Invariably the overriding objective of your Trust will be the preservation or restoration of a heritage asset. This aim at some point may require an application for funding. With many competing bids the ability to evidence your own organisation’s resilience could be a deciding factor.
The topic of risk management covers many areas and is very subjective. This article will highlight the main themes and point you towards freely available resources.
The whole concept of risk management for your organisation is simply to identify anything that could prevent your organisation from achieving its stated aims, agreeing a process to monitor and manage any such risks and finally transferring risks that the charity does not wish to carry over to an insurer. The process should involve three stages:
- Assess
- Mitigate/Manage
- Transfer
It can be useful to consider three key areas for your organisation:
- Your people
- Your assets
- Your reputation
Types of risk
The governing document for any trust along with any lease agreement for any assets taken on will be a good starting point to understand exactly what your obligations are. As you go through the process of assessing risk this should always be against the backdrop of your stated aims, the protection of your people and your reputation.
Risks your organisation could face:
- Injury to the public at your heritage asset or fundraising events
- Loss of funds through inappropriate financial decision
- Regulatory changes
- Personal liability for discrimination
- Underinsurance of your assets risking restricted funds following a claim
- Fraud/fundraising