The Board and Risk Analysis
In these difficult economic times, boards must be more careful than ever to assure themselves that the organization does not harm itself by taking actions that have a high probability of causing it damage. Regular and formal risk analysis is required but, unless it is done well, it can cause problems of its own by inhibiting innovation and drawing the board into micro-managing. See these resources on how to conduct useful risk analyses.
-
Best and shortest introduction to the subject.Imagine Canada and The Social Planning Council for the North Okanagan -
Check this site from an organization specializing is risk analysis. It outlines the main areas of risk and its 'tool's' section contain a variety of useful checklists and pointers for carrying out your own risk analyses.The Nonprofit Risk Management Center -
Here is a new checklist for assessing risk from the Charities Commission of Britain. Very comprehensive.The Charities Commission of the United Kingdom -
Another useful booklet from Imagine Canada, this time with a tool to help you get started developing a risk management plan for your organization.Imagine Canada -
A useful review of legal risks the board should know about from one of Canada's leading law firms specializing in nonprofit sector law.Carter and Associates -
This is the report of a 2002 research study of risk management practices in B.C. nonprofit organizations but most of its recommendations are still valid today.United Community Services Coop -
This paper by noted nonprofit sector scholar Dennis Young provides an excellent conceptual model for understanding risk and how it is managed. His recommendations on how to do it better are outstanding.Andrew Young School of Policy Studies, Georgia State University