Risk Management in NGO

In profit making organizations, risk is the probability that an actual return on an investment will be lower than the expected return. On the other hand, in nonprofit organizations (NGO), risk is the events arising out of uncertainty that may have a significant impact on the objectives of the organization. Fraud and corruption is the risk every NGO wants to bring down to zero level.
A risk can have consequences beyond failure to deliver on results. Moreover, it may negatively impact on reputation, integrity, credibility and trust from donors and stakeholders. Nonprofit organizations should take all these possible impacts seriously as its viability depends upon donor’s trust. Therefore, management of risks is important for the sustainability of NGO.