Operating Reserves

A financial measure. Operating Reserves can include cash, investments, and accounts receivable. They represent the accumulation of unrestricted surpluses available for use at the discretion of an organisation’s board. Building and maintaining an Operating Reserve helps to ensure that sufficient funds are available to manage cash flow on a day-to-day basis and maintain financial flexibility in the event of an unanticipated loss of revenue or increase in expenses.

BPIR Categories

11.1.4 Manage cash flow
15.3.1 Financial performance
15.6.1 Vision/leadership processes