The latest Grant Thornton Australia and New Zealand Not for Profit sector report has revealed that over a third of organisations surveyed do not have a risk management plan in place.
According to the report, Australian organisations were more likely to have a plan (73per cent) than those in New Zealand (45per cent).
“Organisations that don’t have a risk management plan in place need to be aware that recovery from a risk-related event can be difficult”, says Brent Kennerley, Partner and Head of Not Profit at Grant Thornton New Zealand.
“For example, many organisations provide care or counselling services that require the maintenance of detailed client history files, while others obtain credit card information when they receive donations.
“Identity theft and fraud is materialising rapidly and more often in today’s business environment; the risks associated with storing this information and the legislative penalties and potential reputational damage from failing to protect it are severe.
“Another major concern identified in the report is how infrequently disaster recovery or business continuity plans are updated, tested for compliance and circulated to staff.
“While there’s room for improvement in these areas, there are some positives. Of the organisations that do have a risk management plan in place, over 70 per cent both monitor and report their risks at least quarterly.
“It’s also encouraging to see that survey participants identified strategic and operational risks as areas that require a lot of attention.
“The survey results demonstrate that NFPs are starting to recognise the importance of identifying risks so they can develop appropriate strategies for implementation into the day to day management of their organisations; this can improve their chances of long term survival,” says Kennerley.
Grant Thornton’s report, The Challenge of Change, can be viewed here.