I’ve taken forever to write this blog because I didn’t know what to say. Risk is so boring! Why did I choose this topic as the focus for the month! Probably because it is such an important aspect of the sustainability of an organization.

We unconsciously deal with risk every day, it is factored into all our decisions but we seldom stop and consciously take account of the risks facing us and what we plan to do about them. We are so busy crisis managing and dealing with the situation when a risk becomes a reality… that we never stop and think about what could go wrong and what we can do about it. And if we do it’s purely a compliance task because a donor has asked for your risk register.

I think the problem with risk is that a) we don’t like thinking about the possibility of bad things happening and b) we’re preparing for things that, if we do our job properly, will never happen. If you’re an optimistic, go-getting type of person, nothing about considering risk is FUN!

But the only way to get out of constant crisis mode is to identify the risks and put things in place to prevent them. Every crisis is a risk that becomes a reality. The goal is to see the potential risks in advance and do something to reduce them so that you don’t end up with a crisis. Or at the very least, for every crisis make sure steps are actioned so it never happens again!

There are a couple of ways to think about risks: INTERNAL risks are based on our choices – inherent in every decision we make is the risk of consequences to that decision, and EXTERNAL risks, are based on the choices of others, and how we respond to them. We can also think about risks in terms of the possibility of bad happening because of a decision and the possibility of missing something good (an opportunity).

It is helpful to categorise risks by the likelihood of it happening and the impact if it does. We are surrounded by risks all the time but most of them are so unlikely and have little impact if they do occur that it’s not even worth worrying about. When I chose to read my book instead of going to the store, I might run out of food. The likelihood is low but the impact may be severe! However, I’ll just go to the store before that happens and then I’ve mitigated the risk and choosing to read my book has no negative consequences.

Identifying the risks facing us is only the first step, and really doesn’t add much value unless you also decide and implement actions that reduce either the likelihood or the impact of the risk. The goal is always to prevent the risk from becoming a reality and dealing with another crisis. So, take a moment regularly to step out of the hamster wheel and look ahead to see what needs to be done to ensure nothing jeopardises the sustainability of your organization.