Financial Risks for NFPs: Checklist and Quick Tips

The risks faced by Not For Profit (NFP) organisations come in many different forms.  It is the responsibility of your allocated risk manager or risk management committee to look for the processes within your organisation that could cause harm, asking the question “does this task/activity/situation/event have the potential to harm people, property, income or organisational goodwill?”.

Financial risks are one of the key areas that concern Community Underwriting clients.  Here is a quick checklist to get you thinking about the financial risks that may be faced by your organisation:

Once you have identified your risks, you can then move on to evaluate them in order of priority and implement processes to avoid them, manage them or insure against them.

The Australian Charities and Not-for-profits Commission (ACNC) website also provides some interesting Quick Tips for Basic Financial Controls to put in place for your community organisation, to ensure it runs effectively and can meet its debts. Click here to view the ACNC’s Quick Tips.