RISK MANAGEMENT
WHAT IS "RISK"?
NPHOENIX is subject to certain risk that affects our ability to operate, serve our members, participants, supporters, stakeholders, and remain Conscious Stewards of matter and assets. Risk is an event or cause leading to uncertainty in the outcome of NPHOENIX operations. Inherent risk exists for employees and volunteers, liabilities to stakeholders and property, so NPHOENIX intends to manage four broad categories of risk: strategic, financial, operational, and compliance, in addition to any other perceived risk.
1. Strategic Risk - associated with the operations of a particular industry, and arise in:
3. Operational Risk - associated with the operational and administrative procedures of a particular industry which are very common in today's environment.
4. Compliance Risk (Legal Risk) - associated with the need to comply with the rules and regulations of the government and regulators.
5. Other Risks - various risks like fraud, natural disaster (floods) and others depend upon the nature and scale of the industry.
WHY MANAGE RISK?
Daily we manage risk without necessarily describing it as “risk management”:
A formal risk management program is necessary to foster awareness of systematic risks to daily operations of a business, trust, or any creative hobby (and life in general!). During a complete risk assessment, we consider what might go wrong and implement appropriate mitigating control measures over occurrences that would be a detriment to the well-being of NPHOENIX and anyone participating in an organizational offering.
As a partner program of a qualified §501(c)(3) nonprofit educational charity, NPHOENIX needs also provide assurance to our regulators, auditors, and stakeholders that we adequately consider risk, and document the enterprise risk management process.
The jobs and services the organization provides, the safety of programs and events, and other benefits all depend to an extent on our ability to control risk to manageable levels.
NPHOENIX is subject to certain risk that affects our ability to operate, serve our members, participants, supporters, stakeholders, and remain Conscious Stewards of matter and assets. Risk is an event or cause leading to uncertainty in the outcome of NPHOENIX operations. Inherent risk exists for employees and volunteers, liabilities to stakeholders and property, so NPHOENIX intends to manage four broad categories of risk: strategic, financial, operational, and compliance, in addition to any other perceived risk.
1. Strategic Risk - associated with the operations of a particular industry, and arise in:
- Business Environment - Buyers and sellers interacting, changes in supply and demand, competitive structures and introduction of new technologies.
- Transaction - Assets relocation of mergers and acquisitions, spin-offs, alliances and joint ventures.
3. Operational Risk - associated with the operational and administrative procedures of a particular industry which are very common in today's environment.
4. Compliance Risk (Legal Risk) - associated with the need to comply with the rules and regulations of the government and regulators.
5. Other Risks - various risks like fraud, natural disaster (floods) and others depend upon the nature and scale of the industry.
WHY MANAGE RISK?
Daily we manage risk without necessarily describing it as “risk management”:
- Lock the door behind you on the way out of the house? That is risk management.
- Buckle your seatbelt? That is risk management.
- Balance your checkbook? That is risk management.
- Look both ways before crossing the street? That is risk management.
A formal risk management program is necessary to foster awareness of systematic risks to daily operations of a business, trust, or any creative hobby (and life in general!). During a complete risk assessment, we consider what might go wrong and implement appropriate mitigating control measures over occurrences that would be a detriment to the well-being of NPHOENIX and anyone participating in an organizational offering.
As a partner program of a qualified §501(c)(3) nonprofit educational charity, NPHOENIX needs also provide assurance to our regulators, auditors, and stakeholders that we adequately consider risk, and document the enterprise risk management process.
The jobs and services the organization provides, the safety of programs and events, and other benefits all depend to an extent on our ability to control risk to manageable levels.
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