The North of England Zoological Society – Annual Report and Financial Statements 2021
RISKS & UNCERTAINTIES Trustees have a risk management strategy that sets out responsibilities for risk management across the Society, the Society’s risk appetite, a process for reporting, review and escalation in relation to identified risks, and links to the internal control environment and external legal frameworks. Through maintaining a risk register, Trustees actively review the major risks that the Society faces on a regular basis against the relevant mitigating internal controls and actions being taken to manage risk. By ensuring cash reserves are kept at agreed levels and through putting in place appropriate insurances, Trustees are satisfied that there will be sufficient resources in the event of the most adverse conditions. The effectiveness of the Society’s risk assessment procedures is reviewed by the Audit & Risk Management Committee. The Society’s internal auditors undertake a schedule of internal audits determined and scoped by the Audit & Risk Management Committee and report back to the committee on a regular basis. The internal auditors also provide advice and guidance on the Society’s overall risk management process. There are over 20 risks identified within the risk register. The risks identified by the Trustees as likely to have the most significant impact on the Society are set out below.
Risk: Major incident That there is a major incident that threatens human or animal safety and/or risks the Society’s assets and reputation. An example of such could be a dangerous animal escape, an act of terrorism, an outbreak of disease or a cybersecurity attack.
Risk: Reputation of zoos If the reputation of zoos in general is undermined, leading to a change in public sentiment, or if lobbying from anti-zoo organisations leads to significant restrictions in how zoos can operate, then this would impact the Society’s ability to achieve its mission.
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Potential impact
How do we manage the risk?
Such an incident could cause major financial loss and significantly risk the Society’s ability to operate in the future.
The Society has in place documented risk assessments, emergency procedures and business recovery plans. Regular practice drills are undertaken, consulting with emergency services.
The Society relies on visitors, members and donors for the majority of its income, and therefore keeping the zoo open and welcoming visitors is key to financial sustainability.
A number of independent audits take place each year to review and check compliance with internal policies, procedures and controls. A schedule of insurances is reviewed annually by the Audit & Risk Management Committee. A cash reserve is held to mitigate any period when the zoo is closed, the level of reserve having been increased following COVID-19.
Potential impact
How do we manage the risk?
Significant change in public perception of zoos could significantly impact the Society’s income from visitors.
The Society regularly talks publicly about its role as a world class zoo, with the highest standards in animal welfare, and impact of its conservation work, both within the zoo and in the field, to achieve its mission of preventing extinction.
Changes in legislation could mean that the Society has to significantly change its way of operating, or the collection that it holds, potentially reducing the impact it can have in preventing extinction.
The Society’s staff work closely with, and hold positions on, a number of umbrella organisations representing zoos, animal welfare and conservation, striving to continually improve standards in husbandry. The Society’s Public Affairs team work with a number of stakeholder groups to communicate the approach to conservation and the impact that the Society’s activities have. We also regularly research public sentiment in this area. » Find out more about how we engage with stakeholders on page 38.
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