Financial RatingRegeneration Through Education Limited (RTE) is a charitable organization with the charitable aims of providing adult education courses in a deprived area of ​​Portshampton. Also, try to provide discounted room rental facilities for clubs in the same area. This charity recently received a regeneration grant which enabled it to fund the construction of a purpose-built complex of conference rooms and facilities on a site adjacent to its current location. This document addresses some of the questions that RTE has raised regarding financial risks in transactions, dealing with filing requirements and seeking reporting, among other things. Question 1: Advance payments to suppliers This first question has four main issues and first of all there is a substantial sum of money or deposit to be paid on the furniture and fittings of the new building. Secondly, the supplier requesting this large deposit is unknown to RTE and has no history with it. Third, this scenario creates the possibility of financial risks occurring. Finally, if the transaction goes through, there will be cash flow implications arising from the disbursement of the large deposit into the charitable fund's reserves. The biggest among these issues is the possibility of financial risks and how they can be minimized. This part seeks to explain how RTE can minimize the effects of financial risks due to this transaction. According to Horcher (2005, pp. 2-3), financial risks arise through countless transactions, which are financial in nature. This means that whenever a financial transaction occurs, there are high chances of financial risks occurring. These transactions include sales and purchases, loans and...... middle of paper ......listed company legislation, Oxford UP, New York, NY.Dawes, AP 2009, Charity accounting: A practice's guide to the charities sorp, 4th edition, Intl Specialized Book Service Inc, Portland, OR.Fabozzi, FJ 2009, Financial Risk Management, John Wiley & Sons, Hoboken, NJ.Heidenbauer, S 2011, Charity Crossing Borders: the influence of fundamental freedoms on donor charity and taxation in Europe, Wolters Kluwer, Bedfordshire.Horcher, KA 2005, Essentials of Financial Risk Management, John Wiley & Sons, Hoboken, NJ.Madura, J 2010, International Financial Management , 10th edition, South-Western Cengage Learning, Mason , OH.Palmer, P & Randall, A 2002, Financial management in the voluntary sector: new challenges, Routledge, New York, NY.Rezaee, Z 2001, Financial institutions, evaluations, Mergers and Acquisitions: The Fair Value Approach, John Wiley & Sons, Hoboken, NJ.