Organisations sometimes shudder at the thought of Risk Management. ‘Too hard’, ‘not core business’, ‘don’t really understand it’ are common concerns, when I talk to groups about managing their risks. But it doesn’t have to be like that! By following some simple steps, any group can easily manage their risks.
Step 1 – Identify your risks: Look at what problems have occurred in the past – these will highlight risks you already know about. Then have a brainstorming session to identify other risks that have not yet become a problem.
Step 2 – Assess your risks: Once you feel you have a pretty thorough list of the risks your organisation faces, consider two things for each risk:
- How likely is it that the risk will cause a problem?
- If it did turn into a problem, how serious would it be?
A Risk Management Matrix (plenty of examples on the internet) is a simple table that helps you weigh up these two considerations, and come up with a priority rating for each risk.
That way you know which risks to tackle first.
Step 3 – Control your risks: Always aim to eliminate risks altogether. But sometimes this might not be possible. If that is the case, work your way down through a ‘hierarchy of controls’ (which you will also find more about on the internet) until you are able to find a way to deal with each of your risks.
Keep records of everything you have done to identify, assess and control your risks. This is important if you ever need to prove you have actually gone through a risk management process.
And finally, make sure you go through this process regularly as the risks you face can change over time.
You can download this Blog Post as a tip sheet by clicking here:Tip Sheet_ Risk Management for Community Groups 02 Sept 2014
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