Annual Report and Financial Statements

Strategic report
How we manage risks and uncertainties
We undertake a continual assessment
of the principal risks facing the
group and are satisfied that adequate
controls and procedures are in place
to mitigate these risks. The Risk,
Audit and Governance Assurance
Committee (RAG) is responsible for
overseeing the approach to risk across
the whole of the charity’s activities.
All risks identified are recorded on the
CHSW Risk Register. The risk is then
scored based on impact and likelihood
in line with the Charity Commission
guidance. Mitigation and controls are
applied with the aim of reducing
the risk (and the score) to an acceptable
level. The scores are prioritised on a
Red, Amber, Green rating and reported
to the Board through the CHSW
Risk Management Framework. The
Senior Management Team review the
Risk Register monthly and the Board
Assurance Committees review the
strategic risks relevant to them at their
scheduled meetings (at least three times
per year). The full Board carry out a full
review of strategic risks annually.
The key red risks identified are:
Pandemic: Risk to Operations.
COVID-19 has had a far greater impact
than anyone could have envisaged,
impacting every aspect of what we
do. CHSW immediately responded by
creating a COVID-19 Response Team,
made up of key personnel from across
the organisation, meeting weekly to
respond to the immediate operational
risks. The full Board met on 12 March
2020 and shortly following, the terms
of reference for a Crisis Assurance
Committee of Trustees was agreed.
This group now meets monthly and is
empowered to make swift decisions
whilst retaining appropriate governance.
Cost of existing and planned services
exceeds income (annual).
Financial modelling identified the need
to generate additional income in excess
of £2m per year over the next five years
to ensure income can cover operational
expenditure reflecting year on year
inflationary costs and the additional cost
associated with service development. This
has been overshadowed by the impact of
the pandemic on our retail and voluntary
income and response plans are now being
developed and implemented to reflect
the CHSW Strategic Review. This is
supported by the Finance, Investment and
Trading Assurance Committee (FIT).
The six main areas of risk identified by
the Board in January 2020 were:
failure to deliver charitable
objectives;
failure to manage safeguarding risks;
damage to reputation;
ineffective governance and leadership;
failure to manage compliance;
failure to manage financial risk.
After a call to the Children Hospice South West helpline, aka the
Care Team, we were able to get great support during lockdown
from members of the team who know our foster son well.
Children’s Hospice South West - Annual Report and Financial Statements for the year ended 31 March 2020
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