Wo

rks

ho

ps AM5: The board’s role in risk: it’s

all about minimising, right?

Ian Joseph, Chief Executive, Trustees Unlimited

Nigel Kippax, Consultant, NCVO

1. What are the issues your Board is facing that

are asking questions about risk?

2. How would you gauge your Board’s appetite for

risk?

Introductions - Ian

Section 1 - Nigel

Charity Commission

Charities & Risk Management

2. Avoid

3. Mitigate

4. Accept(Insurance)

1. Transfer

Risk strategies

What’s the underlying assumption?

What’s the underlying assumption?

Risk = Bad

Sir Terrance Conran

Control & Innovation

What could be the benefits of Risk?

Board

PerformanceCompliance

The role of the Board

&

Board

PerformanceCompliance

The role of the Board

Limit riskControlProtect

Manage riskInnovateChange

&

What will you leave behind?

Hand Back

“Better”

Hand Back

“Safely”

A Question of Legacy

Sir Clive Woodward

Performance & Fear

Context: The “S” curve

Impact;£

Time

Organisations follow a similar curve as they evolve/grow

Context: The “S” curve

Time

Stagnation?

Growth – High Performance

Initiation – Period of high risk

Impact;£

Group Work 1: Questions

1. How would you know if your organisation

has stagnated?

2. What are the greatest barriers to moving

beyond stagnation?

Section 2 - Ian

Recruiting the right trustees

The Landscape

FWD Charity Research May 2012• Fewer than 12% of trustees are under 45

• Less than a third have been in their post for more than 5 years • 50% charities struggle to recruit (48% top 300)

• Biggest reason is time commitment (46%) and lack of commitment (20%)

Charity Commission Research 2012• Estimate 1m trusteeships

Trustees Unlimited Research November 2012• 20% trustees say their board lacks a diverse range of skills

• 51% believe a more diverse board would enhance their charity’s effectiveness

First Principles

• Are we working well together?

• Mem & Arts – purpose/recruitment e.g. terms

• Engage the whole board

• Skills audit

• Personality audit! Not all risk averse!

Role Description/Person Specification

Outline responsibilities• Legal/fiduciary

Clear on expectations• Time commitment

• When are the board meetings?• Sub committees

Experience/skills sought

Values• Nolan principles/others

The Process

• Create a compelling reason but be honest• Recruitment pack• Options

• DIY – Your own network• Free service – Such as NCVO Board• A little more – TU/Reach/advertising• Blow the budget - Headhunters

• Application process• Interviews• References• Meeting board and seeing the services• Induction!

Tips for improving diversity

• Use alternative recruitment methods – not just word of mouth

• Make use of specialist job boards/ explore advertising on LinkedIn groups

• Organise board meetings at times that are convenient to all

• Have a set policy in place for expenses such as travel and childcare

• Make sure the venue in which you hold your board meetings are accessible

• Have arrangements for sign language or audio, Braille or large print

• Set limits for trustee terms

Summary tips for recruiting

• Conduct an audit of the competencies, knowledge and/or experience • Create a role description

• Engage the whole board in the process• Think about why someone would be interested in coming to you

• Write a punchy advertisement!• Prepare an information pack for candidates

• Use social media to promote your opportunity• Consider using a professional recruitment firm with a track record of

recruiting trustees• Be clear about who is making the decision

• Have a clear process for informal meetings, tours of services and interviews

• Interviews should be evidence and behavioural based• Take references – always verbal

• Have a good induction process in place

Section 3 - Nigel

Board

PerformanceCompliance

The role of the Board

Limit riskControlProtect

Manage riskInnovateChange

&

2. Avoid

3. Mitigate

4. Accept(Insurance)

1. Transfer

Risk strategies

2. Avoid

3. Mitigate

4. Accept(Insurance?)

1. Transfer

The 5th Strategy

5. Embrace

Further growth/impact

The Challenge

Continued stagnation?

Impact;£

Time

Group work 2: Question

What one thing will we do differently as a

result of this session?

Actions to consider

Fresh insight – Facilitated review of the

Board

Recruitment – Fresh faces on the Board

NCVO support Board Reviews

Trustees Unlimited support recruitment

Thank You

Nigel Kippax – NCVO

nigel.kippax@ncvo.org.uk

Ian Joseph – Trustees Unlimited

Ian.joseph@trustees-unlimited.co.uk

Evolve 2014