Charity trustees should regularly review and assess the risks faced by their charity in all areas of its work and plan for the management of those risks. Risk is an everyday part of charitable activity and managing it effectively is essential if the trustees are to achieve their key objectives and safeguard their charity’s funds and assets.
This guidance outlines the basic principles and strategies that can be applied to help charities manage their risks. It should help trustees set a risk framework that allows them to:
identify the major risks that apply to their charity
make decisions about how to respond to the risks they face
make an appropriate statement regarding risk management in their annual report
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