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How to Develop a Risk Management Strateg

Before you commence identifying and assessing risk, it is important to agree the basics of how you are going to ensure that risks to your organisation are identified and managed.

What Is A Risk Management Strategy?

A risk management strategy provides a structured and coherent approach to identifying, assessing and managing risk. It builds in a process for regularly updating and reviewing the assessment based on new developments or actions taken. A risk management strategy can be developed and implemented by even the smallest of groups or projects or built into a complex strategy for a multi-site international organisation.

Managing Risks

Management Committees are responsible for safeguarding the organisation, its assets and third parties, including staff and volunteers. This requires being aware, not only of the current activities and circumstances of the organisation, but also being mindful of what could happen in the future in order to minimise any potential negative impact on the organisation. Assessing and managing these risks is key for any Management Committee wishing to demonstrate effective management and accountability.

Monitoring & Evaluation

The Management Committee is responsible for monitoring all areas of the organisation’s activity, and for evaluating it to determine the impact, quality and effectiveness of its work.

Demonstrating Accountability

The Management Committee is not only required to be accountable, but to be able to demonstrate this to stakeholders through ensuring that appropriate systems and procedures are in place. By doing so, they reduce their risks of personal liability should things go wrong.

Facing Closure

This must be the worst situation for Management Committee members (as well as for everyone else who is part of the organisation). Unfortunately, closure does happen. Sometimes organisations are forced to close down because their funding has been cut, and no substitute money can be found.

Strategic Options In Managing Change

Thinking strategically as a Management Committee involves analysing the organisation’s internal and external environment and being responsive to change. Sometimes the challenges which these present will require making some difficult decisions regarding activities, services or the overall role or function of the organisation. In these circumstances, the committee must be able to stand back and take a strategic view of the options open to them.

Managing Change & Managing Stakeholder

The Management Committee may find that changes are required which affects part or all of the organisation, including staff, volunteers, service users and other stakeholders. Many individuals and groups find change a threatening and unsettling process. Unless this is recognised and effectively managed, the negative impact of change can be significant, resulting in a loss of morale, the departure of Management Committee and staff members, or even reduced public support.

Managing Change Effectively

Every organisation will at some point face change. These changes may be relatively small, or they may impact greatly across the organisation. They may be as a result of internal developments (e.g. loss of key staff or Management Committee expertise) or external developments (e.g. a reduction in funding sources).

How To Develop Policies And Procedures

Policy development involves identifying need, gathering information, drafting, consulting and review.

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