The following benefits were identified by organisations in our research, and from the literature.
Improving management overall
Risk management is an integral part of good organisational management. In a 2005 survey of UK charities by research consultancy PKF, 93% identified benefits in planning, decision-making, avoiding and responding to problems.
Improving volunteer management
Many organisations in our research take the view that risk awareness is simply one aspect of good volunteer management and often helps to stimulate better practices and systems in relation to volunteers.
Protecting an organisation’s assets and sustainability
Risk management protects and strengthens organisations’ assets (people, property and finances) and contributes to sustainability. It helps ensure the quality of services and activities, and the viability of the organisation.
Maintaining accountability and reputation
Risk management helps maintain an organisation’s good reputation and aids accountability to clients, users and members, paid and unpaid staff, donors, sponsors and supporters, and the general public.
Maintaining funding
Organisations in our survey agreed that good risk management practice is often necessary in the current funding market. Funding awards are frequently contingent on an organisation demonstrating effective risk management.
Staying true to the voluntary sector ethic
The practice of risk management helps uphold the ethos and mission of the sector. It ensures maximum benefit and minimum harm, and can increase opportunities for effective and innovative work.
Getting insurance
Managing risk effectively is an important factor in getting insurance. Having no or inadequate risk management is likely to damage an organisation’s insurance situation, increase policy costs or make cover unattainable.
Legal compliance
Risk management helps prevent breaches of law and regulation which could expose an organisation to accusations and legal action. Awareness of legal liability has arisen from a small number of claims in this country, set in the wider context of the ‘compensation culture’ which is perceived to have gripped America and gained a good foothold here. In fact, personal injury claims in this country have stayed more or less static in recent years and claims against volunteer-involving organisations are not common. But the prospect of being accused or sued is alarming, so a few cases have certainly made the sector aware of ‘worst case scenarios’.
