Charities slow to embrace risk management
Charities are embracing risk management but need to speed up the pace of change, a new study has found.
Almost half the 350 charities polled in a survey by mid-tier firm PKF and the Charity Finance Directors’ Group had followed formal risk management procedures during the last year, but only 9% had done so for more than two years.
Only 8% had yet to begin any formal risk assessment, while just 56% of charities report to trustees more than once a year.
Charles Cox, PKF head of charities, said: ‘The biggest challenge is going to be getting everyone involved in each organisation to change the way they think so that risk considerations become as intrinsic to decision-making as financial consequences.’