40
Annual Report and Financial Statements 2015–16
Strategic risk identification and mitigation is summarised as:
Risk
Mitigation
Financial risk which includes:
•
A detailed approach is taken to
budget setting with the development
of financial plans that are reviewed and
approved by the Board of Trustees.
Regular, detailed financial monitoring
is carried out during the year and
quarterly re-forecasts are prepared.
Actions are taken to mitigate against
budget-income pressures, including
effective cost-management measures.
•
Regular monitoring of the impacts of
austerity measures emanating from
local authority and central government
expenditure, mitigating associated
risks by improving efficiencies and,
where necessary, considering the
long-term viability of service delivery.
•
Implementing a new Commercial
Services strategy and reviewing our
fundraising strategies to maximise our
unrestricted-income streams.
•
Continuing to invest in diverse incomegenerating strategies to maintain and
grow unrestricted income.
•
Effective management of our pension
fund obligations and continued,
positive engagement with the Pension
Scheme Trustees.
•
Monitoring and reviewing our
investment strategy and its
performance managed by appointed
external fund managers.
•
not meeting our targets for
unrestricted income
•
loss of, or reduction of funding streams
•
uncontrolled expenditure
•
our free reserve position falling
below the parameters set by the
reserves policy.
These risks would reduce our capacity to
deliver our strategy.