How do we better identify and manage risk?
We live in a more complex and sophisticated world than just a few years ago, and legislation is becoming more onerous. The willingness to take legal action potentially impacting on your organisation’s financial security and reputation is growing, and an independent review of risk is recommended at least every three years.
The AS/NZS ISO 31000:2009 Risk Management – Principles and Guide offers an excellent perspective on how to manage risk including:
Practical measures that organisations can take to help identify and manage risk include:
What’s the starting point for a building and property review?
Property is usually the largest asset on a not-for-profit’s balance sheet and understandably the Board will want to exercise caution. The starting point is being clear on your objectives which may take some time to establish.
Some of the key questions consider:
How do we take our organisation to the next level?
First of all, check that the drivers for change are more compelling than those that keep your organisation in its current groove, or you may not achieve sufficient traction.
Develop a firm understanding of the current and future opportunities for your organisation, agree on what an appropriate future model for your organisation would be and develop a plan to help you transition your organisation.
Your future model needs to be based on a sound understanding of the marketplace, with rigorous financial forecasting underpinned by market research. Evidence is needed that future members or donors will access your services and products via specific channels for a particular price before an investment is made.
A plan to work with key stakeholders leading to Board endorsement is critical, as are the following:
About the expert
Frank Spranger works with not-for-profit organisations including transitioning them into the future, harnessing opportunities in changing marketing, performing 360 degree revenue reviews, developing feasibilities and business cases, executing risk reviews, creating commercial ventures and partnerships,and asses building and property options. He has worked with not-for-profits including The Australasian Fire and Emergency Service Authorities Council, the Australian Dental Association, the Australian Medical Association and Oxfam. To enquire about these services email frankspranger@gmail.com or call 0408 336 363
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