VSO 2021-22 Annual Report

Principal risks and
uncertainties
VSO’s work towards a fair world for everyone is inherently
risky. This risk is part of our work, especially in fragile and
conflict-prone countries and with our model of working
with partners and a range of volunteers. Our trustees
recognise that the acceptance and management of risk is
necessary to achieve our objectives and have put in place
appropriate systems and processes to manage risks.
Over the last year, we continued to face
considerable financial risk from the UK
government’s decision to reduce funding for
Overseas Development Assistance. However, the
renewal of our accountable grant funding for
three years from 2022/23, although at reduced
levels, ensures that the strong and longstanding
strategic relationship with the FCDO continues.
The impact of the COVID-19 pandemic also
continued to affect VSO operations. It changed
the operating environment for our work and
affected many of our donors. However, our
distributed leadership model and the high degree
of organisational comfort in online and remote
working ensured that we were able to maintain
our operations throughout the pandemic. Our
long-term strategy continues to be to maximise
the adaptability of our operating model.
Through good strategic management and a
long-standing focus on sustainability, VSO has
the financial reserves in place to help it withstand
shocks such as the pandemic. We also have an
operating culture that allows us to respond and
adapt quickly. This is demonstrated by the way
we continued to respond to the global pandemic
during the year. We will continue to adapt and
manage resources carefully, particularly our
unrestricted spend, to enable us to deliver our
mission for the longer-term.
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