MLHR Risk Management Policy
Introduction
In MLHR we fully understand that there are risks inherent in running an organisation like ours.
We have divided up the risks into the following categories:
The governance risks we face are to do with Board members not living up to their responsibilities; high board turnover; conflict on a board; conflicts of interest not properly managed; an absence of relevant policies; a failure to properly implement agreed policies; and policies not being reviewed. As part of this, there is a risk associated with our governing document not being fit for purpose by not being reviewed annually as MLHR grows and changes.
The way we manage these risks are detailed in our Risk register, but in essence the Board reviews on our Risk register on a bi-annual basis, to ensure not only that we are aware of all the risks and have evaluated them but continue to mitigate them.
We have appointed one Board member as the Risk Monitor.
Strategic
At the start of each year the Board will plan out its strategy and objectives for the year. The risks associated with this are that we will fail to meet them or that costs budgeted for will be allocated incorrectly. Our strategic plan will take these risks into account, as well as unknown risks (like the Covid pandemic or in our case specifically, an increase in unwanted and abandoned animals) that are beyond our control.
As with governance, our Risk Monitor will continually assess all risks associated our Annual Strategic plan and budget. At monthly Board meetings, the progress of our annual strategic plan will be assessed through the reports in from Team leads.
Compliance
MLHR as a charity registered with the Charities regulator, makes every effort towards full compliance with them as well as with Company Law as we are a company limited by guarantee.
The risks associated with this are that we fail to comply with legislation and policies around GDPR, Health and Safety and the Charities governance code.
The Board must at all time ensure that this does not happen, through the review and monitoring of our risk register, as maintained by our Risk Monitor.
In addition all Board members are required to read, understand and familiarise themselves with the Charites Governance Code and all legislation relevant to the operation of MLHR.
Appropriate training in these areas is a requirement for membership of the Board of MLHR.
Operational
As a volunteer led organisation we are heavily dependent on our volunteers, our workaways and a couple of staff members for the running of the three Rescue Centres, our charity shops, our Help Desk, our rehoming teams and welfare teams. A major risk here is that volunteer numbers drop, we can’t find sufficient numbers of workaways or employees are no longer available to work.
These are risks as we look after animals – and we need a constant presence to feed and care for the animals.
We assess and monitor this risk and mitigate it by ensuring that we have volunteers trained in every aspect of our work so that they fill the gaps if they occur.
Financial
Financial risks within MLHR are a failure to meet financial management and reporting requirements; failure to maintain financial reserves; failure to plan to meet future needs; and failure to properly assess and understand the financial viability of the charity.
In terms of funding applications the risks are a misunderstanding of funders requirements (in applications as well as reports) as well as missed deadlines for funding applications are all potential risks for the charity. Our policy, as with all risk, is to mitigate these risks through the Risk Monitor appointed by the Board and to ensure that our Finance Committee and our Fundraising Committee report monthly to the Board meetings, so that regular updates are received.
In MLHR we fully understand that there are risks inherent in running an organisation like ours.
We have divided up the risks into the following categories:
- Governance
- Strategic
- Compliance
- Operational
- Financial
- Environmental
- Reputational
The governance risks we face are to do with Board members not living up to their responsibilities; high board turnover; conflict on a board; conflicts of interest not properly managed; an absence of relevant policies; a failure to properly implement agreed policies; and policies not being reviewed. As part of this, there is a risk associated with our governing document not being fit for purpose by not being reviewed annually as MLHR grows and changes.
The way we manage these risks are detailed in our Risk register, but in essence the Board reviews on our Risk register on a bi-annual basis, to ensure not only that we are aware of all the risks and have evaluated them but continue to mitigate them.
We have appointed one Board member as the Risk Monitor.
Strategic
At the start of each year the Board will plan out its strategy and objectives for the year. The risks associated with this are that we will fail to meet them or that costs budgeted for will be allocated incorrectly. Our strategic plan will take these risks into account, as well as unknown risks (like the Covid pandemic or in our case specifically, an increase in unwanted and abandoned animals) that are beyond our control.
As with governance, our Risk Monitor will continually assess all risks associated our Annual Strategic plan and budget. At monthly Board meetings, the progress of our annual strategic plan will be assessed through the reports in from Team leads.
Compliance
MLHR as a charity registered with the Charities regulator, makes every effort towards full compliance with them as well as with Company Law as we are a company limited by guarantee.
The risks associated with this are that we fail to comply with legislation and policies around GDPR, Health and Safety and the Charities governance code.
The Board must at all time ensure that this does not happen, through the review and monitoring of our risk register, as maintained by our Risk Monitor.
In addition all Board members are required to read, understand and familiarise themselves with the Charites Governance Code and all legislation relevant to the operation of MLHR.
Appropriate training in these areas is a requirement for membership of the Board of MLHR.
Operational
As a volunteer led organisation we are heavily dependent on our volunteers, our workaways and a couple of staff members for the running of the three Rescue Centres, our charity shops, our Help Desk, our rehoming teams and welfare teams. A major risk here is that volunteer numbers drop, we can’t find sufficient numbers of workaways or employees are no longer available to work.
These are risks as we look after animals – and we need a constant presence to feed and care for the animals.
We assess and monitor this risk and mitigate it by ensuring that we have volunteers trained in every aspect of our work so that they fill the gaps if they occur.
Financial
Financial risks within MLHR are a failure to meet financial management and reporting requirements; failure to maintain financial reserves; failure to plan to meet future needs; and failure to properly assess and understand the financial viability of the charity.
In terms of funding applications the risks are a misunderstanding of funders requirements (in applications as well as reports) as well as missed deadlines for funding applications are all potential risks for the charity. Our policy, as with all risk, is to mitigate these risks through the Risk Monitor appointed by the Board and to ensure that our Finance Committee and our Fundraising Committee report monthly to the Board meetings, so that regular updates are received.
