AMAKA Tip #12: Risk Prevention & Management Compliance & QA


How do you give risk a boot?

It is easy. Well, that is if you know the kinds of risks that are specific to your entity. The hardest part is knowing and recognizing your risks. Next, muster the courage and consensus to decide that you (1) want to give those risks a boot, and (2) demonstrate that you're ready to stick to a plan. If you think all that are really easy then congratulations because it would seem that you have the environment that makes institutionalizing risk prevention and management possible. Let's begin.




First, what you want to do is to develop and adopt a comprehensive, systematic, and effective risk prevention and management practice with the goal of reducing your risk, loss, and liability exposure.


In case you are one of those experienced people who knows and are comfortable with all the risk of your organization, and you are wondering why develop a system when you already know what your risks are, I say to you that its time to rethink your position on risk prevention and management.


Why develop a Risk Prevention & Management System?


All nonprofit organizations have potential risks that include property, income/funding, liability, human resources, reputation, mission, governance, fiduciary, technology, vulnerable populations, and risk associated with inter-agency collaboration.


Every nonprofit organizations wants to first eliminate all foreseeable risks associated with these potential risks to their operations and governance processes, and if an organization cannot eliminate all the potential risks, which is highly possible in today's fluid operations environment, they make every effort to reduce their risk exposure to the risk including loss, and liability.



Specifically, a Risk Prevention & Management System will:

  1. Establish a consensus on how to prevent, detect, manage, and reduce risk

  2. Safeguard the organization's human, physical, reputation, and financial assets



COMPONENTS OF AN EFFECTIVE RISK PREVENTION & MANAGEMENT SYSTEM

 


Component #1: Compliance (Corporate, Legal, and Regulatory Framework):


Obtain and comply with all required documentation and licenses; develop an internal corporate compliance system, and adhere to all applicable national, local, and funding oversight regulations.

 


Tips to achieve & prove implementation of Component #1

Be familiar with all regulatory requirements applicable to program and program activities.
Consult a legal counsel or a certified compliance professional, such as AMAKA, to provide qualified information including interpretation regarding codes, regulations, requirements, laws, and general guidance involving co