How do I go about categorising risks?
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How do I go about categorising risks?
Example question and answer provided by panel member, Julie Mutton, partner at Smith & Williamson – Nov 2012
Think about the different areas that are important to the charity. For example:
- Financial
- Funding is significantly reduced making the charity unable to operate
- Trustees receive inadequate information, leading to inappropriate strategic decisions
- Operational
- A breach of law or regulations causing the enforced closure of an activity
- Shortage of appropriate personnel leading to a deterioration in standards and damage to reputation, resulting in reduced funding
- Governance
- Inability to recruit trustees with appropriate skills causing poor strategic decision-making
- External
- Changes in government policy potentially reducing demand for the charity’s services