Financial Risk Management
Taking steps to minimise financial risk runs through every aspect of financial management – from planning, budgeting and daily financial operations to monitoring and evaluating the station’s financial management processes.
Risk management identifies what could go wrong and the financial impact this would have on the station’s operations, and then devising strategies to minimise the impact the risk would have if it materialised.
The Community Media Training Organisation (CMTO) have developed the following resources to help your station understand and minimise risk.
Risk Management - Budgeting Info Sheet
Budgeting and forecasting are the future financial plan of the station and play an important role in maintaining financial stability and establishing reserves for station improvements or equipment.
Risk Management - Monitoring Info Sheet
Learn how to plan for contingencies and monitor your budgets and progress.
Risk Management - Financial Health Info Sheet
Even if the treasurer is not one of the board members, there are some important issues regarding financial management which the whole board should understand. Everyone should be involved in the different stages of establishing and monitoring the financial health of the station.
Most importantly, if the station is insolvent and cannot pay its bills, it is illegal for the board to carry on business.
Risk Management - Funding Sources Info Sheet
Learn how to minimise risk in sponsorship, donations, membership, subscriptions, radiothons and fundraising events.
Risk Management - Systems Info Sheet
Accounting records used to be maintained manually but most organisations now use a computerised accounting system. Most stations will have some form of accounting software such as MYOB or Quickbooks. In more recent years, not-for-profits have also started using another accounts system by Calxa because its reports are easy to read and suited to not-for-profits' needs. Get more information on systems in this info sheet.