Value protection and value creation
Pesh Framjee explains how good risk management can deliver added value...
Risk management in the non profit sector has been around for some time but new thinking is moving towards how to use risk management to add real value. Successful organisations do this by scrutinising missed opportunities and recognising the need to take risks. They are not risk averse nor do they necessarily have to take greater risks but they have a better understanding of what the risks are and how best to manage them. That means fewer control failures, increased likelihood of achieving objectives and improved stakeholder value. Supporters and funders may be indifferent about specific risk management models or methods but they will enhance their support for an organisation if it is able to demonstrate it does a better job of managing its risks to create value
Author: Pesh Framjee
Pesh Framjee Pesh Framjee, Head of the non-profit unit at Crowe Clark Whitehill is Special Adviser to CFDG and is a member of the Charity SORP Committee. He has worked with charities for over 35 years and advises charities on financial, governance and strategic matters.
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