SALAMAT Charity Organisation
Risk Management Measures
Risk Management Measures
Risk is the uncertainty surrounding events and their outcomes that may have a significant impact, either enhancing or inhibiting a charity from achieving its charitable purposes. It should be considered within the wider environment in which the charity operates; financial climate, society and its attitudes, the natural environment and changes in the law, technology and knowledge. It may help to categories risks, for example as:
- Governance
- Operational
- Financial
- External
- Compliance
Understanding how small charities identify, assess and mitigate risks can make a real difference to their longevity and sustainability as it highlights the extent to which different types of risk are dealt with in these organizations.
- Recruiting volunteers
- Damage to reputation
- A decline in funding and donations
- Data loss
- Fraud
1. Recruiting Volunteers
1.1. Promoting the role
1.2. Background checks
1.3. Inductions and training
1.4. Insurance
1.5. Ongoing volunteer risk management
1.6. Damage to reputation
1.7. A decline in funding and donations
1.8. Loss of data
1.9. Fraud
2. A three-step guide to risk management for trustees
Step 2.1. Allocate responsibilities to individuals
Step 2.2 Identify the risks
Step 2.3. Insuring against the unforeseen
SALAMAT understand that insurance plays a big part when evaluating risk assessment; some risks are insurable but others are not. For example, insurance is available for injury claims at public events, but not for ‘trade risks’ such as lack of ticket sales due to inadequate promotion. Some areas of insurance which SALAMAT work on and trying to cover are the following

- Professional indemnity insurance can protect against allegations of negligent advice.
- Trustee liability insurance can protect against allegations of wrongdoing by trustees.
- Public liability insurance can cover against injuries and illness suffered by members of the public.
- Employers’ liability insurancecan protect against injuries and illness suffered by employees (and usually volunteers).
- Fidelity cover can protect against loss of money or goods arising from fraudulent acts by employees.
3. The Charity Commission and risk management
4. Risk register
- Owned by the Chief Executive and senior management team;
- Overseen by the trustees, and monitored by the senior staff (all significant risks) and Board of trustees (major risks). format
