Identifying and managing potential risks that a community or charity group may face is a crucial part of effective governance. By managing risks effectively, committees and trustees can ensure that:

• Significant risks are identified, monitored, and acted upon in a timely manner to make informed decisions.
• Opportunities are maximized and developed with confidence that risks will be managed.
• Forward and strategic planning are improved.
• Goals are achieved successfully, demonstrating to stakeholders, beneficiaries, donors, and the public that risks are being managed.

The responsibility for managing and controlling a charity rests with the committee or trustees, making their involvement in the risk management process essential. In all but the smallest charities, trustees may delegate aspects of risk management to staff or professional advisers. However, trustees must remain involved enough to ensure good governance is practiced.

Why Should Your Club Care About Risk?

• Duty of care.
• Minimizing the risk of harm to your organization, members, and the community.
• Protecting the integrity and reputation of your organization.
• Possibly lowering insurance premiums.
• Maintaining the viability of your club.
• Risk avoidance strategies include communication, setting expectations, support systems, staff training, insurance, risk assessment, and contingency planning.