Funders are often described—and describe themselves—as being able to take risks that neither the private sector nor the government can or will take. However, no industry standard currently exists for defining, assessing, and managing risk in philanthropy. Few grantmakers assess risk during the application process and even fewer have processes in place to manage risks to impact after a grant is made. Without being aware of the parameters of risk, one can’t adequately plan or manage risk—let alone take risk. This gap materially contributes to sub-optimal planning, implementation, and transparent and/or trusting interactions between funders and grantees. While managing risk is a shared responsibility, funders are in a unique position to foster an environment that allows nonprofits to be more transparent about possible risks to impact and more trusting of funders as partners for impact. In this webinar, Open Road Alliance will introduce the topic of risk management in philanthropy as well as a toolkit it helped produce in 2016 that can be adopted or adapted for considering risk practices more fully in grantmaking work.
Open Roads Alliance