I am a Trustee for a small charity that specialises in providing education opportunities in connection with Farming Food and the Environment. One of the key accountabilities of the Trustee is the ability to show the Charity Commissioners that they are managing the risks to the business in a professional manner and with due diligence. Our risk register is divided up into a number of categories under which are listed the risks to the business for that heading. For example, under the heading of “Assets and Site” we perceive the risks to include a) flooding b) building maintenance c) timely delivery of capital investment programme. Each of these headings is then rated for potential impact (high, medium, low) and the likelihood of this which then gives an overall rating. In light of the wet autumn and winter we probably need to add something about soils and drainage and the risk of delayed turnout.
Whilst for charities being able to deliver their charitable objectives is of primary importance, the risks facing businesses are often similar. The other areas that need to be included in the review include staff and key people, financial performance both short and long term, compliance with the range of regulations that impact the business, suppliers and partners. For livestock businesses the risk associated with a disease outbreak should be included.
Unfortunately, many of us have first-hand experience of a failed TB test or an outbreak of Foot and Mouth where the consequences can be very significant and whilst most businesses manage to survive, the unexpected event is very stressful. Undoubtedly prior planning would have helped to mitigate the impact of the risks.
If you would like help in preparing a risk register for your business please contact William at email@example.com, or your local FCG consultant.