Operational and compliance risk
We hold ourselves to high standards in order
to do our very best for those we work with and
support. We strive to establish a culture of ongoing
improvement, continually streamlining systems
and processes in order to increase efficiency in
our operations.
How we mitigate this risk: We have policies,
procedures, mandatory training programmes and
governance structures to monitor and mitigate
operational risks and major incidents, including
understanding our regulatory requirements.
We recruit and manage people, informed by clear
role profiles and an operating model showing
our current and future needs. Macmillan aims to
ensure our recruitment mitigates unconscious bias
and encourages applications from all candidates
regardless of background.
An audit of all completed mandatory training is
reviewed at an executive level in the Risk Board
meetings, chaired by the Director of Risk.
Our internal processes around information security,
health and safety, safeguarding and counter-fraud
follow recognised standards. We also ensure we
understand the information governance behind our
use and retention of data, and we act responsibly
in line with the Information Commissioner's Office
best practice.
We also have contingency planning and crisis
management arrangements in place, in case
needed. In 2023, we reviewed our business
continuity plans and tested different scenarios
against these plans to challenge their robustness.
In 2024, we will implement a business continuity
plan testing schedule to continuously strengthen
resilience and we will introduce a new framework
design for incident management allowing us to
respond with more agility to situations.
Financial risk
We are 98% funded by fundraised income, so
we regularly monitor the external environment
to understand potential impact on our income,
investments and spend.
How we mitigate this risk: We monitor our financial
performance, liquidity and solvency through a
system of financial reporting that compares actual
results against the phased annual budget and the
latest quarterly forecast on a monthly basis. In
addition, we prepare longer-term financial forecasts
aligned to our strategic plans, incorporating
scenarios to confirm our longer-term solvency.
Financial instrument borrowings are not used, and
our investment and liquidity policies are set with
input from external advisers to ensure we manage
our risks and have adequate cash available to meet
our ongoing liabilities.
99% of our investments are held in sterling, with
the remaining balance held in foreign currencies.
We therefore have limited exposure to any risk of
changes in foreign currency rates.
Credit risk on amounts owed in respect of incoming
resources is low.
Investment policies, delegation of authorities,
procurement and expenses policies are in place.
We have defined accounting policies and financial
controls for accurate and timely reporting.
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Environmental, social
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Financial review
Strategic report
Overview Financial statements Thank you