Management of risk
Who is responsible for managing risk?
For incorporated charitable organisations, the Board of trustees manages risk and oversees the organization. For unincorporated community groups, the executive committee member have that responsibility.
- Board members work with management and staff to manage the risk.
- Board members are all liable for decision making and risk taken.
Examples of the impact of risk:
- loss of a major source of funding
- unsuccessful fundraising projects
- failure of a project or initiative
- inadequate response to emergencies
- programs and services no longer in demand
- excessive cost of human and other resources
- loss and theft of information assets
- inability to perform functions that depend on technology
Why do we need to manage risks ?
- Risk Management protects and adds value to the organisation and it’s stakeholders through supporting the organisation’s objectives.
- It should be about the management, not avoidance of risk
- It should help to prioritise work in a fast moving context
How do you manage risks?
By identifying, assessing, and working to mitigate (lessen the consequences of) risks in your organisation’s work
Risk management includes: organisational culture, processes and structures that help you manage the organisation
Risk management processes: systematic policies, procedures and practices, and written guidelines that help you ask the right questions and take the most effective steps
Conclusion!
- To manage risk you have to have appropriate processes in place
- Board and staff work to identify risks and consequences
- Follow tested practices and protective measures to manage the risk
