Spokes | Resources for Nonprofits

Empowering nonprofits to achieve their missions.

Find Us On Social Media:

FacebookLinkedIn
  • About
    • History of Spokes
    • Staff & Board of Directors
    • Frequently Asked Questions
  • Membership
    • Membership Benefits
    • Our List of Members
    • What Members Are Saying
    • Member Success Stories
  • Services
    • Post a Job
    • Starting a Nonprofit
    • Other Resources
  • Support Spokes
    • Our Generous Donors
  • Login
  • Contact Us
  • Job Board
  • Events/Workshops
    • Spokes Board Academy 2023
    • Spokes Nonprofit Symposium 2023

Risk Assessment for Nonprofits

September 22, 2020 by Grace Nielsen

Last week, we covered the types of insurance your nonprofit should consider. But how exactly do you choose what types of policies you will need for your organization? Doing a careful risk assessment is a good starting place.

What is a risk assessment? Ready.gov provides a simple definition: “A risk assessment is a process to identify potential hazards and analyze what could happen if a hazard occurs.”

A risk assessment contains multiple stages of identifying and prioritizing risk. Nonprofit leaders are responsible for recognizing vulnerabilities and monitoring any risk that could affect their organization.

There are many ways to accomplish a risk assessment based on the size of your organization. For smaller nonprofits, the best way to save money is for internal leadership teams—such as volunteers, boards, or staff—to conduct the assessment. Larger organizations might hire a risk professional or even employ one in-house.

BoardEffect provides a simple risk assessment template that any small nonprofit could use as a practical guide. Essential steps include:

  • Identify risks in categories such as governance, external, financial, or operational.
  • Analyze risks and score each for likelihood and impact.
  • Prioritize and determine how much risk your organization is willing to accept.
  • Determine which risks are acceptable and decide what you will need to take action on.
  • Ensure that risk controls are in place.
  • Monitor and review identified risks and update controls as needed.

Once your organization has recognized and prioritized risks you’ll have a much simpler experience selecting the types and amounts of insurance appropriate for your organization.

Additional resources:

  • Nonprofit Risk Management Center
  • Stanford Law School Risk Assessment Tool
  • 7 Critical Risks Facing Nonprofit Organizations

Article Categories

  • Financial and Legal
  • Fundraising
  • Governance
    • Board Development
  • Human Resources
  • Marketing & Communication
  • For Board Members
  • For Executive Directors
  • For Staff and Volunteers

DISCLAIMER: Spokes offers informed advice and recommendations, not professional counsel. Blog content is current as of the date shown. Individual posts are not necessarily updated, so please confirm the accuracy of the information, especially of older posts.

Popular Topics

board Board governance board of directors California nonprofits charity communication consulting donations donors employees events financial fundraising insurance leadership management marketing nonprofit nonprofit governance nonprofit management nonprofits nonprofit symposium philanthropy policy productivity Professional Development retirement spokes taxes volunteers

Member Testimonial

“There are currently more than 100 organizations that are members of the Veterans Collaborative, all with their own agendas and varying needs for support. Spokes is helping us to organize and meet all their diverse needs.”

Paul Worsham
SLO Veterans Service Collaborative
San Luis Obispo

What Else Are Members Saying?

Learn about Spokes membership

Guiding nonprofits to achieve their goals through support and expert resources.

How Can We Make A Difference Together?

Spokes welcomes local professionals who would like to share their expertise in support of the nonprofit sector.

Get Started Contributing

Recent Articles

  • Why Your Nonprofit Needs a Funding Strategy…
  • Can you fire a volunteer?
  • Before you convene…

Sign up for Spokes — Resources for Nonprofits

* = required field

Copyright © 2023 Spokes | Resources for Nonprofits. All Rights Reserved.
PO Box 5122, San Luis Obispo, CA 93403
Hosting by NDIC.
Photography by Nicole Boughton.