Section 4: Security and risk management
Growth, security and risk management continue to be challenging and most of our respondents note one of the major concerns is also staff turnover in relation to managing different types of risk.
On a positive note, an overwhelming number of respondents noted confidence in their organization’s ability to manage risk whether it be operationally data risk, staff turnover, IT security or fraud. In our 2018 survey, about two-in-three respondents felt very confident that their organization was managing risk effectively and with growth. This year’s survey as well as the previous research results do underscore the planning and need to have an effective and flexible risk management program in place. This is also highlighted by the 2020 pandemic setback which is still being felt in 2021, in regard to technology and at-home work versus in-office access.
Results also show confidence in organizations being proactive about mitigating risks that may put an organization at risk for fraud. We also must note that 14% of the respondents noted a concern that the company might put their technology at risk even though they believe overall the organization is educated about risk.
While the vast majority have confidence in their organization’s ability to manage different types of risk, the margin is smaller for staff turnover risk.
Fraud is always on the rise, whether for profit or not for profit entities, but 60% of accounting professionals at nonprofits believe their organization puts significant effort into preventing financial fraud.
In addition, 63% participants believe their accounting and operations management teams are very educated on how to avoid fraud.
Despite this, 59% believe their organizations sometimes undertake actions that put them at risk for fraud to occur – with 14% saying they definitely believe their organization is at risk.
Important to note, even if your organization is at risk, the opportunity is to improve going into 2021. With an increase in grants and funding, along with staff changes to remote work, organizations are in a good position to adapt quickly and sustain stability.
