THE majority of respondents to independent strategic advisory firm PPB’s inaugural survey into risk management in the not-for-profit sector consider risk management as being ‘highly important’.
The survey looked at 291 organisations’ policy and cultural considerations, as well as practical risk management considerations such as: how risks are determined and monitored within organisations; ownership and accountability for the risk process; and the types of risk that the sector is dealing with.
In all, 70 per cent of respondents place a ‘high’ to ‘very high’ level of importance on effective risk management practice and its effect on the organisation achieving its objectives.
“This result clearly shows that the links between effective risk management and organisational outcomes is very well embedded into the culture of most participants in the not-for-profit sector,” PPB said.
PPB found that, as a general proposition, the higher the revenue attached to the organisation, the greater the perceived levels of awareness in relation to risk management practice is within the organisation.
This occurred because the larger an organisation is, the more sophisticated practices they have in place and the harsher their self-rating would be, according to PPB.
