Charities need to take a longer-term view of risk or face increasing threats to their prosperity and security, according to Ecclesiastical Insurance.
Ecclesiastical published its first Charity Risk Barometer this month. The in-depth study explores the immediate and emerging risks facing the charity sector.
The insurer, in conjunction with Third Sector, asked charity leaders about the biggest risks facing them over the short- (12 months), medium- (one to three years) and long-term (five years).
Funding emerged as the biggest concern (54% of charities) over the short- and medium-term, while reputational risk (26%) is seen as the biggest threat to the sector over the long-term.
The impact of Brexit is a major concern for the year ahead, with more than half of charities citing it as a concern, followed closely by growing political instability (38%). Brexit was more of an issue for larger charities and became less important to all charities over the longer-term.
A number of emerging risks include charities’ ability to attract and retain talent, stress-related burnout among staff and engaging with the next generation of supporters.
In these increasingly uncertain times, the report also highlights the need for charities to think more strategically about risk management to ensure their future prosperity.
Angus Roy, charity director at Ecclesiastical Insurance, said: “These are challenging times for the sector—uncertainty is the new norm and new risks are emerging all of the time. It is imperative that charities spend more time thinking about not only the potential rewards, but also the risks they are facing, now and in the future.”