5.2.2 Risk Management

Catalpa do not have a standard approach to risk management at project-level because we try to respond to the requirements of each project and donor rather than using one template / set way of doing things. However if the donor has no template for us to use, we can use this template for Risk Assessment which is based on DFAT's categories.

What is Risk Management

Risk management is when we are trying to respond if a risk does become reality

• Risk mitigation is when we are trying to prevent a risk from happening or lessen its impact

• Risk: A chance that something (negative) might happen - a chance that might happen that will have a negative impact

Benefits of Risk Management:

• Protects Catalpa as an organisation, staff, stakeholders / beneficiaries and assets and improves safety

• Minimises negative outcomes and identifies opportunities ​

• Improves service delivery, efficiency and effectiveness​

• Allows us to make better informed decisions​

• Supports better resource allocation and management

• Encourages pro-active rather than reactive management​

• Assists in mitigating risks before they occur​

• Helps protect us legally, financially and identifies any compliance gaps

When to undertake risk assessment

• Best for the team to do a risk assessment at the design / proposal writing stage, update when the contract is received or during inception

  • Brainstorm with everyone involved - Share the risk management matrix

  • Make sure we consider the budgetary implications of risk management in the project design / proposal

• During implementation, Team Leader and/or Program Manager to review at least every quarter or more frequently if anything changes (operational environment, staffing etc.)

Risk assessment is a living document - keep it updated to be most effective and ensure it is contributed to by everyone on the team

See group training on risk and also template risk management assessment matrix here