Document background
The Nonprofit Risk Assessment is an essential governance tool for charitable organizations operating in Hong Kong's complex regulatory environment. This document becomes necessary when organizations need to systematically evaluate their risk exposure, ensure compliance with local regulations, and establish robust risk management frameworks. It is particularly relevant during annual planning cycles, before major strategic initiatives, or when required by regulators or major donors. The assessment covers crucial areas including financial management, operational efficiency, regulatory compliance, and reputational risk, all within the context of Hong Kong's unique nonprofit sector requirements. The document incorporates specific considerations related to Section 88 tax exemption status, local governance standards, and territory-specific operational challenges, making it an invaluable tool for nonprofit organizations seeking to maintain effective risk management practices in Hong Kong.
