For Charities, Digital Offers Both Opportunity And Risk

But there is a wealth of guidance available to help

The Charity Governance Code points out that good governance is fundamental to the success of charities and promotes a healthy culture from within. Alongside this, as charities face income and other resource pressures plus a challenging operational environment, they need to make the best possible use of the opportunities that digital communications offer - in their governance and operational activities but also in developing and strengthening relationships with their stakeholders. Digital technology can and does enable charities to have a better and further reach into places of need.

However, charities are not immune from the challenges and risks of the digital world. Across all sectors, the National Crime Agency reports that cyber crimes now outnumber physical crimes. The Information Commissioner's Office figures for April 2016-17 demonstrate a two-thirds annual increase in the number of charities experiencing a data breach incident.

Key areas of digital and cyber risk for charities are:

Effective protection of those with vulnerabilities to exploitation, abuse and other forms of harm Avoiding dangers to financial stability, funds Risks to reputation and risks of damage to the confidence and trust in charities of their beneficiaries, other stakeholders and the wider public. Risk management

Risk is an inevitable reality in a charity's activities and digital risk is a growing proportion of any charity's risk profile.

Managing such risk effectively is an essential part of the good stewardship required of charity trustees and a key part of their governance responsibilities.

As the Charity Commission points out in CC26 'Charities and Risk Management': 'Charity trustees should regularly review and assess the risks faced by their charity in all areas of its work and plan for the management of those risks'.

Particular focus is needed on major risks - those that would have a probability of occurring and would have a major impact if they did become reality. Most forms of cyber risk fall within this definition of major risk, so it is an area that deserves sufficient board-level attention.

The Charity Governance Code's fourth principle highlights this, encouraging all boards to ensure that controls and risk assessments are robust and effective.

Board skills gaps

In recent research, 'Taken on Trust: The awareness and effectiveness of charity trustees in England and Wales', a lack of relevant digital...