Financial Security and Risk Management

A recent report from the Association of Chartered Certified Accountants (ACCA), the global body for professional accountants, points to the increasing need for businesses to work harder to spread responsibility for risk management thru-out the entire organization.

The survey of over 2,000 ACCA members found accountants on the front-line of businesses have a vital role to play in successful risk management. Its release comes at a critical time for risk management in the wake of the financial crisis.

Certainly the accounting world is under hyper supervision these days as company business forecasts, profit and loss and adjusted earnings statements are and can be manipulated to reveal differing information to their investors.

The same issues and lessons can be shared and learned thru-out the non-profit world, as ministry and church financial record keeping and disclosure statements undergo deeper scrutiny. How does your church monitor and protect your risk exposure in these areas?

A couple of simple steps can go a long way;

Duplication of effort- does your financial team have several pairs of eyes on critical accounting practices, check writing and bank statement review?

  • Professional training- is your accounting department attending regular IRS, State and Federal tax code training and staying abreast of all new regulations?
  • Budgetary Disclosure- does your church post and make available your yearly budget and regular giving and overall expense updates?

As is the case with most sensitive issues within the church or your ministry walls, openness and complete transparency can go a long way to eliminating any concerns or risk exposure for your team.

Risk Management Insurance, Ministry Insurance

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