| Recruiting
qualified staff and trustees, pension deficits and full cost
recovery pose the biggest financial threats to charities,
according to PKF’s fifth annual risk management research.
To deal with these risks, the survey Managing Risk
– Working with Others, produced in association
with CFDG, found that over 90% of those questioned had taken
some steps towards risk management. These included implementing
risk policies, risk registers, business continuity plans
and control assurance. However, less than 20% had all of
these in place.
Commenting on the findings, Keith Hickey, chief executive
of CFDG said: “Charities are moving in the right direction
but the PKF report shows that more still needs to be done
to minimise the risks the sector faces. Most larger charities
have the people and resources to deal with risk but smaller
charities are often more vulnerable to the range of threats
that they face. We will continue to raise the issue among
our members and highlight examples of best practice so that
they can learn from each other but charities have to accept
that this is an ongoing issue in need of continuous review.”
Meanwhile, new research from Volunteering England has found
that fear of litigation and excessive risk management has
become a real barrier to volunteering. The organisation
is calling for excessive risk management to be challenged
as it is stopping potential volunteers from coming forward,
with over one million volunteers having considered stopping
volunteering through fear of legal action.
This is supported by Girlguiding UK which currently has
a shortfall of 8,000 volunteers. Head of guiding development,
Jennie Lamb, said: “A large number of organisations
and groups are affected when ‘over the top’
decisions are made [and] we see a need to challenge excessive
risk management. For example when a local authority decides
it’s not safe for children on school residentials
to light fires. It isn’t long before our volunteer
leaders feel that this activity must be too risky and remove
it from their programme. It takes a very confident volunteer
to continue to offer something a local authority has banned
or restricted in some way.”
The Volunteering England report On the Safe Side
can be downloaded from www.volunteering.org.uk
For the PKF report, email janette.obyrne@uk.pkf.com
|