# Only half of small charities confident in identifying & tackling risk - Link: https://fundraising.co.uk/2018/12/04/half-small-charities-confident-identifying-tackling-risk/ - Published: 2018-12-04T08:45:56+00:00 - Author: Melanie May **Just over half of UK small charities (54%) lack confidence in their ability to manage risk, while 47% say they are only partially confident in their capacity to identify and assess risk, according to a new report.** The report, [_Under the radar: risk management in small charities_](https://www.policybee.co.uk/charity-insurance/charity-report), was commissioned by professional indemnity insurance provider [PolicyBee](https://www.policybee.co.uk/) from the [Suffolk Institute for Social and Economic Research](https://www.uos.ac.uk/content/suffolk-institute-for-social-economic-research) at the University of Suffolk. It_ _also reveals that one in ten small charities ( those with an income under £500,000) say they don’t have or aren’t sure whether they have any risk management measures in place to ensure they achieve their objectives and safeguard funds and assets. The majority (87%) only have one measure in place. Sixty-four per cent of respondents cited a lack of time, followed by a lack of funds( 52%) as the major barriers to putting risk management measures in place, with lack of expertise highlighted by 39%. ## Advertisement In addition, 62% said they had never received risk and governance training, with the biggest hurdles being lack of funding (57%), lack of time (50%) and not knowing where to access training (45%). The report identifies risk to funding as the outright biggest concern for small charities in the next 12 months whether that be external funding, including grants( 70%) or their capacity to generate income streams (74%). The next most pressing risks are their ability to recruit trustees and staff (62%) and then managing the risks associated with them. However, many small charities are not familiar with the organisations that provide risk and governance advice, according to the report. 60% are not very familiar with seven of the main regulatory bodies and umbrella organisations that support charities in the UK, while nearly a third had never contacted their local community foundation. PolicyBee’s Dominique Fell-Clark, who is also founder of [The Women & Girls Fund](https://www.suffolkcf.org.uk/give/give-together/women-and-girls-fund/), said: > “At a time when the charities sector as a whole is under increasing scrutiny, > the lack of funding and resources among small charities is leading to shortfalls > in risk management. This puts many in danger of sleepwalking into a governance > and compliance crisis. > “The requirement for good governance applies equally to charities of all sizes > but external advice can be difficult to access for small charities. Some don’t > know where to go, or that advice is even available. And some don’t have the confidence > to engage. While some organisations may be fortunate enough to have experienced > trustees, many will not, leaving them poorly equipped to identify and deploy the > measures required to protect both the individuals within an organisation and the > organisation itself.” > “We are fortunate in the UK to have a robust infrastructure of professional bodies > for the charities sector as a whole, and we are urging this group to give serious > thought to what their risks are and how they can manage them better.” PolicyBee has launched an online [Charity & Community Help Hub](https://www.policybee.co.uk/charity-insurance/charity-hub?page=1), to point small charities directly to useful information that can help them. It filters the support advice available to deliver a one-stop-shop platform of third-party resources. * **[Five-year Commission inquiry into The Cup Trust concludes trustee responsibility](https://fundraising.co.uk/2019/01/18/five-year-commission-inquiry-cup-trust-concludes-trustee-responsibility/)**( 18 January 2019) * **[21 charities shortlisted for Charity Governance Awards](https://fundraising.co.uk/2019/04/05/21-charities-shortlisted-for-charity-governance-awards/)**( 5 April 2019) * **[Charities championing women’s rights celebrate joint win at Charity Governance Awards](https://fundraising.co.uk/2019/05/23/charities-championing-womens-rights-celebrate-joint-win-at-charity-governance-awards/)**( 23 May 2019) ![Loading](https://fundraising.co.uk/wp-content/plugins/page-views-count/ajax-loader- 2x.gif)