Tough times prompt most charities to review their strategy

This year's PKF/Charity Finance Directors Group risk survey reveals that almost 90% of organisations are revisiting their strategic direction in the light of the recession, and focus on risk management is on the rise.

Almost two thirds of survey participants have reviewed and updated their strategic direction in light of the economic crisis, and most others plan to do so. For 16%, there has been a significant change to their organisation’s strategy.

42% of respondents also report that the current operating environment has prompted them to think more strategically.

However, only half of those surveyed had taken account of beneficiary needs and priorities in developing their strategy, and fewer have carried out any form of consultation with them.

Just over 40% of organisations featured have used techniques such as scenario planning or benchmarking.

Risk management on the rise

The proportion of charities considering their risk management to be fully embedded and working effectively is at its highest to date at 34%. In 2009 this was 26%.

Top tips

The report also includes some top tips from survey participants on managing risk, including:

•   Think widely and don’t be afraid to be honest about risk. No organisation can be risk-free.
•   Make sure the process is integrated with development of plans to deliver strategy.
•   Start with what you know and work outwards. Don’t try to identify and fix all risks at the first iteration.

Download the Managing Risk Report 2010 or find out more about managing risk and uncertainty.