PRINCIPAL RISKS AND UNCERTAINTIES

The trustees are responsible for ensuring WWF-UK has a sound system of internal control to safeguard its assets and funds, and for ensuring its assets and funds are used only in furtherance of WWF-UK’s objectives. The system of internal control is intended to manage appropriately rather than eliminate risks and to give reasonable rather than absolute assurance.

The trustees exercise their responsibilities through their board meetings and the meetings of the committees of the board described on page 78. The system of internal control includes:

• A strategy to 2030, accompanied by a strategic plan 2019-23 and commercial model. These were approved by trustees and came into effect on 1 July 2018. The strategic plan covers the overall aims and objectives of the organisation and is used as a basis for annual planning and quarterly progress reviews by the Executive Group and trustees.

• Goal groups. These have been established to ensure activities are coordinated across departments and are focused on the new strategic goals.

• Policy and performance steering group and external affairs steering group. These are forums that have been set up to streamline decision-making. Among other responsibilities, the groups ensure there is adequate risk assessment and due diligence over partnerships.

• Annual performance targets and operating plans, with actual performance monitored every three months against plans. We have developed outcome and impact metrics for monitoring performance across the goals.

• A continuing risk management programme. The top risk register is reviewed on a quarterly basis by the

Executive Group and reported to the Audit Committee. At each quarterly review meeting, in addition to reviewing risks and their potential likelihood and impact, priority actions are identified. The operational risk registers are updated every quarter by each goal group and inform the top risk register. The top risks reported to the Executive Group and Audit Committee are set out (right), with the risks emanating from the Covid-19 pandemic considered as a separate risk although it has also had an impact on other risks.

• An internal audit programme with findings and progress reviews reported to the Executive Group and the Audit Committee. This includes internal audits of programme offices carried out by WWF International and WWF-US.

• A scheme of delegation from the trustees to the chief executive and thereon to managers exists within the organisation.

• Procedures to monitor and evaluate the effectiveness of expenditure on conservation programmes and the achievement of outputs and outcomes.

• An environmental management system to ensure we monitor and manage our own impact on the environment. The system is audited by an independent assessor. We are committed to transparency by publishing annually our performance against the targets we set ourselves.

• A sign-off process, to ensure external projects with which we are associated reflect our values and protect our reputation.

Covid-19 pandemic

Not being able to achieve our strategic objectives and adverse effects on staff health and wellbeing.

Finance

Not being able to meet income targets or increasing costs, resulting in an impact on our ability to achieve our strategic objectives.

Reputation

Critical and sudden impact on reputation and brand leads to a significant and sharp reduction in fundraising and audience engagement.

Safeguarding

Incidents could affect communities we work with and colleagues in WWF and partner organisations.

Political

There are unpredictable political contexts in a number of countries where we fund priority work. • Establishment of a cross-organisational team of managers reporting into the Executive Group and responsible for: monitoring and ensuring staff wellbeing and robust IT systems and equipment for remote working; planning and ensuring a safe return to work in offices; and close monitoring of financial performance, supporter income and the operational and financial situation in other offices in the WWF network. • Review of objectives and activities in 2020 in light of the impact of the pandemic, and a review of the strategy for the next three years taking into account the opportunities and threats to the strategy given the changed world due to Covid-19. • Close monitoring by trustees of the impact of the pandemic on the finances and strategy of the organisation. • Monthly reporting on income and expenditure and quarterly review of projected outturns for the year. • Budgeting and planning on the basis of at least three different scenarios. • Regular long-term financial planning to ensure the organisation’s longerterm plans are financially sustainable. • Regular review of the general reserves target range to ensure it is set at an appropriate level in light of the assessed risk to the various income streams. • Close collaboration with WWF International in dealing with issues arising in the media. • Sign-off processes for external communications to ensure they are consistent with our brand and strategy. • Progress in the review and improvement of the various operational and programmatic standards that are in place for the WWF network. • Thorough due diligence in respect of partners and suppliers we contract and work with.

• A robust Environmental and Social Safeguarding Framework is being rolled out across the WWF network. This includes a safeguards screening tool, a tiered mechanism for communities to raise complaints and grievances, and a global response protocol for escalating serious complaints. Mandatory training has been rolled out to all WWF staff and trustees. A global safeguards unit has been established to implement and maintain the safeguards framework. • WWF International has put in place a Conservation Quality Committee (CQC), with representation from WWF-UK to review and sign off on highrisk projects and landscape safeguards plans. • WWF-UK continues to run its own safeguarding assessments for all new projects and to ensure the views of local people are reflected in project planning, implementation and monitoring. • Senior management has a watching brief on the political situation in the

UK, based on analyses by different teams, and regularly liaises with other country offices regarding the political situation in those countries and the development of scenario planning designed to minimise the effect of different outcomes.