How to Assess Risk for Charities Working Internationally

How to Assess Risk for Charities Working Internationally

Charities working internationally may face particular risks due to their operating environment including the application of financial sanctions, greater levels of corruption or criminal activity and the presence of terrorists, proscribed groups or designated entities.

As a risk-led regulator, we focus on areas of higher risk and we expect the same of trustees.

Risk Assessment Tools

The Charity Commissions International Charities Engagement Team, often get asked what does risk assessment mean in practice and how regularly should it be carried out.

With over 168,000 charities registered in England and Wales and approximately 17,000 operating internationally, there isn’t a one size fits all answer to these questions.

There’s no universally recognised criteria for assessing and determining risk and ultimately you must decide what is in the best interest of the charity.

But, they have produced risk management tools which may help you effectively manage risks and protect your charity from harm in Chapter 2 of the Compliance toolkit – Due diligence and Monitoring the end use of funds. It also includes:

• a risk assessment checklist (which highlights key issues to think about)
• a risk assessment matrix (which assesses the likelihood, impact and potential controls)

Recent events in 2019 demonstrate how practical our PESTLE analysis tool can be when assessing the risk arising from a range of external factors, and their impact on a charity working internationally.

To read the full Charity Commission blog click here.

Source: GOV.UK

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