustive):
AREA
EXAMPLES
MISSION
Potential risks include: activities outside of the objects of the charity, lack of members to control strategic direction of the charity, lay staff/volunteers now aware of the ethos
GOVERNANCE
Potential risks include: charity trustees lack appropriate skills, con icts of interest between interests of the religious institute and the interests of the charity, ineffective organisational structure, monitoring activities within communities
OPERATIONAL
Potential risks include: communities not following rules set by charity trustees, premises unsuitable for elderly members, dangerous, unsafe and dilapidated buildings, reputational issues, failure to be aware of changing legislative requirements, failure to comply with data protection issues
SAFEGUARDING
Potential risks include: changes in government policy, abuse or safeguarding issues, supervision and due diligence checks on volunteers
FINANCIAL
Potential risks include: poor accounting and budgeting, decisions based on inadequate nancial information, over dependancy on particular income sources, diminishing sources of income, changing international nancial markets, increasing nancial demands of members, lack of adequate reserves, fraud and/or unauthorised access to nancial systems, supervision of communities’ nances
In each case your charity needs to consider what is appropriate to your own circumstances. It may be good to consider the risks you have seen emerge in the past one, three, ve and 10 years, and consider how relevant these are going forward.
194 Chapter 10