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for unexpected risks : you can do a self-risk assessment , hire a risk management employee , or outsource the risk management function all together . Of course electing to do a self-risk assessment is the least costly , but remember this may not be the best for your nonprofit . That said , if you decide to take the self-risk assessment route , here are some tips :
1 . Do some online research on what the most common type of risks are for nonprofits .
2 . Prepare some type of check list for identifying potential risk areas .
3 . Using the check list conduct an initial risk assessment on your nonprofit .
4 . Contract with experts in those areas identified as potential risk areas on your check list , so that you can address those risks , or at least prepare for those risks if they should happen .
5 . Prepare a written risk plan for future use .
6 . Conduct another risk assessment at least yearly , or whenever there are significant changes to the nonprofit .
Being prepared for the unexpected in the nonprofit world is important , being prepared in life in general is also important . Don ’ t let unexpected risks take your nonprofit , or you , down because you were not aware or prepared for these types of events . The best way to address this issue is to find a business that offers operational risk management assessments , awareness , preparation , and planning . Operational risk management will afford you the best overall risk assessment for your investment . Make sure that you add operational risk management to your nonprofit startup plan , or if your nonprofit is up and running , make sure you add it to your operational plan .
This article was written by Ralph McNamara , President / CEO of REM Business Consulting , LLC . REM Business Consulting ( www . rembusinessconsulting . com ) provides risk management services to businesses and nonprofits .
THE PHILANTREPRENEUR JOURNAL | JULY 2016