Annual report 2015-16 Annual report 2015-16 | Page 39

actiononhearingloss.org.uk 39 Risks and uncertainties The Trustees continue to support a formal risk management process to assess business risks and implement risk management strategies through regular review and oversight by the Audit Committee. This has involved identifying the types of risks faced by Action on Hearing Loss, prioritising them in terms of potential impact and likelihood of occurrence and then identifying and implementing mitigation steps. We continue to measure the impact of any potential risk by considering our free reserve position rather than income. Strategic risk identification and oversight this year has focused on continued, careful management of our financial position, improved regulatory reporting meeting changing requirements, further progress with the development of our Commercial Services Group strategy, and monitoring and modifying approaches to fundraising to meet changing regulations and expectations. Action on Hearing Loss has a clear policy in relation to its strategic risk appetite being risk averse in terms of financial management and risk-taking in terms of supporting the aims of our beneficiaries. We are actively monitoring the risks and uncertainties arising from exiting the European Union through our Audit Committee. We are consulting various sector groups to identify any emerging risks, threats and opportunities. Currently no material change is noted from our risk analysis. As Trustees we recognise there remain uncertainties that could affect our risk-mitigation strategy through uncontrollable, external factors such as government policy, external focus on the charity sector fundraising profile and the wider economic conditions.