Respondents to our new PPB Not-for-Profit Risk Survey were asked if their organisation takes into account a number of different risks, including fraud. Where did fraud rank?
58% of organisations stated that they considered fraud was a risk to their organisation. However, fraud ranked 7th. The order of risks was as follows:
Financial Risk - 89%
Compliance Risk - 77%
Public Liability Risk - 71%
Human Risks - 69%
Security Risk - 65%
Project Risk - 64%
Fraud Risk - 58%
Technological Risk - 56%
Financial literacy of key staff - 46%
Natural hazard / disaster risks - 46%
Risk of Insolvency - 43%
While 58% of respondents take into account fraud as a risk, it was interesting to note that while 89% of organisations consider financial risk, just under half (43%) consider the risk of insolvency.
Hi Lisa,
ReplyDeleteIn your opinion would the order of these risks change if we were in a different part of the economic cycle?
Also, I would tend to think many businesses would call Financial Risk and Insolvency Risk the same thing.
David Buley
Hi David
ReplyDeleteI think Financial Risk may drop down the list a bit if economic conditions were better. But I think things like compliance risk and public liaibility would stay fairly high.
I take Insolvency Risk to be the worst side of Financial Risk - but yes I do agree that it is part of Financial Risk.
Regards
Lisa