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Revealed: One sector’s biggest risks

Revealed: One sector’s biggest risks | Insurance Business

Revealed: One sector’s biggest risks

Insurance brokers with charity clients can now have an even clearer picture of the risks the sector needs protection against, thanks to Ecclesiastical’s first Charity Risk Barometer.

The study examined the top risks being faced by charities – from the short-term ones all the way to those likely to have an impact in the next half decade. Here’s what Ecclesiastical, which insures more than 45,000 charities in the UK, found:

 

Short-term (12 months)                                                         

Medium-term (one to three years)

Long-term (five years)

Loss of funding 54%

Loss of funding 29%

Reputational risk 26%

Impact of Brexit 51%

Threat of cyberattack 26%

Loss of funding 24%

Attracting and retaining talent 43%

Attracting and retaining talent 25%

Inability to engage with the next generation of supporters 22%

Breaching data regulations 41%

Employees suffering stress-related burnout 24%

Attracting and retaining talent 18%

Political instability 38%

Reputational risk 23%

Threat of cyberattack 18%

Threat of cyberattack 38%

Inability to engage with the next generation of supporters 23%

Increased focus on governance 16%


“These are challenging times for the sector – uncertainty is the new norm and new risks are emerging all of the time,” stated the insurer’s charity director Angus Roy. “It is imperative that charities spend more time thinking about not only the potential rewards, but also the risks they are facing, now and in the future.

“As a specialist partner to the charity sector, our role is to help customers manage their risks, and our research shows that too many charities are taking a short-term view, which may be limiting their ability to grasp new opportunities and identify emerging threats.”

Roy stressed that insurance brokers have an important role to play in supporting charities when it comes to understanding and managing their risks. “We hope this new report will provide invaluable insight for them,” he said.

The in-depth report is available on Ecclesiastical’s website at no cost.