The document discusses best practices for managing risk in nonprofits. It identifies key areas of risk like operational, financial, and governance risks and recommends establishing a risk management committee to identify risks, evaluate their potential impact, and implement strategies. Effective risk management can help nonprofits increase accountability, attract donors, prevent losses, and potentially lower insurance costs through better prevention and planning. The document stresses the importance of ongoing review and updating of risk management policies and plans.

1. 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

2. Why Manage Risk? Increased Accountability Attract Donors Prevent/Reduce Loss Prevent Harm Cost and Time Lower Insurance Cost

3. An Ounce of Prevention... Areas of Risk Management that Can Save You Money Operational Financial Governance

4. An Ounce Of Prevention… Risk Management Resources for Your Nonprofit nonprofitrisk.org rims.org riskinsitute.org Your Broker Your Insurance Carrier

5. Operational Risk Things we can “See and Touch” (People & Programs) Tends to be easiest place to start Word of Caution

6. Financial Risk Internal Controls Auditors and Forensics Theft Why? Who? Financial Statements Economic Conditions

7. Governance Risk One of the tougher areas BoD’s perceived as smart, capable, honest & competent Duties and Responsibilities Immunity (?)

8. 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

9. 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!

10. 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.

11. Evaluate Risk Estimate the Frequency and Severity of each Risk Exposure High/High Low/High High/Low Low/Low

12. Implement Risk Management Techniques Decide how your Nonprofit will handle the Risk (Avoidance, Modification, Retention, Etc) Decide on Actions and Policy Communicate Plan Fast or Slow?

13. 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?

14. Notes for the Road Be Calm In Crisis Be Fearless In Your Pursuit of Risk Where Principle & Planning Are Clear… Decision Making Is Easy