The Institute of Risk Management **Annual Report and Financial Statements Year ended 30 June 2025** 




## **About IRM** 

The Institute of Risk Management (IRM) is the leading professional body for Enterprise Risk Management (ERM). We provide globally recognised qualifications, training and advisory, publish thought leadership and run insightful events open to both our members and the wider public, all of which are underpinned by our professional standards, defining the requirements risk managers need to meet. 

By these means, we help organisations and individuals build excellence in risk management and raise awareness of risk across society so that they protect value and take advantage of opportunity. 

IRM is a registered charity. 

© Institute of Risk Management A company limited by guarantee. Registered in England number 02009507 Charity Number 1209756 

Registered Office: 2nd Floor, 80 Leadenhall Street, London, EC3A 3DH 

T: +44 (0)20 7709 9808 E: enquiries@theirm.org W: www.theirm.org 



## **Board of Trustees** 

## **Officers and professional advisers** 

## **Stephen Sidebottom** 

Director CHAIR 

## **Dorothy Maseke, CFIRM** 

Lead, Nature Finance & TNFD FSD Africa DEPUTY CHAIR 

## **Anthony Chidwick, CMIRM** 

Director DEPUTY CHAIR 

## **Annie Tay** 

Managing Director Cubic Risk Solutions 

## **Mark White** 

Global Head of Risk, Mace 

## **Ian Livsey** 

Chief Executive 

## **David Epstein** 

Managing Director, Aviva Capital Partners 

## **Charity Mandiopera** 

Director, Dialogue on Shelter Trust 

**Esther Chesterman** CEO, National Extension College 

## **Mariam Crichton** 

CEO, 7 Satya 

……………………………………………………………………………………………………………………………………………………………. 

**COMPANY SECRETARY REGISTERED OFFICE** Ian Springett from 1[st] Floor 13 September 2024 80 Leadenhall Street London, EC3A 3DH 

**COMPANY NUMBER** 02009507 

## **BANKERS** 

## **AUDITORS** 

HaysMac LLP Lloyds Bank plc 10 Queen Street Place 113 – 116 Leadenhall Street London, EC4R 1AG London EC3A 4AX 

**CHARITY NUMBER** 1209756 

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## **The Trustees’ Report** 

## **Year Ended 30 June 2025** 

The Trustees have pleasure in presenting their report and the financial statements of the Institute and its five subsidiaries IRM Trading, IRM Advisory Services, the Institute of Operational Risk and IOR Enterprises and IRM Educational Foundation for the year ended 30 June 2025. 

The Institute is a company limited by guarantee and a registered charity, formally registered as a Charity in August 2024. Its governing document is the Memorandum and Articles of Association, originally incorporated on 11 April 1986 and subsequently updated on 1 December 2022. This is the first year in which the report and financial statements have been prepared on the basis of the Institute’s charitable status. 

## **Objectives and Activities** 

The principal activities of the Institute are to promote for the public benefit the art and science of risk management.  This is done by the provision of risk management education, training and knowledge services. The Trustees confirm that they have complied with the duty set out in section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s guidance on public benefit when reviewing the Institute’s aims and objectives, and in planning future activities. 

## **Achievements and Performance** 

During the year, the Institute of Risk Management (IRM) advanced its charitable objectives by promoting education, training and professional standards in risk management. Key achievements included: 

- Lifelong learning – Delivered internationally recognised qualifications, including the International Certificate in Enterprise Risk Management and the 

Certificate in Operational Risk Management, together with a wide range of training courses. Free student membership was offered to support early-career professionals. 

- Global Reach – registered subsidiary in Kenya, strengthening the Africa Regional Groups and advancing risk management capacity across Africa as part of IRM’s globalisation strategy. In parallel, the IRM expanded its presence in Asia, with increasing engagement through Regional Groups and partnerships to promote professional standards and risk education in fastgrowing markets. In addition, the process of registering a company in Riyadh, GCC, was initiated, further extending IRM’s global reach and supporting future engagement across the Gulf region. 

- Professional Governance – Submitted updated Terms of Reference for Regional Interest Groups (RIGs) and 

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Special Interest Groups (SIGs), together with new handbooks, to ensure consistency and accountability in group operations worldwide. 

- Thought Leadership – Published guidance and hosted free webinars on emerging risks including climate change, ESG, cyber threats and geopolitical volatility, ensuring that risk managers have access to current, practical insights. 

- Academic Partnerships – Maintained collaborations with leading universities, enabling recognition of prior learning for IRM diploma graduates towards MSc programmes, and supported joint research to enhance sector knowledge. 

- Quality Assurance – Continued to deliver qualifications under Ofqual regulation, ensuring high standards of assessment and national recognition of IRM awards. 

- Other charities contributions – We appointed a Dr of Marketing in Malaysia to IRM Foundation board, donated to Britcham Indonesia’s football fund for unprivileged children and to schools in Nairobi, Kenya. 

Through these activities, IRM has enhanced knowledge, skills, and professional practice within the risk management community, thereby contributing to stronger governance and risk resilience across sectors and in general society. 

## **Governance** 

The Board of Trustees is committed to the highest standards of charitable company and corporate governance, which it believes are critical to business integrity and performance and to maintaining member and public confidence. During the past year the Board discharged its responsibilities in line with appropriate standards of charitable company and corporate governance. 

Our Annual General Meeting takes place electronically, in December, and formal notification together with the annual report and financial statements, is sent to members at least 14 working days in advance of the meeting.  Each item of business is a separate resolution.  The collection and analysis of the votes are handled by the Company Secretary. 

The Trustees who have served on the Board since 1 July 2024 are: 

|Stephen Sidebottom|Chair|
|---|---|
|Anthony Chidwick|Deputy Chair|
|Dorothy Maseke|Deputy Chair|
|Annie Tay||
|Mark White||
|Ian Livsey|Chief Executive|
|David Epstein||
|Esther Chesterman||
|Mariam Crichton||
|Charity Mandiopera||



## **Trustees’ interests** 

There are no directors’ interests requiring disclosure under the Companies Act 2006 other than as disclosed in note 18. 

The Charitable company does not have a share capital and is a company limited by 

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guarantee. In the event of the Charitable company being wound up the maximum amount each member is liable to contribute is £1. 

## **Trustees’ responsibilities** 

The Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group charitable company or to cease operations, or have no realistic alternative but to do so. They must also: 

- select suitable accounting policies and then apply them consistently; 

- make judgements and accounting estimates that are reasonable and prudent; 

- observe the methods and principles of the Charities SORP; 

- prepare the financial statements on a going concern basis unless it is inappropriate to presume the Charitable company will continue in business. 

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charitable company’s transactions and disclose with reasonable accuracy, at any time, the financial position of the Charitable company and to enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

## **Attendance record at board meetings during the year** 


The Board balances the longer-term strategic direction of the Charitable company with the immediate operational requirements and delivery of the level of financial results that enable it to move forward positively towards its goals. 

There are formal matters reserved for consideration and approval by the Board, and specific responsibilities are delegated to the committees and groups set up by 

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the Board as permitted under the Articles of Association. 

These various committees and groups report to the Board, where final responsibility rests. 

## **Trustees’ appointment and training** 

The Trustees are appointed by the existing board in accordance with the charitable company’s governing document. When vacancies arise, potential trustees are identified through open recruitment processes and all appointments are approved at board meetings. New trustees are provided with an induction pack and are encouraged to familiarise themselves with the Charity Commission’s guidance on trustee responsibilities, as well as the charitable company’s policies and procedures. The Nominations Committee is responsible for ensuring that a formal, robust and transparent process exists for the selection of potential Board members and the appointment of committee chairs. Its duties include: 

- reviewing the structure, size and composition (including the skills, knowledge, experience and diversity) of the Board 

- developing and recommending the selection criteria for assessing potential nominees to the Board; 

- establishing and implementing a formal process for identifying potential candidates; 

- fairly and objectively evaluating candidates against the agreed criteria and making suitable recommendations to the Board. 

The members of the Nominations Committee are Dorothy Maseke (Chair), Stephen Sidebottom, Ian Livsey and Anthony Chidwick. 

## **Risk Management** 

Appropriate policies and systems are in place to evaluate and treat the risks arising from the key activities of the Institute, enabling both advantages and threats to be handled to the overall benefit of the Charitable company. 

The Board, through the Chief Executive, is responsible for ensuring that budgets and plans are prepared and that programmes of work are implemented. There are on-going processes embedded within the Institute’s overall business operations, and addressed by senior management, which monitor the effective application of the policies, processes and activities related to internal control and risk management. 

IRM defines risk as the possibility that an action and/or an event will affect IRM’s ability to achieve its planned objectives. As a consequence of managing identified risks, our planned objectives are more likely to be achieved and the confidence of our internal and external stakeholders increased. 

The Board has overall responsibility for the Charitable company’s systems of internal control. Such systems are designed to meet the Charitable company’s needs and to address the risks to which it is exposed, as would be expected by an organisation that has enterprise risk management at its heart. The systems mitigate, rather than eliminate, the risks faced by the Charitable company and can only provide reasonable and not absolute assurance against material mismanagement or loss. 

The Board delegates the annual review of internal control processes and their effectiveness, to the Audit and Risk Committee. Such responsibility of the Committee is fulfilled by considering periodic reports from senior management 

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including a risk register for the Institute. Senior management then monitor the risks and internal controls during the course of the year and advise the Audit and Risk Committee and in turn the Board of any significant developments. Necessary actions are taken to remedy any significant failings or weaknesses as they are identified when the Audit and Risk Committee considers the effectiveness of internal controls as reported by senior management and also from the external auditors in relation to financial internal controls. Senior management also provide the Audit and Risk Committee with a periodically updated Risk Register, as necessary, and such Risk Register is also reported to the Board as a key section of senior management’s regular report on key performance indicators. 

The members of the Audit and Risk Committee who served during the year were Anthony Chidwick (Chair), Ian Livsey, Nigel Toms, Catherine Njoki-Nyaga, Collins Acheampong, and Karen Eckstein. The Committee met four times. 

The Institute operates in a fast-changing global environment. The risk register, reviewed quarterly by the Audit & Risk Committee, identifies key risks: 

- Strategic Risk – failure to adapt to new trends could reduce relevance. Mitigation: horizon scanning, advisory panels, and regular updates to strategy. 

- Financial Risk – global instability may affect income. Mitigation: diversified income streams, reserves policy, and strong cash management. 

- Operational Risk – limited staff and volunteer capacity may constrain growth. Mitigation: investment in digital tools and partnerships. 

- Reputational Risk – poor quality control could undermine confidence. Mitigation: robust quality assurance, external accreditation, and stakeholder engagement. 

## **Remuneration Policy** 

The Institute’s policy is to provide competitive rewards to attract and retain high performing individuals whose contribution will enhance member value while ensuring rewards remain appropriate and proportionate when compared to market practice. The Institute aims to position salaries at the median of comparator groups. Benchmarking is 

undertaken periodically and appropriate judgement is applied in evaluating market data. This policy has been agreed by the Remuneration Committee. 

A Remuneration Committee sets on-going policy for the pay and reward of staff and approves the salary and bonus of the Chief Executive and salary of the Board Chair. 

In accordance with the governing documents, trustees may only be remunerated in limited circumstances (for goods or services, the Chair, Additional Trustees for acting as directors of subsidiary undertakings, and the Chief Executive Officer as approved by the Board). All such payments must be reasonable, approved. 

Membership of the Committee is detailed in terms of reference approved by the Board and consists of the Board Chair, The Deputy Chairs, and any former Board Chair still serving as a Trustee. Members during the year were Stephen Sidebottom (Chair), Anthony Chidwick, Ian Livsey and Dorothy Maseke. 

## **Finance and Investments** 

A Finance & Investment Committee assists the Board in the fulfilment of its corporate 

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governance duties in relation to financial management and market-based investments held by the Group.  Its duties include: 

- oversight of the Group’s cash and liquidity management 

- review of the financial performance of the Group and any major projects it undertakes 

- oversight of IRM’s market-based investments and its investment policies. 

## **Financial review** 

IRM is a charitable company, committed to reinvesting any surpluses generated for the benefit of its work to promote risk management in society at large. 

In the financial year there continued to be a challenging global geopolitical situation. The cost-of-living crisis impacted many people. Climate change and the challenges of reaching net zero occupied thinking at all levels of government, industry, and societies. 

Gross income increased year on year by £413,304 (8%), and we invested for future growth in recruitment of key staff, international expansion, and in our technology infrastructure. 

The proportion of income from overseas has risen from 39% in FY 2024/2025 to 42% in the current financial year. 

Risk managers have a key role to play in rising to the challenges facing the international community and individuals across the world. We will continue to work in the coming year on placing our members, our stakeholders, and all of those involved in the IRM at the forefront of developing further the profession of 

risk management and increasing our global footprint across society for the benefit of all. 

The net movement in funds for the year amounted to £73,629 (2024: £406,850) as shown in the Statement of Financial Activities on page 16. 

A budget with a greater surplus has been set for the next financial year as the Institute seeks to grow based on its investments, its expansion into global markets and the use of technology including AI. 

## **Reserves Policy and position** 

The reserves of the Group at the year-end stood at £1,753,692 (2024 £1,680,063) as shown in the Balance sheet on page 17. 

It is the policy of IRM to hold reserves at a level such that its core activities can be maintained during periods of less favourable financial or economic conditions, and that it can continue to fulfil its charitable purpose, its members and those completing examinations. 

Given the nature of its activities, the Board decided it is important to focus on cash (or near equivalents), as well as total reserves, which changes significantly over the year due to the cyclical nature of the business. 

The year-end group cash balances were £2,175,877 (2024: £1,765,815).  This is significantly above the target minimum level of total reserves of £1,100,000 to be held in readily accessible accounts, as set by the Trustees.  This area is carefully monitored by our Finance & Investment Committee. 

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As at 30 June 2025, the charity held £888,919 (2024: £1,311,427) in market listed investments in addition to cash reserves. In line with the Institute’s investment policy and in response to sustained underperformance, the Sterling Bond Fund was fully divested during the year, with the proceeds reinvested in fixed term cash deposits to preserve capital and secure a predictable return. The charity continues to undertake regular reviews of its equity investment portfolio to ensure compliance with its investment objectives and prudent treasury management practices. 

The Trustees are aware that reserves should not be maintained at a level that is unnecessarily high. To this end, the Finance & Investment Committee periodically reviews the reserves position against projected expenditure, forward commitments, and planned strategic initiatives. Where reserves are judged to be above the level required for risk management and sustainability, the Trustees will consider the following options: 

- Reinvestment in charitable activities, such as expanding member services, developing qualifications, or enhancing training and education. 

- Strategic projects and innovation, to strengthen long-term resilience and support the Institute’s charitable objectives. 

- Gradual release of surplus funds through planned budgets to balance financial prudence with effective use of charitable resources. 

These measures ensure that reserves remain proportionate, aligned with the risk profile and financial needs of the Institute, 

and are actively deployed to further its charitable aims. 

The Trustees remain confident that the Institute is in a strong position to withstand uncertainties arising from the current economic climate and inflationary pressures, while ensuring that reserves are managed at an appropriate level. 

## **Fundraising** 

In accordance with the Charities SORP (FRS 102) and the Charities (Protection and Social Investment) Act 2016, the Trustees confirm that the Institute does not undertake any fundraising activities directed at the general public and has not engaged the services of professional fundraisers or commercial participators. No complaints were received in relation to fundraising during the year. The Trustees are satisfied that the Institute’s approach ensures compliance with the applicable legislative and regulatory requirements. 

## **Future plans** 

Looking forward, the Trustees intend to: 

- Begin our application for Chartered status. 

- Complete the redevelopment of shorter qualifications or awards in line with the growing trend in the way learners access lifelong learning. 

- Expand international outreach, building on the success of the Nairobi visit and strengthening presence in Asia through Regional Groups, partnerships and tailored training initiatives. 

- Register a wholly owned subsidiary company in Riyadh to provide lifelong learning opportunities closer to the important markets in the GCC region. 

- Strengthen the alignment of interest groups and chapter activity with membership growth, training, and 

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advisory services, while avoiding duplication across regions and sectors. 

- Invest in thought leadership and research, moving from risk identification to practical solutions, in collaboration with external partners. 

- Extend university partnerships to embed risk management into higher education pathways and expand recognition of IRM qualifications. 

- Develop further resources to support the Armed Forces Community in transferring their skills into professional risk management roles. 

- Continue to expand digital and blended learning opportunities to widen global access to qualifications, training and CPD. 

The Trustees believe these initiatives will ensure IRM continues to deliver public benefit by raising professional standards, supporting individual careers, and strengthening risk management capability worldwide. 

## **Auditor** 

A resolution proposing re- appointment of the auditor for 2025/26 will be put to the Annual General Meeting in December 2025. 

## **Statement of disclosure to auditors** 

- a) So far as Trustees are aware there is no relevant audit information of which the Charitable company’s auditors are unaware, and 

- b) The Trustees have taken all reasonable steps in order to make themselves aware of any relevant audit information and to establish that the Charitable company’s auditors are aware of that information. 

## **Signed by order of the Trustees** 

Approved by the Trustees on 16 October 2025. 

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## **Independent Auditor’s Report to the members of IRM** 

## **Opinion** 

We have audited the financial statements of the Institute of Risk Management for the year ended 30 June 2025 which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet and the Charitable company’s Balance Sheet, the Consolidated Statement of Cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 30 June 2025 and of the group’s and parent charitable company’s net movement in funds, including the income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 

Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. 

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## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ report(which incorporates the directors’ report). 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: 

- adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of Trustees’ remuneration specified by law are not made; 

- we have not received all the information and explanations we require for our audit. 

## **Opinions on other matters prescribed by the Companies Act 2006** 

In our opinion, based on the work undertaken in the course of the audit: 

- the information given in the Trustees’ report (which incorporates the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the Trustees’ report has been prepared in accordance with applicable legal requirements. 

## **Responsibilities of Trustees for the financial statements** 

As explained more fully in the Trustees’ responsibilities statement set out on page 5, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial 

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statements that are free from material misstatement, whether due to fraud or error. 

In preparing the financial statements, the Trustees are responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so. 

## **Auditor’s responsibilities for the audit of the financial statements** 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to GDPR and company law applicable in England and Wales, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and Tax law. 

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates. Audit procedures performed by the engagement team included: 

- Discussions with management including consideration of known or suspected instances of noncompliance with laws and regulation and fraud; 

- Evaluating management’s controls designed to prevent and detect irregularities; 

- Identifying and testing journals; and 

- • Challenging assumptions and judgements made by management in their critical accounting estimates including dilapidations provision and amortisation of intangibles. 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we 

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will be less likely to become aware of instances of non-compliance. 

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: 

www.frc.org.uk/auditorsresponsibilities. 

This description forms part of our auditor’s report. 

Companies Act 2006. Our audit work has been undertaken for no purpose other than to draw to the attention of the charitable company’s members those matters which we are required to include in an auditor’s report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company’s members as a body, for our work, for this report, or for the opinions we have formed. 

**Kathryn Burton** (Senior Statutory Auditor) for and on behalf of HaysMac LLP Statutory Auditors 

10 Queen Street Place London, EC4R 1AG 

## **Use of our report** 

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the 

October 2025 

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## **Consolidated Statement of Financial Activities for the Year Ended 30 June 2025** 

## **(Incorporating the Income and Expenditure Account)** 

|**Notes**<br>**Income from:**<br>**Charitable Activities**<br>Education<br>Membership<br>Other charitable activities<br>Other trading Activities<br>**Total income**<br>2<br>**Expenditure on:**<br>Charitable activities<br>Other trading activities<br>Other expenditure - taxation<br>7<br>**Total expenditure**<br>5, 6<br>Net (expenditure)/income before investment gains<br>Net gains on investments<br>10<br>**Net movement in funds**<br>Reconciliation of funds:<br>Total funds brought forward<br>**Total funds carried forward**<br>17|**Unrestricted Funds**<br>**2025**<br>**£**<br>Unrestricted Funds<br>2024(as restated)<br>£<br>**2,369,617**<br>2,301,813<br>**688,253**<br>669,617<br>**28,840**<br>13,574<br>**2,559,418**<br>2,247,820|
|---|---|
||**5,646,128**<br>5,232,824<br>**(2,709,346)**<br>(2,473,250)<br>**(2,941,071)**<br>(2,431,522)<br>**-**<br>(64,806)|
||**(5,650,417)**<br>(4,969,578)|
||**(4,289)**<br>263,246<br>**77,918**<br>143,604|
||**73,629**<br>406,850|
||**73,629**<br>406,850<br>**1,680,063**<br>1,273,213|
||**1,753,692**<br>1,680,063|



All activities are continuing and there are no other recognised gains and losses other than those recognised above. A comparative Statement of Financial Activities can be found in Note 19. The notes on pages 19 to 33 form part of these financial statements. 

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## **Consolidated Balance Sheet** 

## **30 June 2025** 

||||**Group**|**Charitable company**|**Charitable company**|
|---|---|---|---|---|---|
||**Notes**|**2025**|2024|**2025**|2024|
|||**£**|£|**£**|£|
|**Fixed assets**||||||
|Intangible assets|8|**196,753**|285,896|**196,753**|285,896|
|Tangible assets|9|**75,749**|58,927|**75,749**|58,927|
|Fixed asset investments|10|**888,919**|1,311,427|**888,922**|1,311,430|
|||**1,161,421**|1,656,250|**1,161,424**|1,656,253|
|**Current assets**||||||
|Stocks||**-**|-|**-**|-|
|Debtors falling due within one year|11|**1,256,538**|1,146,266|**1,035,520**|929,020|
|Cashand cash equivalents||**2,175,877**|1,765,815|**1,184,494**|1,007,585|
|||**3,432,415**|2,912,081|**2,220,014**|1,936,605|
|**Creditors: amounts falling due within**||||||
|**one year**|12|**(2,830,034)**|(2,776,835)|**(2,724,722)**|(2,733,846)|
|**Net current assets/(liabilities)**||**602,381**|135,246|**(504,708)**|(797,241)|
|**Total assets less current liabilities**||**1,763,802**|1,791,496|**656,716**|859,013|
|Provisions for liabilities|13|**(10,110)**|(111,433)|**(10,110)**|(111,433)|
|**Net assets**||**1,753,692**|1,680,063|**646,606**|747,580|
|**Unrestricted funds**||||||
|General fund||**1,747,979**|1,674,350|**640,893**|41,867|
|Designated fund||**5,713**<br>|5,713|**5,713**|5,713|
||17|**1,753,692**|1,680,063|**646,606**|747,580|



The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act.  The Institute has taken advantage of the exemption allowed under section of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements. 

The net movement in funds of the Charitable company for the year was £(100,973) (2024: £265,226). 

Approved by the Board for issue on 16 October 2025 and signed on its behalf. 

**Stephen Sidebottom Chair** 

**Anthony Chidwick** 

**Trustee** 

Company Registration No. 2009507 

**17** 

Institute of Risk Management - Annual report and financial statements year ended 30 June 2025 



## **Consolidated Cash Flow Statement** 

## **Year Ended 30 June 2025** 

|||**2025**||2024|
|---|---|---|---|---|
||**£**|**£**|£|£|
|**Reconciliation of net (expenditure) / income to cash flow from**|||||
|**operating activities**|**(4,289)**||263,246||
|Adjustments for:|||||
|Amortisation of intangible assets|**162,886**||152,753||
|Depreciation of tangible assets|**21,644**||810||
|Decrease/(increase) in debtors|**(32,474)**||100,284||
|Increase/(decrease) in creditors|**58,202**||82,235||
|Corporation tax paid|**(47,227)**||(19,295)||
|(Decrease)/increase in provisions|**(101,323)**||2,842||
|**Net cash generated/(expended) from operating activities**||**57,419**||**582,875**|
|**Cash flows from investing activities**|||||
|Purchases of intangible assets|**(73,743)**||(195,279)||
|Purchases of tangible assets|**(38,466)**||(58,978)||
|Interest received|**13,154**||9,618||
|Dividends received|**20,229**||-||
|Proceeds from disposal of fixed asset investment|**431,469**||-||
|Net cash in/(outflow) from investing activities||**352,643**||(244,589)|
|**Net increase/(decrease) in cash and cash equivalents**||**410,062**||338,286|
|Cash and cash equivalents at beginning of year||**1,765,815**||1,427,529|
|**Cash and cash equivalents at end of year**||**2,175,877**||1,765,815|
|**Components of cash and cash equivalents**|||||
|Cash at bank and in hand||**1,750,877**||1,765,815|
|Short term deposits||**425,000**||-|
|**Total Cash and cash equivalents**||**2,175,877**||1,765,815|



**18** 

Institute of Risk Management - Annual report and financial statements year ended 30 June 2025 



## **1 Accounting policies** 

## **1.1 Statutory Information** 

Institute of Risk Management is a company limited by guarantee, incorporated in England and Wales.  It is also a charity registered with the Charity Commission for England and Wales, number 1209756. The address of its registered office and principal place of business is 1st Floor, 80 Leadenhall Street, London, EC3A 3DH. 

During the year, the Institute registered as a charity. As a result, the financial statements have been prepared in accordance with the Charities Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with FRS 102. 

Consequently, a Statement of Financial Activities (SoFA) has been presented in place of the traditional Income and Expenditure Account, in order to provide a format that reflects the nature of charitable activities and funds. Comparative figures have been restated where necessary to ensure consistency of presentation. 

## **1.2 Statement of compliance** 

The financial statements are prepared under the historical cost convention as modified to include the revaluation of investments at fair value. The format of the financial statements has been presented to comply with the Companies Act 2006, FRS102 The Financial Reporting Standard applicable in the UK and Ireland and the Statement of Recommended Practice Accounting and Reporting by Charities (Second edition, effective 1 January 2019). 

The financial statements are presented in sterling and reflect the results which are all from continuing activities. 

The Institute is a Public Benefit Entity as defined by FRS102. 

## **1.3 Going Concern** 

The Trustees have reviewed their forecasts and cash flow requirements for the foreseeable future and confirm that there are no material uncertainties. The Trustees consider that the organisation will have adequate working capital available based on current forecasts to continue in operational existence for the foreseeable future. They believe the going concern basis of accounting is appropriate for these annual financial statements. 

## **1.4 Basis of consolidation** 

The consolidated (group) financial statements comprise the Institute and its wholly owned subsidiaries IRM Trading Limited (Company number 10242347), Institute of Operational Risk (Company number 05011746), IOR Enterprises Limited (Company number 09954828), IRM Advisory Services Limited (Company number 13705919) and The IRM Educational Foundation (Company number 12159277). 

The results of the trading subsidiary companies are presented in the consolidated income and expenditure account and consolidated balance sheet on a line-by-line basis.  A separate Statement of Financial Activities for the Charitable company itself is not presented because the Charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006. 

The Charitable company’s income for the year amounted to £4,379,988 (2024: £4,083,737). The Charitable Company’s net movement in funds for the year was a decrease of (£100,973) (2024: increase £265,226). 

## **1.5 Income** 

All income is recognised once the Institute is entitled to the income, it is probable that the income will be received and can be quantified with reasonable accuracy. 

Income comprises income from the following revenue streams: membership subscriptions, training, qualification fees, attendance at professional events and short educational courses, royalties and publication income from the sale of textbooks and other professional publications, and other income, all excluding value added tax. 

**19** 

Institute of Risk Management - Annual report and financial statements year ended 30 June 2025 



The following revenue categories are recognised in the period to which they relate; subscriptions, qualification fees, other income, sponsorship and advertising fees.  As such some of these categories of income are deferred.  The Group considers the amounts deferred do not represent a financing arrangement so are stated at their actual values less any settlement discounts or other adjustments to recoverable amounts. 

Income from qualifications represents predominately examinations income and is recognised in the period in which the examination is sat. 

## **1.6 Expenditure** 

Expenditure is included on an accruals basis where there is a legal or constructive obligation to make a payment to a third party and the amount can be measured reliably. Expenditure is either directly attributed to a cost category, or apportioned on a basis consistent with the use of the resources. The irrecoverable element of VAT is included within the item of expense to which it relates. Expenditure on charitable activities includes the cost of delivering education and other services for the benefit of the profession along with the associated support costs. 

Expenditure on trading activities comprises the costs incurred by IRM Trading Ltd, IRM Advisory Servies Ltd, IOR Enterprises Ltd and allocated support costs. 

Support costs comprise the costs which cannot be directly attributed to a particular activity in the Statement of Financial Activities and include governance costs (comprising of board and committee costs and professional compliance expenses). Support costs are apportioned between the various activities according to the estimated usage of staff resource 

## **1.7 Intangible assets** 

Intangible assets comprise the costs of developing qualifications, software, website, and computer systems development. Intangible assets are recognised where it is probable that they will generate future economic benefits and the cost of the asset can be measured reliably. 

Intangible assets with a cost in excess of £1,000 are capitalised. Expenditure below this threshold is normally recognised as an expense in the Statement of Financial Activities; however, items of a similar nature may be grouped and capitalised where, in aggregate, their cost exceeds the threshold and they are expected to be used together as a single asset. Assets are measured at initial cost less subsequent depreciation and any impairment losses.  Amortisation and depreciation is recognised so as to write off the cost of assets over their useful lives on the following bases: Development of qualifications - the examination period over which the qualifications will be tested CRM computer system - three years on a straight-line basis Website and other software - three years on a straight-line basis Assets in course of development - not depreciated until brought into use 

## **1.8 Tangible fixed assets and depreciation** 

Tangible fixed assets are initially measured at cost and subsequently at cost less depreciation and any impairment losses. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life on the following bases: 

Fixtures, fittings & equipment - three years on a straight-line basis Leasehold improvements - over the life of the lease on a straight-line basis Computer hardware - three years on a straight-line basis 

Items costing less than £1,000 may be expensed immediately in the income and expenditure account. 

## **1.9 Fixed asset investments** 

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in the income and expenditure account. 

A subsidiary is an entity controlled by the Institute. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. 

**20** 

Institute of Risk Management - Annual report and financial statements year ended 30 June 2025 



The Institute owns 100% of subsidiary companies.  Details are provided in note 10 of the accounts. 

Investment in listed investment funds are re-measured to market value at each Statement of Financial position date.  Gains and losses on re-measurement are recognised in income and expenditure account for the period. 

## **1.10 Cash and cash equivalents** 

Cash and cash equivalents include cash in hand and current and fixed term deposits with banks, with a maturity of three months or less. The Charitable company holds part of its cash reserves in a CAF Flagstone platform account, which enables access to a panel of UK banks and building societies. This allows funds to be diversified across multiple institutions while seeking competitive deposit rates 

## **1.11 Financial instruments** 

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.  Basic financial instruments are initially recognised at transaction values and subsequently measured at their settlement value. Fixed assets investments are carried at fair value. 

## **1.12 Provisions** 

Provisions are recognised when the Group has a legal or constructive present obligation as a result of a past event; it is probable that the Group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. 

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value.  When a provision is measured at present value the unwinding of the discount is recognised as a finance cost in income or expenditure in the period it arises. 

## **1.13 Pensions** 

The Charitable company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the income and expenditure account in the year they are payable. 

## **1.14 Leasing** 

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the income and expenditure account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. 

Rentals payable under operating leases are charged against income on a straight-line basis over the lease term. 

## **1.15 Employee benefits** 

The costs of short-term employee benefits are recognised as a liability and an expense.  The cost of any material unused holiday entitlement is recognised in the period in which the employee’s services are received.  Termination benefits are recognised immediately as an expense when the Group is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 

## **1.16 Foreign exchange** 

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the income and expenditure account for the period. 

**21** 

Institute of Risk Management - Annual report and financial statements year ended 30 June 2025 



## **1.17 Fund Accounting** 

Funds received for a specified purpose are shown as restricted income in the Statement of Financial Activities. Any such income not spent at the year-end is shown as a restricted fund in the balance sheet. 

The Institute has unrestricted funds made up of membership subscriptions, income from educational activities and other income received or generated for its charitable purposes. These are available for trustees to utilise at their discretion and in line with the charity’s objects. 

Unrestricted funds which the trustees have agreed to set aside for a specific purpose are shown as designated funds on the balance sheet. 

## **1.18 Critical accounting estimates and areas of judgement** 

In the application of the Institute’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. 

The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements: 

The Institute makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the ageing profile of debtors and historical experience. See note 11 for the net carrying amount of the debtors and associated impairment provision. 

Provisions have been made for dilapidations based on current market dilapidations reports and will be reviewed on a half year basis.  These provisions are estimates and the actual costs and timing of future cash flows are dependent on future events. The difference between expectations and the actual future liability will be accounted for in the period when such determination is made. 

The annual amortisation charge for intangible and tangible assets is sensitive to changes in the estimated lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See notes 8 and 9 for the carrying amount of the fixed assets and for the useful economic lives for each class of asset. 

## **2 Income split** 

|The Group income was in the following geographic regions:<br>United Kingdom<br>Overseas|<br>**2025**<br>**£**<br>2024<br>£<br>**3,263,580**<br>3,179,131<br>**2,382,548**<br>2,053,693|
|---|---|
||**5,646,128**5,232,824|



All income is related to the supply of risk management services. 

**22** 

Institute of Risk Management - Annual report and financial statements year ended 30 June 2025 



## **3 Investment income** 

|**nvestment income**||
|---|---|
|Bank interest<br>Dividends received|**2025**<br>2024<br>**£**<br>**£**<br>**13,154**<br>9,618<br>**20,229**<br>55,990|
||**33,383**<br>65,608|



## **4 Net income for the year** 

||**2025**|2024|
|---|---|---|
||**£**|£|
|Net income for the year is stated after charging:|||
|Depreciation and amortisation of tangible and|**184,531**|153,543|
|intangible assets|||
|Auditor’s remuneration current year|**40,337**|31,450|
|Prior year under accrual/(over) accrual|**(7,226)**|(1,029)|
|Non audit services|**10,000**|11,948|
|Operating lease charges|**87,359**|152,435|



## **5 Total Expenditure** 

|**2025 Total Expenditure**<br>Education, qualifications,<br>Membership<br>Other charitable activities<br>Other trading activities|**Direct Costs**<br>**£**<br>**Support Costs**<br>**£**<br>**Total 2025**<br>**£**<br>523,719<br>1,779,642<br>2,303,361<br>51,324<br>326,085<br>377,409<br>16,784<br>11,791<br>28,575<br>1,055,530<br>1,885,542<br>2,941,072|
|---|---|
||1,647,357<br>4,003,060<br>5,650,417|



|**2024 Total Expenditure**<br>Education, qualifications,<br>Membership<br>Other charitable income<br>Other trading activities|**Direct Costs**<br>**£**<br>**Support Costs**<br>**£**<br>**Grants**<br>**£**<br>**Total 2024**<br>**£**<br>490,369<br>1,432,268<br>50,000<br>1,972,637<br>29,702<br>440,157<br>-<br>469,859<br>7,018<br>23,736<br>-<br>30,754<br>1,008,077<br>1,373,445<br>-<br>2,381,522|
|---|---|
||1,535,166<br>3,269,606<br>50,000<br>4,854,772|



During 2024 the Charitable company awarded a single grant of £50,000 to IRM Educational Foundation. There were no grant commitments outstanding at the year end. No grants were made in 2025. 

**23** 

Institute of Risk Management - Annual report and financial statements year ended 30 June 2025 



|**Support Costs**<br>People costs<br>Premises costs<br>IT & website<br>Depreciation<br>Governance<br>Other|**2025**<br>**£**<br>**2024**<br>**£**<br>2,918,303<br>2,214,926<br>244,986<br>381,786<br>261,011<br>210,246<br>92,230<br>38,904<br>60,358<br>62,466<br>426,172<br>361,278|
|---|---|
||4,003,060                 3,269,606|



## **6 Staff costs** 

|**Key management remuneration**|**2025**|2024|
|---|---|---|
||**£**|£|
|Total emoluments|**330,672**|258,956|



Included in key management remuneration above are the following amounts payable to two Trustees: 

- Stephen Sidebottom, in his role as a Chair: £32,625; 

- Ian Livsey, £254,332 which includes pension contributions of £11,470. This remuneration reflects his employment as CEO of IRM and is not for his work as a Trustee. 

All other Trustees were not remunerated for their services. The Institute reimbursed Mbodha Ltd £4,500 (2004: £3,000) in respect of the time Mariam Crichton spent acting as a director of IOR Enterprises Ltd. During the year the Institute also reimbursed 2 Trustees (2024: 3 Directors) a total of £2,298 (2024: £2,347) for out-of-pocket expenses relating to subsistence and travel incurred in carrying out the Institute’s business. 

|**Staff costs**<br>Wages andsalaries<br>Social securitycosts<br>Pensioncontributions<br>Consultancy fees and short-termcontractors|**2025**<br>2024<br>**£**<br>£<br>**2,121,312**<br>1,779,870<br>**249,213**<br>203,940<br>**98,412**<br>85,503<br>**176,587**<br>43,791|
|---|---|
||**2,645,524**<br>2,113,104|



The number of staff whose annual emoluments in the period fell within the following bands were: 

||**2025**|2024|
|---|---|---|
|£60,000 to £70,000|**1**<br>|2|
|£70,000 to £80,000|**2**<br>|2|
|£80,000 to £90,000|**1**<br>|-|
|£90,000 to £100,000|**1**<br>|1|
|£100,000 to £110,000|**-**<br>|1|
|£110,000 to £120,000|**-**|2|
|£130,000 to £140,000|**3**<br>|-|
|£200,000 to £220,000|**-**|1|
|£240,000 to £250,000|**1**|-|



**24** 

Institute of Risk Management - Annual report and financial statements year ended 30 June 2025 



The number of staff employed during the year was 35 (2024:35) .The average number of staff employed (FTE) during the year was 32 (2024: 35). 

## **7 Taxation** 

During the year the Institute became a registered charity. As a result, it is exempt from taxation on income and gains applied for charitable purposes. No corporation tax liability arises for the year. All charges disclosed relate to prior year adjustments in respect of periods before the Institute obtained charitable status. The wholly owned subsidiaries of the Institute will make Qualifying Charitable Donations of their taxable profits to the Institute, as their parent charity. As a result, no liability to corporation tax arises for the group. 

During the comparative period ended 30 June 2024 the group was not a registered charitable group and incurred total current tax of £47,706 and deferred tax of £17,102. This year a current tax charge of £213 reflects a prior period adjustment to the tax charge. A deferred tax credit is recorded of £55,591 reflecting the reversal of timing differences that are not expected to result in a future tax charge in the charitable group. 

## **8 Intangible assets – Group and Charitable company** 

|**Cost**<br>At 1 July 2024<br>Additions<br>**At 30 June 2025**<br>**Depreciation**<br>At 1 July 2024<br>Charge for the year<br>**At 30 June 2025**<br>**Net Book Value**<br>At 30 June 2024<br>**At 30 June 2025**|**Course**<br>**development**<br>**costs**<br>**Software**<br>**Website**<br>**development**<br>**CRM**<br>**Systems**<br>**TOTAL**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>845,839<br>147,555<br>232,107<br>378,804<br>1,604,305<br>26,410<br>5,603<br>-<br>41,730<br>73,743|
|---|---|
||872,249<br>153,158<br>232,107<br>420,534<br>1,678,048|
||700,256<br>126,529<br>232,107<br>259,517<br>1,318,409<br>92,300<br>10,255<br>60,331<br>162,886|
||792,556<br>136,784<br>232,107<br>319,848<br>1,481,295|
||145,583<br>21,026<br>-<br>119,287<br>285,896|
||**79,693**<br>**16,374**<br>**-**<br>**100,686**<br>**196,753**|



**25** 

Institute of Risk Management - Annual report and financial statements year ended 30 June 2025 



## **9 Tangible fixed assets – Group and Charitable company** 

|**Cost**<br>At 1 July 2024<br>Additions<br>Disposals<br>**At 30 June 2025**<br>**Depreciation**<br>At 1 July 2024<br>Charge for the year<br>Disposals<br>**At 30 June 2025**<br>**Net book value**<br>At 30 June 2024<br>**At 30 June 2025**|**Computer**<br>**equipment**<br>**Fixtures,**<br>**fittings and**<br>**equipment**<br>**Leasehold**<br>**improvements**<br>**TOTAL**<br>**£**<br>**£**<br>**£**<br>**£**<br>67,848<br>79,775<br>193,176<br>340,799<br>18,063<br>20,403<br>38,466<br>(67,848)<br>(67,848)|
|---|---|
||18,063<br>100,178<br>193,176<br>311,417|
||67,848<br>60,132<br>153,892<br>281,872<br>6,021<br>7,766<br>7,857<br>21,645<br>(67,848)<br>(67,848)|
||6,021<br>67,898<br>161,749<br>235,669|
||-<br>19,643<br>39,284<br>58,927|
||**12,042**<br>**32,280**<br>**31,427**<br>**75,749**|



## **10 Fixed Asset Investments** 

|**Group**<br>**Cost or valuation**<br>At 1 July 2024<br>Distributions capitalised<br>Disposals<br>Revaluations<br>**At 30 June 2025**<br>**Charitable company**<br>**Cost or valuation**<br>At 1 July 2024<br>Distributions capitalised<br>Revaluations and disposals<br>**At 30 June 2025**|Listed investments<br>£<br>1,311,427<br>9,511<br>(418,842)<br>(13,177)<br>**888,919**<br>Investment in<br>subsidiary<br>companies<br>Listed<br>investments<br>Total<br>£<br>£<br>£<br>3<br>1,311,427<br>1,311,430<br>9,511<br>9,511<br>(432,019)<br>(432,019)|Listed investments<br>£<br>1,311,427<br>9,511<br>(418,842)<br>(13,177)|
|---|---|---|
|||**888,919**|
||**3**<br>**888,919**<br>**888,922**||



**26** 

Institute of Risk Management - Annual report and financial statements year ended 30 June 2025 



## **Subsidiary undertakings** 

The Institute holds more than 20% of the share capital of the following companies: 

|**Company**|**Income**|**Expenditure**|**Surplus/**|**Net assets**|**Shares Held**||
|---|---|---|---|---|---|---|
||||**(deficit)**||||
|**Subsidiary**|**£**|**£**|**£**|**£**|**Class**|**%**|
|**undertakings**|||||||
|**IRM**|||||||
|**Trading**<br>**Limited**|2,366,844|(2,256,592)|110,252|668,751|100 ordinary<br>shares at £1|100|
|**IOR**|||||||
|**Enterprises**<br>**Limited**|221,649|(167,764)|53,885|292,143|100 ordinary<br>shares at £1|100|
|**IRM Advisory**|||||||
|**Services**|||||100 ordinary||
|**Limited**|166,573|(155,598)|10,975|11,044|shares at £1|100|
|**Institute of**||||||IRM controls|
|**Operational**<br>**Risk**|29,577|(23,085)|6,492|94,837|Company limited<br>by guarantee|right to<br>appoint and<br>remove|
|||||||directors|
|**IRM**|||||||
|**Educational**<br>**Foundation**|-|(7,001)|(7,001)|41,606|Charitable<br>company|IRM holds<br>more than 75%|
|||||||of voting rights|



The results of all these subsidiary entities have been included in these consolidated financial statements. All subsidiaries are registered in England and Wales with the registered office address at 80 Leadenhall Street, London. 

## **11 Debtors, amounts falling due within one year** 

|Trade debtors<br>Amounts due from group undertakings<br>Other debtors<br>Prepayments and accrued income|**Group**<br>**Charitable**<br>**company**<br>**2025**<br>2024<br>**2025**<br>2024<br>**£**<br>£<br>**£**<br>£<br>**471,201**<br>451,121<br>**228,081**<br>232,620<br>**-**<br>-<br>**102,136**<br>49,999<br>**619,403**<br>472,831<br>**558,663**<br>468,439<br>**165,934**<br>222,314<br>**146,640**<br>177,962|
|---|---|
||**1,256,538**<br>1,146,266<br>**1,035,520**<br>929,020|



There were Group impairment provisions for bad debt at the year-end of £200,420 (2024: £460,586) 

**27** 

Institute of Risk Management - Annual report and financial statements year ended 30 June 2025 



## **12 Creditors: due within one amounts falling year** 

|Tradecreditors<br>Amounts due to group undertakings<br>Other creditors<br>Taxation and socialsecurity<br>Deferredincome<br>Accruals|**Group**<br>**Charitable**<br>**company**<br>**2025**<br>2024<br>**2025**<br>2024<br>**£**<br>£<br>**£**<br>£<br>**273,872**<br>195,105<br>**148,336**<br>238,364<br>**-**<br>-<br>**746,876**<br>823,858<br>**12,234**<br>-<br>**12,234**<br>-<br>**142,219**<br>145,905<br>**131,078**<br>126,116<br>**1,634,317**<br>1,682,381<br>**1,496,150**<br>1,281,936<br>**767,392**<br>753,444<br>**190,048**<br>263,572|
|---|---|
||**2,830,034**<br>2,776,835<br>**2,724,722**<br>2,733,846|



Deferred income represents amounts received for membership, qualifications and training to be supplied in the following year and will be recognised as income in that financial year. 

|**Deferred income reconciliation:**<br>At 1 July 2024<br>Released during the year<br>Deferred during the year<br>**At 30 June 2025**|**£**<br>**£**<br>1,682,381<br>1,659,971<br>(1,682,381)<br>(1,659,971)<br>1,634,317<br>1,682,381|
|---|---|
||**1,634,317**<br>**1,682,381**|



## **13 Provision for liabilities - Group and Charitable company** 

|At 1 July 2024<br>Movements in provision for the year<br>**At 30 June 2025**|**Dilapidations**<br>**Deferred**<br>**taxation**<br>**Total**<br>**£**<br>**£**<br>**£**<br>55,842<br>55,591<br>111,433<br>(45,732)<br>(55,591)<br>(101,323)|
|---|---|
||**10,110**<br>**-**<br>**10,110**|



As part of the Group’s property leasing arrangements there is an obligation to return the property to an agreed condition at the end of the lease.  The cost is charged to the income statements as the obligation arises.  The provision is expected to be utilised when the lease terminates. 

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## **14 Share capital** 

The Institute does not have a share capital and is limited by guarantee. In the event of the Institute being wound up  the maximum amount which each Member is liable to contribute is £1. 

## **15 Financial commitments** 

At 30 June 2025 the Group was committed to making the following payments under operating leases. 

|||**2025**|2024|
|---|---|---|---|
|||**£**|£|
|**Land**|**and buildings**|||
|Due:|Within one year|**67,333**|84,186|
||Between two and five years|**255,627**|275,745|
||After five years|**-**|-|
|**Other**|**equipment**|||
|Due:|Within one year|**5,333**|2,577|
||Between two and five years|**5,950**|1,933|
||After five years|**-**|-|
|**Total**||**334,243**|**364,441**|



## **16 Movements in Funds** 

Reconciliation of Movements in Unrestricted Funds 

Charitable company – current year 

|**Fund**<br>**General fund**<br>**Designated fund**<br>**Total unrestricted**|**At 1 July 2024**<br>**Income 2025**<br>**Expenditure 2025**<br>**At 30 June 2025**<br>741,867<br>4,457,693<br>(4,558,667)<br>640,893<br>5,713<br>–<br>–<br>5,713|
|---|---|
||747,580<br>4,457,693<br>(4,558,667)<br>646,606|



Charitable company – previous year 

|**Fund**<br>**General fund**<br>**Designated fund**<br>**Total unrestricted**|**At 1 July 2023**<br>**Income 2024**<br>**Expenditure 2024**<br>**At 30 June 2024**<br>476,641<br>4,227,340<br>(3,962,114)<br>741,867<br>5,713<br>–<br>–<br>5,713|
|---|---|
||482,354<br>4,227,340<br>(3,962,114)<br>747,580|



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## Group – current year 

|**Fund**|**At 1 July 2024**|**Income 2025**|**Expenditure 2025**|**At 30 June 2025**|
|---|---|---|---|---|
|**General fund**|1,674,350|5,723,834|(5,650,205)|1,747,979|
|**Designated fund**|5,713|–|–|5,713|
|**Total unrestricted**|**1,680,063**|**5,723,834**|**(5,650,205)**|**1,753,692**|
|roup – previous year|||||
|**Fund**|**At 1 July 2023**|**Income 2024**|**Expenditure 2024**|**At 30 June 2024**|
|**General fund**|1,267,500|5,376,428|(4,969,578)|1,674,350|
|**Designated fund**|5,713|–|–|5,713|
|**Total unrestricted**|**1,273,213**|**5,376,428**|**(4,969,578)**|**1,680,063**|



Group – previous year 

The General Fund represents the charitable company’s free reserves available for day-to-day operations. All unrestricted income and expenditure during the year has been accounted for within the general fund, resulting in a closing balance of £640,893 (Charitable company) and £1,747,979 (Group). These balances reconcile to the Statement of Financial Position as at year end. 

The Designated Fund of £5,713 represents amounts set aside by the trustees for prizes to the Institute’s top student from countries within Asia, Australasia or Africa. This fund remained unchanged during the year, with no income, expenditure or transfers. The balance will continue to be held for its intended purpose until such time as the trustees authorise its use. 

## **17 Allocation of Net Assets** 

Charitable company - current year 

|**Fund**<br>**General fund**<br>**Designated fund**<br>**Total unrestricted**|**Fixed assets and**<br>**investments**<br>**Net current**<br>**assets/(liabilities)**<br>**Provisions for**<br>**liabilities**<br>**At 30 June 2025**<br>1,161,424<br>(510,421)<br>(10,110)<br>640,893<br>-<br>5,713<br>–<br>5,713<br>747,580<br>(504,708)<br>(10,110)<br>646,606|
|---|---|



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Institute of Risk Management - Annual report and financial statements year ended 30 June 2025 



Charitable company - previous year 

|**Fund**|**Fixed assets and**|**Net current assets/**|**Provisions for**|**At 30 June 2024**|**At 30 June 2024**|
|---|---|---|---|---|---|
||**investments**|**(liabilities)**|**liabilities**|||
|**General fund**|1,656,253|(802,953)|(111,433)||741,867|
|**Designated fund**|-|5,713|–||5,713|
|**Total unrestricted**|1,656,253|(797,240)|(111,433)||747,580|
|roup – current year||||||
|**Fund**|**Fixed assets and**|**Net current assets/**|**Provisions for**|**At**|**30 June 2025**|
||**investments**|**(liabilities)**|**liabilities**|||
|**General fund**|1,161,421|596,668|(10,110)||1,747,979|
|**Designated fund**|-|5,713|-||5,713|
|**Total unrestricted**|**1,161,421**|**602,381**|**(10,110)**||**1,753,692**|



## Group – current year 

## Group – previous year 

|**Fund**<br>**General fund**<br>**Designated fund**<br>**Total unrestricted**|**Fixed assets and**<br>**investments**<br>**Net current**<br>**assets/(liabilities)**<br>**Provisions for**<br>**liabilities**<br>**At 30 June 2024**<br>1,656,250<br>129,533<br>(111,433)<br>1,674,350<br>-<br>5,713<br>-<br>5,713|
|---|---|
||**1,656,250**<br>**135,246**<br>**(111,433)**<br>**1,680,063**|



The Designated Fund of £5,713 represents amounts set aside by the trustees for prizes to the Institute’s top student from countries within Asia, Australasia or Africa. This fund remained unchanged during the year, with no income, expenditure or transfers. The balance will continue to be held for its intended purpose until such time as the trustees authorise its use. 

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## **18 Related party relationships and transactions** 

The charitable company is the parent company of five subsidiary undertakings. 

During the year, the charitable company provided a range of intra group services to its subsidiaries, including marketing, management and administrative support. Charges in respect of these services came to a total of £1.16m (2024: £1.34m), analysed as follows: 

|Company|2025|2024|
|---|---|---|
||£|£|
|IRM Trading Ltd|958,184|1,179,758|
|IRM Advisory Services Ltd|54,053|52,218|
|IOR Enterprises Ltd|152,898|117,444|
|Institute of Operational Risk|660||



Companies of which Trustees are employees sometimes purchase Group services on normal third-party terms. 

There were no other related party transactions in the year (2024: no other related party transactions) except for the Trustee remuneration and expenses disclosed in note 6. 

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## **19 Comparative Statement of Financial Activities** 

**(Incorporating the Income and Expenditure Account)** 

|**Notes**<br>**Income from :**<br>**Charitable Activities**<br>Education<br>Membership<br>Other charitable activities<br>**Other trading Activities**<br>**Total income**<br>2<br>**Expenditure on:**<br>Charitable activities<br>Other trading activities<br>Other expenditure - taxation<br>7<br>**Total expenditure**<br>5, 6<br>Net (expenditure)/income before investment gains<br>Net gains on investments<br>4, 9<br>**Net movement in funds**<br>Reconciliation of funds:<br>Total funds brought forward<br>**Total funds carried forward**<br>17|**Unrestricted Funds 2024**<br>**£**<br>Unrestricted Funds<br>2023<br>£<br>2,301,813<br>1,884,316<br>669,617<br>606,349<br>13,574<br>51,865<br>2,247,820<br>1,706,489|
|---|---|
||**5,232,824**<br>**4,249,019**<br>(2,473,250)<br>(2,588,934)<br>(2,431,522)<br>(1,655,691)<br>(64,806)<br>(37,834)|
||**(4,969,578)**<br>**(4,282,459)**|
||**263,246**<br>**(33,440)**<br>143,604<br>81,269|
||**406,850**<br>**47,829**|
||406,850<br>47,829<br>1,273,214<br>1,225,385|
||**1,680,064**<br>**1,273,214**|



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Institute of Risk Management - Annual report and financial statements year ended 30 June 2025 



THE
INSTITLrrE OF
OPERATIONAL RISK
Part of the IRM Group
irm