Managing in uncertainty
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The document emphasizes the importance of managing risk and uncertainty for organizations, advocating for strategic thinking and scenario planning to adapt to changing conditions. It highlights the necessity of recognizing missed opportunities, improving governance, and fostering collaboration while addressing potential funding trends and regulatory demands. Overall, it advises on maintaining relevance and agility in an evolving landscape.
Managing in uncertainty
- 1. Audit | Tax | Advisory Managing in uncertainty Pesh Framjee – Head of Not for Profits Crowe Clark Whitehill
- 2. Manage the present Create the future Boxes - Boxes - Boxes Selectively abandon the past The one constant is change the status quo is not really an option
- 3. Known and unknown Too much conjecture and crystal ball gazing on all the downside risks. The reality is that we do not know what the reality will be But it is important to be prepared and think carefully of the implications on your organisations
- 4. Managing Risk and uncertainty What is the level of exposure to uncertainties that ACORD must understand and effectively manage as it achieves its objectives and creates value Change issues need to be addressed Remember that risk aversion can lead to missed opportunities You must consider both opportunities and threats No action is not really the best option
- 5. Managing the understanding Look beyond the obvious - consider both direct and indirect and short and long term implications
- 6. Identify Options Response Early thinking stage Making strategic choices Taking action • Monitor and evaluate • Change management • People and culture • Nimble and flexible • Forward thinking • Knowledge not data • Lessons learned • SWOTs and PESTs • Structures and Models • Scenarios and forecasts • Warning signs / alerts • Identifying anomalies • Analysis and interpretation • The right people • Key uncertainties • Direct and indirect • Short and long term • Risk and opportunities • Peers and partners • Competitors Managing Brexit Organisational, sector, national and international context Do you have the right people doing the right thing in the right place at the right time
- 7. Strategic thinking The strategy must be able to deal with uncertainty Predicting the probable is difficult Tactics have to be developed on the premise that several different outcomes are possible. the task of setting priorities remain as difficult as ever, matching the demands to satisfy short term needs against pressure for the resources required to achieve long term solutions.
- 8. Scenario planning Scenarios are not forecasts Avoid being too simplistic Monitor and build in triggers for action Requires many perspectives Engage with a diverse team across functions The aim of a successful scenario planning process is not whether it accurately predicts the future but rather that it should enable the organisation to learn, adapt and take effective and timely action by preparing it for what might happen in the future
- 9. Some funding / financing trends • Prefinancing • Contracts/Payment by results • Venture philanthropy • Corporate partnerships • Impact investing • Lending • Social impact bonds
- 10. Looking ahead Even more scrutiny and regulation Greater demands for transparency and accountability Consequences of changing funding environment More strategic alliances and greater collaboration Improved cost effectiveness and an understanding of cost base
- 11. Some questions How do we remain relevant and coherent Does strategy need to change? Are structures fit for purpose? What is the impact on budgets and forecasts? How will our reserves and cash management be impacted? How do we stay on track? What about operating frameworks? What are the skills and competencies that are required and How does the board and management need to respond
- 12. So what are others doing? Recognise that status quo is not a valid option Improve – the management of knowledge, performance and risk Look for missed opportunities Broaden the income base Revisiting governance structures – nimble and agile Collaborative working, strategic alliances and mergers Revisiting strategy
- 13. Lasting change
- 14. Further information Pesh Framjee Head of Non Profits Crowe Clark Whitehill St Bride’s House 10 Salisbury Square London EC4Y 8EH Pesh.framjee@crowecw.co.uk
- 15. @crowecw Follow us on: Crowe Clark Whitehill LLP is a member of Crowe Horwath International, a Swiss verein (Crowe Horwath). Each member firm of Crowe Horwath is a separate and independent legal entity. Crowe Clark Whitehill LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath or any other member of Crowe Horwath and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath or any other Crowe Horwath member. © 2014 Crowe Clark Whitehill LLP This material is for informational purposes only and should not be construed as financial or legal advice. Please seek guidance specific to your organisation from qualified advisors in your jurisdiction. Crowe Clark Whitehill LLP is registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales and is authorised and regulated by the Financial Conduct Authority.