Managing Nonprofit Risks
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Transcript of Managing Nonprofit Risks
Managing Risk for Your Nonprofit
Best Practices, Policies & Procedures
Presenter:Peter Andrew, CEO,
Council Services Plus272 Broadway
Albany, NY 12204877.501.4277, Ext 125
www.councilservicesplus.com
Why Manage Risk?
• Increased Accountability• Attract Donors• Prevent/Reduce Loss
– Prevent Harm– Cost and Time
• Lower Insurance Cost
An Ounce of Prevention...
• Areas of Risk Management thatCan Save You Money– Operational– Financial– Governance
An Ounce Of Prevention…
• Risk Management Resources for Your Nonprofit– nonprofitrisk.org– rims.org– riskinsitute.org – Your Broker– Your Insurance Carrier
Operational Risk
• Things we can “See and Touch” (People & Programs)
• Tends to be easiest place to start
• Word of Caution
Financial Risk
– Internal Controls• Auditors and Forensics
–Theft • Why?• Who?
–Financial Statements–Economic Conditions
Governance Risk
• One of the tougher areas– BoD’s perceived as smart,
capable, honest & competent
– Duties and Responsibilities– Immunity (?)
Your Survival Kit For Risk Management
• Excellent Communicators• Excellent Contacts• Be Up-To-Date on The
Issues– National Newspaper– National News Magazine– Local News Source
Your Survival Kit For Risk Management
• Imaginative/Strategic Thinking– Conceive the ‘worst’ and ‘best’
• Solicit & Maintain A Broad & Deep View of Your Organization
• Seek New Knowledge – Try to know what you don’t know &
more importantly, what you think you don’t need to know!
Identify Risk• What is the role of the Risk Manager?
• What are the Goals of Risk Management?
• The Risk Management Policy Statement.
• Creating a Risk Management Committee.
Evaluate Risk
• Estimate the Frequency and Severity of each Risk Exposure– High/High
– Low/High
– High/Low
– Low/Low
Implement Risk ManagementTechniques
• Decide how your Nonprofit will handle the
Risk (Avoidance, Modification, Retention,
Etc)
• Decide on Actions and Policy
• Communicate Plan
– Fast or Slow?
Monitor and Update
• Review at Least Annually– Track changes and document
• The Review Process– What can go wrong?– What will we do to prevent harm?– If something happens, What will we do?
Notes for the Road
• Be Calm In Crisis• Be Fearless In Your Pursuit of
Risk • Where Principle & Planning Are Where Principle & Planning Are
Clear…Clear…Decision Making Is EasyDecision Making Is Easy