Risk involves any insecurity regarding a prospective incident with the probability to expose an institution’s potentiality to meet its mission and goals. Numerous incidents exhibits the probability to expose a nonprofit organizations essential property and resources to risk, which may in turn undermine its competency to offer the intended services.
The key assets and resources often range from people, property, donations, and proceeds. Hence, risks that are visible in these scenarios involves damage to property for organization one, injury risk for organization two as players and supporters might incur injuries, while the third Nonprofit Organization (NGO) faces both cash and asset fraud as it relies on a group of largely unfamiliar businessmen to serve themselves and remit payment, which is also the highest risk of all as per my rationale. The fourth organization faces a high risk to its reputation with a number of normally volatile ex-convicts among its personnel ranks, as the fifth outfit faces the risks of running out funds or having inadequate funds to conduct the event.
An institution that tailors its risk intervention strategies towards limiting or evading risk may not be able to adequately exploit the chances to develop the entities resources, provide adequate services, and entice progressively augmenting number of sponsors, advocates along with volunteers. However, NGO’s must evaluate the most probable or vulnerable risks against their institutions, besides taking all the other possible risks into consideration in order to develop a more reliable approach to risk.
NGOs in a country with high and intense economic challenges obviously faces more crises in regard to risk management, as compared to an NGO in nation that pardons wrongdoings and accords second chances to its citizens. Nonprofits in a country with intense competition are likely to face all manners of risk due to economic pressure on the surrounding communities, and offenders are often more clinical knowing that they might never be accorded a second chance. They typically face a harder challenge in eliminating the risks.