Examples of financial risk factors

As a financial manager, you need to be able to monitor risk. In other words, you need to keep an eye on things that could go wrong and make sure you're prepared. Some of the most common risks are below:

Financial management

1. Low cash reserves
2. Money that doesn't go through the bank account
3. Debts
4. Money still in the bank for debts that haven't been paid yet. (It looks like you're okay but the money is already spent.)
5. Embezzlement
6. Interest fluctuations
7. Changes in taxes and fees (such as changes in tax laws)
8. Currency fluctuations
9. Theft
10. Low income high expenditure periods (e.g. Christmas holidays)
11. Dependence on informal funding agreements (e.g. volunteer might drop out, loaned equipment might be recalled, etc.)

Personnel

1. Changes in staff salary or wage packages
2. Changes in personnel and policy at board level
3. Disputes at board level
4. Changes of staffing in financial management
5. Loss of key staff
6. Loss of any staff requiring substantial hiring costs for new people