Many charities operate in an uncertain funding environment, with reliance on grants, donations, and contracts. Key considerations include:

• Diversifying income streams to reduce reliance on a single funding source.
• Regular financial forecasting and monitoring to anticipate shortfalls.
• Maintaining adequate reserves and planning for long-term sustainability.

Strong governance ensures that a charity remains legally compliant and effectively managed. Areas to focus on include:

• Ensuring a well-structured board with key officer roles such as Treasurer and Company Secretary.
• Regularly reviewing governance policies and procedures.
• Providing trustee training to strengthen leadership and decision-making.

A clear strategic plan is essential for growth and long-term sustainability. To mitigate strategic risks, charities should:

• Develop a business plan with clear short-, medium-, and long-term goals.
• Regularly review and adapt plans in response to external changes.
• Seek funding or external support where needed to strengthen strategic planning.

Charities must comply with various legal and regulatory requirements. Key areas include:

• Data protection (e.g., GDPR compliance).
• Safeguarding policies and procedures.
• Health and safety regulations.
• Cybersecurity measures, such as obtaining Cyber Essentials accreditation.

Everyday risks can arise from how a charity delivers its services. Managing operational risks involves:

• Conducting regular risk assessments on activities, equipment, and premises.
• Implementing strong policies and procedures to ensure safe and efficient operations.
• Training staff and volunteers to manage risks effectively.

Charities working with vulnerable individuals must prioritise safeguarding. Risk management in this area includes:

• Ensuring safeguarding policies are up to date and effectively implemented.
• Providing safeguarding training for staff, volunteers, and trustees.
• Conducting thorough risk assessments for individuals who may require additional support.

Recruitment, retention, and workforce wellbeing are critical to a charity’s success. Key considerations include:

• Ensuring fair and competitive pay in line with national standards and cost of living.
• Addressing capacity issues by recruiting and retaining skilled staff.
• Providing professional development and support to maintain staff engagement.

Public trust is vital for charities. To protect their reputation, charities should:

• Maintain transparency and accountability in their operations.
• Effectively manage communications and public relations.
• Address issues promptly to prevent reputational damage.

External factors such as policy changes, economic uncertainty, and political developments can impact charities. Risk management in this area involves:

• Staying informed about government policies affecting the voluntary sector.
• Engaging in sector-wide advocacy and partnerships.
• Adapting strategies to respond to external changes