As stewards for charities, boards of nonprofits must take steps to evaluate and minimize risk. A risk assessment allows you to identify and rank the risks your organization faces, including their likelihood of occurring and impact on operations. You can make risk logs or scenario planning to prioritize your risks, and then make educated decisions on the best way to prevent, reduce, or eliminate them.

Nonprofits face unique difficulties in assessing and managing risk. While for-profit companies have similar concerns, including employee training and reducing liability, nonprofits must also be vigilant about safeguarding donors’ contributions of both time and money. Data breaches, funding shortages and political turmoil can be as real for nonprofits as for for-profit companies.

This article provides a three-step method to assist you in moving from reactive to pro-active safeguarding your mission in the long run. Whatever your organization’s size or expertise, the essential steps are the same.

Begin by identifying the risk that your non-profit organization faces. This can include everything from a decreasing reserve ratio to how your staff manages their passwords. During this time it is important to not let any department go under your nose including finance and accounting; IT as well as donor relations, engineering and human resource management and public relations. Consider what a negative event might look like for each of these areas, including costs, schedules and projects and long-term campaign. Then, evaluate the probability of each danger and how much damage could be incurred if it happens.

https://boardroomideas.info/how-to-reap-tangible-business-benefits-from-esg-strategy-development/