Risk Management in Philanthropy - Winkelstein

1. CORE Group
2016
RISK MANAGEMENT IN
PHILANTHROPY

2.  Who’s in the Room?
 Have you ever…?
POLL

3. 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

4. THE COMMONS

5. DEFINING RISK
Risk is the likelihood that an event will occur which will cause
some type of undesirable effect.
Anywhere - Anytime
Predictable – Unpredictable
Controllable – Outside of Control
Internal – External

6. EXAMPLES OF RISK
Probability of Occurrence
High Moderate Low
SeverityofHarm
Severe
Moderate
Low

7.  Risk Culture = Subjective
RISK CULTURE V. RISK MANAGEMENT
 Risk Management =
Objective

8. 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

9. ACTIVITY #1: YOUR RISK PROFILE

10.  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?

11.  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?

12. END

14. The Risk Assessment Cycle

15. 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

16. 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?