Managing Risk to Maximize Impact in Grantmaking
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 the risk.