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Volunteer Board Member Responsibilities
and Risk Awareness |
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Dear Financial Leader,
Many AICPA members serving in business and industry work in or volunteer for not-for-profit organizations and bring these entities a high level of professional excellence. As a volunteer board member or as management, you have a direct responsibility to protect and support not-for-profit organization missions and objectives. To help you accomplish these goals, I want to inform you of a new Not-For-Profit Brief, Increasing Risk Awareness for Mission Critical Objectives of Not-for-Profit Organizations.
Calls for governance reform in for-profit entities and the Dodd-Frank Act brought new requirements to disclose a board’s role in risk oversight and, for very large entities, establish risk oversight committees with at least one risk management expert. “Not-for-profits are not immune to risks as they seek to accomplish their mission and vision, especially in light of the impact the tough economy is having on donations and endowments and threats to significantly reduced government grant programs and cuts in funding as governments tighten their belts significantly.” This Brief captures the essence of how to begin and carry out similar risk oversight in not-for-profit organizations by:
- Developing an Enterprise View of Risks
- Creating Explicit Focus on Emerging External Strategic Risks
- Linking Mission Critical Strategies to Key Risks
The AICPA has developed additional resources to help guide not-for-profit organizations, including:
You can find out more about this issue and other important information affecting our profession in the Journal of Accountancy, AICPA News Update, BusIndNews and CPA Letter Daily.
Carol Scott, CPA, MBA
Vice President - Business, Industry & Government
American Institute of Certified Public Accountants
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