Towards a Better World

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handling risk and relationships Board and
Management Perspectives Nick Chipman
PricewaterhouseCoopers
Second Summit on Non Profit Leadership
Towards a Better World
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Headline Messages

• Defining risk
• Risk profile
• Risk management frameworks

Second Summit on Non Profit Leadership
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Defining Risk

• Risk
• The potential for loss
• The potential for lost opportunity
• Uncertainty around an expected outcome /
  volatility

Second Summit on Non Profit Leadership
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Risk Profile StrategicallyWhere are we (NFP)
exposed?

• Industry Structure
• Competition
• Growth and Options
• Focus on core / diversity / strategic alliances /
  merge
• Investment Options
• Public Policy and Government funding
• Business Model

Second Summit on Non Profit Leadership
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Risk Profile - Commercially

• Customer Donor relationships
• Supplier dependency
• Costs / demands of compliance
• Contracts and risk allocation
• Fundraising options / disciplines
• Stakeholder management
• Brand and Reputation
• Transparency

Second Summit on Non Profit Leadership
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Risk Profile - Technically

• Key physical Assets and Equipment
• Critical Infrastructure
• Capex
• Asset portfolio management
• Maintenance
• Security
• Reliability

Second Summit on Non Profit Leadership
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Risk Profile - Operationally

• Right / best people
• Safety and health
• Employment practices
• Performance systems
• Process / techniques
• Culture and behaviour
• Innovation and change integration

Second Summit on Non Profit Leadership
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Risk Profile - Financially

• Financial control and cash-flow
• Technology enablement
• Cost management
• Return on investment / key performance ratios and
  metrics
• Taxation and related liabilities
• Asset liability mix (business model)
• Systems integrity / leverage

Second Summit on Non Profit Leadership
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Risk Management Frameworks Key Attributes

• Strategy, Planning and Policy
• Structure and Function oversight, action and
  expertise
• Process and Technique
• Measures and Metrics
• Culture and Behaviour

build into the organisations business routines
Second Summit on Non Profit Leadership
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Nick Chipman PartnerHead of Financial
Organisational Risk Management
PricewaterhouseCoopers
Contact 03 8603 6215Mobile [phone]
836Email nick.chipman_at_au.pwc.com
Second Summit on Non Profit Leadership
Towards a Better World