risk management in philanthropy - winkelstein
TRANSCRIPT
CORE Group 2016
RISK MANAGEMENT IN PHILANTHROPY
Who’s in the Room?
Have you ever…?
POLL
STATE OF RISK IN PHILANTHROPY
83% Don’t Budget
76% Don’t Ask
1 in 5 Projects
65% Don’t have Policies
50% Reduce Scope
18% Projects
Terminate
35% Find Alternate
Funds
48% Aren’t Comfortable
THE COMMONS
DEFINING RISK
Risk is the l ikelihood that an event will occur which will cause some type of undesirable effect.
Anywhere - Anytime Predictable – Unpredictable
Controllable – Outside of Control Internal – External
EXAMPLES OF RISK
Probability of Occurrence
High Moderate Low
Seve
rity
of H
arm
Severe
Moderate
Low
Risk Culture = Subjective
RISK CULTURE V. RISK MANAGEMENT
Risk Management = Objective
Risk Culture 3 tools How to: determine, codify, live your risk profile
Risk Management 7 tools Contingency Budgeting RFPs & Application Forms M&E / Reporting Governance Funder-Grantee Relationship
THE TOOLKIT
ACTIVITY #1: YOUR RISK PROFILE
Risk Management in RFPs Risk Management in M&E
Discussion Question: If adopted by your funders, what parts of these tools would be a blessing or a burden for non-profits to implement/comply with?
Why?
ACTIVITY #2: BLESSING OR BURDEN?
Setting Aside Contingency Funding Implementing Non‐Financial Risk Mitigation Strategies
Questions for Discussion 1. What aspects are useful or not? Why?
2. Are there things you could change to apply to NGO context? 3. What additional tools would be necessary for non-profit use?
ACTIVITY #3: ET TU NGO?
END
The Risk Assessment Cycle
Risk Culture How to Talk About – and Determine – Your Appetite for Risk
How to Create a Risk Profile Statement Template How to Incorporate Risk into Your Organizational Culture
Risk Management How to Build Effective Funder-Grantee Relationships How to Incorporate Risk Management into RFPs and Grant
Application Forms How to Incorporate Risk Management into Monitoring and
Evaluation How to Incorporate Risk Management into Governance Practices How to Set Aside Contingency Funding How to Build Contingency Protocols How to Implement Non-Financial Risk Mitigation Strategies
RISK TOOLKIT
RISK IN RFP / M&E
Written: Possible questions that lend themselves to written responses
include: Specify the top three risks you may encounter during the
course of this project, the steps you will take to mitigate these risks, and how we (as the funder) could help.
What could happen to derail the intended impact of your project?
What risks have you encountered implementing similar projects in the past, and how did you respond?
