This webinar discusses risk factors non-profit organizations need to be aware of during the COVID-19 pandemic. It covers topics like fraud risks, enterprise risk management, and the fraud triangle. Panelists will discuss how non-profits can identify risks, establish risk management policies, and determine the appropriate response when suspecting fraud. Attendees can submit questions and learn about benefits of implementing enterprise risk management programs.

1. NFP SPEAK
WHAT RISK FACTORS
NOT-FOR-PROFIT
ORGANIZATIONS NEED TO
KNOW IN TODAY’S COVID-
19 ENVIRONMENT
CITRIN COOPERMAN’S
NOT-FOR-PROFIT COVID-19
WEBINAR
evolutionTUESDAY, NOVEMBER 10, 2020
12:30 PM – 1:30 PM EST
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PANELISTS: Ken Yormark, John Eusanio,
David Lawrence & Zack Slingsby

2. evolution COVID -19 UPDATE
TITLE
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• TBD
WELCOME & INTRODUCTION
John Eusanio, CPA, CGMA
Partner & Not-For-Profit Practice Leader

3. evolution AGENDA
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• Not-For-Profit Fraud Risks
• Enterprise Risk Management (“ERM”)
• Questions and Answers

4. evolution KEY REMINDERS / USING ZOOM
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• The webinar is 1 hour and based on your participation.
• You have joined in listening mode only.
• You will have the opportunity to submit questions to our moderator/speakers by typing
your questions into the Q&A icon on the Zoom panel.
• This session is being recorded and a playback link will be sent.

5. evolution COVID -19 UPDATE
TITLE
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• TBD
SPEAKERS
John Eusanio, CPA, CGMA
Partner & Not-For-ProfitPractice
Leader
jeusanio@citrincooperman.com
Ken Yormark, CPA, CFE,
CFF, CAMS
Partner & Forensic & Litigation
Services Practice Leader
kyormark@citrincooperman.com
Zack Slingsby
Founder& Creative Director
zack@humanfactormedia.co
David Lawrence
Founder& Chief Collaborative
Officer
dlawrence@ranenetwork.com

6. evolution The Factors of Fraud
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The Fraud Triangle
• Perceived pressure - personal financial pressure or work-
related
• Rationalization - finding good reasons for doing things that
we know are wrong.
• Opportunity – perception that an opportunity exists
The 20 / 60 / 20 Rule

7. evolution Not For Profits Fraud Susceptibility
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• Tend to place executive control in their founder, executive director,
or substantial contributor
• Focus funds on their core service
• Often engage untrained volunteers
• Boards comprised of volunteers
• Transactions tend to be non-reciprocal
• Susceptible to negative publicity

10. evolution Suspecting Fraud
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• Do nothing - avoid bad publicity or hope that the problem will disappear
• Attempt to handle the issue internally
• Engage law firm and/or forensic accountants
• Identify how the loss occurred,
• Preserve any available evidence,
• Quantify the loss,
• Control the flow of information and
• Minimize the loss.
• At completion – aide management in establishing adequate fraud
prevention and risk management policies

11. evolution Enterprise Risk Management (“ERM”)
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12. evolution Risk
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• The potential for loss of value or the sub-optimization of
gain – it may be caused by an event, or series of events,
that can adversely affect the achievement of an
organization’s mission.

13. evolution ERM
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• A continuous process that identifies, mitigates, and
monitors potential future events that create uncertainty, in a
manner that reduces potential loss and increases potential
gain.

14. evolution Risk Management
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15. evolution Enterprise Risk Assessment
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• ERM framework needs to be clearly defined
• Internal, external and risk parameters
• Establish expectations around risk culture
• Ensure that critical ERM objectives are tied to performance
objectives
• Prioritize ERM objectives
• Identify and establish risk budgets and funding

16. evolution Risk Response
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• As part of its ERM program, an organization should seek to
both mitigate and exploit the advantages of risk as it
analyzes its treatment of risk.
• Once risks are organized and prioritized an organization
may choose to do one or many of the following:
• Avoid the risk • Change the consequences
• Seek an opportunity and exploit the
risk
• Share the risk with another party
• Remove the source of risk • Retain the risk
• Change the likelihood

17. evolution ERM Challenges For Not-for-Profit
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Demonstrating the Benefit of ERM Prioritizing risks
Defining risk Developing mitigation plans
Establishing ownership Follow through of risk mitigation
plans
Determining the appropriate
approach
Risk reporting
Identifying and quantifying risks
• Cyber security
• Digital disruption
Keeping ERM alive
Fraud Regulatory changes and compliance

18. evolution Benefits of ERM
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• Reduces surprises
• Establishes processes to identify risks in a timely manner
• Helps coordinate regulatory and compliance matters
• Connects decision-making to risk assessment
• Emphasizes organization-wide accountability and
transparency
• Builds effective audit and monitoring activities
• Foundation for many operational activities

19. evolution QUESTIONS & ANSWERS
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20. evolution COVID-19 RESPONSE UNIT
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Find constant, real-time access to tax alerts, industry-specific
communications, and recession preparedness tools you can use to help with
your business needs. Please visit our COVID-19 Response Unit at
(www.citrincooperman.com/CRU).

21. evolution ABOUT CITRIN COOPERMAN’S NOT-FOR-
PROFIT PRACTICE
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Citrin Cooperman’s dedicated Not-For-Profit Practice forms collaborative partnerships with
not-for-profit organizations to gain a deep understanding of their missions and drive creative
solutions tailored to their unique needs.
We are committed to your compliance, governance, regulatory, and consulting
needs so you can focus on what counts: your mission.
Our team members are active on boards of local not-for-
profit organizations and national associations. This
enhances our ability to serve our clients and demonstrates
our commitment to providing unparalleled service to the
not-for-profit industry.
To learn more about our Not-For-Profit Group and the
services we provide, please click the following link
https://www.citrincooperman.com/industries/not-for-profit.

22. evolution ABOUT CITRIN COOPERMAN
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23. evolution DISCLAIMER
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These materials provided by Citrin Cooperman & Company, LLP, are intended to provide general
information on a particular subject or subjects and are not an exhaustive treatment of such subject(s)
and are not intended to be a substitute for reading the legislation. Any advice contained in this
communication, including attachments and enclosures, is not intended as a thorough, in-depth
analysis of specific issues. Nor is it sufficient to avoid tax-related penalties. The materials are being
provided with the understanding that the information contained therein should not be construed as
legal, accounting, tax or other professional advice or services. Before making a decision or action that
may affect you or your business, you should consult with Citrin Cooperman & Company, LLP, or
another qualified professional advisor. The materials and the information contained therein are
provided as is, and Citrin Cooperman & Company, LLP, makes no express or implied representations
or warranties regarding these materials. Without limiting the foregoing, Citrin Cooperman & Company,
LLP, does not warrant that the materials or information contained therein will be error-free or will meet
any particular criteria or performance or quality. In no event shall Citrin Cooperman & Company, LLP,
its affiliates, officers, principals and employees be liable to you or anyone else for any decision made
or action taken in reliance on the information provided in these materials. The information and content
provided in these materials is owned by Citrin Cooperman & Company, LLP, and should only be used
for your personal or internal use and should not be copied, redistributed or otherwise provided to third
parties.

24. THANK
YOU
evolutionwww.citrincooperman.com
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