For many charities and schools risk management is considered to be a compliance activity although many might argue that we think about risk daily in how we operate. How effective is our risk management? I believe that if we consider these 4 areas it will reveal how effective our risk management really is? Looking at the risks in our risk register
- Have we identified the risk, the impact on the organisation and what would cause it? Risks are often not understood well enough to enable them to be managed properly whether that is preventing the cause or limiting their impact.
- What are the controls identified controlling? Are they there to prevent the risk occurring or limit the damage caused?
- How do we classify risks? Are we classifying risks so that they make sense in our organisation aligning to activities and objectives or are they aligned to recommended reporting guidelines?
- Have we identified the risks that will truly break our organisation? Are these being managed effectively even if on first sight they appear to be out of our control? In a series of articles over the coming weeks I am going to be sharing with you my thoughts on why these questions are important and how we might address them. Do call if you would like to start the conversation earlier.