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Managing Nonprofit Risks

Date post: 12-Jul-2015
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Managing Risk for Your Nonprofit Best Practices, Policies & Procedures Presenter: Peter Andrew, CEO, Council Services Plus 272 Broadway Albany, NY 12204 877.501.4277, Ext 125 www.councilservicesplus.com
Transcript
Page 1: 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

Page 2: Managing Nonprofit Risks

Why Manage Risk?

• Increased Accountability• Attract Donors• Prevent/Reduce Loss

– Prevent Harm– Cost and Time

• Lower Insurance Cost

Page 3: Managing Nonprofit Risks

An Ounce of Prevention...

• Areas of Risk Management thatCan Save You Money– Operational– Financial– Governance

Page 4: Managing Nonprofit Risks

An Ounce Of Prevention…

• Risk Management Resources for Your Nonprofit– nonprofitrisk.org– rims.org– riskinsitute.org – Your Broker– Your Insurance Carrier

Page 5: Managing Nonprofit Risks

Operational Risk

• Things we can “See and Touch” (People & Programs)

• Tends to be easiest place to start

• Word of Caution

Page 6: Managing Nonprofit Risks

Financial Risk

– Internal Controls• Auditors and Forensics

–Theft • Why?• Who?

–Financial Statements–Economic Conditions

Page 7: Managing Nonprofit Risks

Governance Risk

• One of the tougher areas– BoD’s perceived as smart,

capable, honest & competent

– Duties and Responsibilities– Immunity (?)

Page 8: Managing Nonprofit Risks

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

Page 9: Managing Nonprofit Risks

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!

Page 10: Managing Nonprofit Risks

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.

Page 11: Managing Nonprofit Risks

Evaluate Risk

• Estimate the Frequency and Severity of each Risk Exposure– High/High

– Low/High

– High/Low

– Low/Low

Page 12: Managing Nonprofit Risks

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?

Page 13: Managing Nonprofit Risks

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?

Page 14: Managing Nonprofit Risks

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


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