Preparing for the Next Market Crisis: A Checklist for Investment Committees
With the All Ords down over 6% in the last week, non-profit finance, risk and investment committee members may want to take steps to ensure they are well-prepared and well- positioned to manage the risks associated with a turbulent market.
Three weeks ago, we provided our non-profit clients with a checklist designed to help them gauge their own level of preparedness. We're now sharing this checklist for the benefit of a wider group of charities, non-profit and philanthropic investors.
As we say right at the start in Courage & Care:
"No-one in the investment community knows when the next big market correction is coming, but every investor needs to be ready for it. This checklist can’t completely immunise non-profit investors against all the pain of a market crash, but it can help ensure they are as well prepared as possible.
Surviving a market crisis in one piece requires an equal application of courage and care. Non-profit investment committees shoulder ongoing fiduciary obligations, yet many meet only once a quarter. Time pressures and other complications mean it can be difficult for committees to step back and analyse their situation, even when dark clouds are forming on the horizon. Still, when the storm comes, the ones who fare best are likely to be the ones that took the time to properly prepare.
Koda has put together a checklist for non-profit committees in order to make the work of preparation and analysis easier. The checklist is intended for practical use. We recommend investment committee chairs use it for the sake of their committees, their organisations, their stakeholders and ultimately their beneficiaries.
The checklist in this paper can be used by an investment committee ahead of a market crisis, or in its immediate aftermath. We hope you find it useful and we will be happy to see how else Koda might be able to help you, should you find yourself unable to tick all the boxes."
Please ensure you read the disclaimer included in Courage & Care, the checklist referred to in this article.