Risk Categories and Risk Management Processes in Nonprofit Organizations

Open access

Abstract

The article addresses risk management in nonprofit organizations. This topical issue appears not to have been adequately studied by researchers to date. There are several questions the author of this paper attempts to answer: What are the risk categories faced by nonprofit organizations in their daily operations? Do Polish nonprofit organizations take any measures in the area of strategic risk management? A contribution is made to the theory of management of nonprofit organizations by making an overview of existing literature on the subject, identifying a research gap, proposing concepts that attempt to fill the gap, and recommending areas for future study. A comprehensive list of risks faced by nonprofit organizations in their daily operations has been developed and validated for further application. The empirical material comes from a study based on a national random sample of 235 nonprofit organizations.

[1] Bowman, W., Keating, E., Hager, M.A., 2007. Investment Income. In: Financing nonprofits, putting theory into practice, edited by D. R. Young. Lanham: National Center on Nonprofit Enterprise and Rowman and Littlefield Publishers, INC.

[2] Bryson, J.M., 1988. A strategic planning process for public and non - profit organizations. Long Range Planning, 21 (1), pp.73-81.

[3] Chandler, A.D., 1962. Strategy and structure: Chapters in the history of the American industrial enterprise. Cambridge: MASS, MIT Press.

[4] Christensen, R.K., Clerkin, R.M., Nesbit, R., Paarlberg, L.E., 2009. Light and dark sides of nonprofit activities and the rules to manage them: The case of charitable bingo. Administration & Society, 41 (2), pp.213 - 234.

[5] Clary, D.H., 1997. Six steps to good-reputation insurance. Nonprofit World, 15 (1), pp.45-47.

[6] Domański, J., 2012. Competitiveness of nongovernmental organizations in developing countries: Evidence from Poland. Nonprofit and Voluntary Sector Quarterly, 41 (1), pp.100-119.

[7] Domański, J., 2014. Zarządzanie ryzykiem w organizacjach non profit (Risk Management in Nonprofit Organizations). Warszawa: Wolters Kluwer.

[8] Dorminey J., Mohn R., 2007. A model for not-for-profit enterprise risk management: ERM at the federal reserve bank of Richmond. Journal of Government Financial Management, 56 (1), pp.50-57.

[9] Duncan, N.K., 2008. Risk management: How to protect your assets? Nonprofit World, 26 (1), pp.25-28.

[10] Fast, L., 2007. Characteristics, context and risk: NGO insecurity in conflict zones. Disasters, 31 (2), pp.130-154.

[11] Greenlee, J.S., Tuckman, H., 2007. Financial health. In: Financing nonprofits, putting theory into practice, edited by D.R. Young. Lanham: National Center on Nonprofit Enterprise and Rowman and Littlefield Publishers, INC.

[12] Gumkowska, M., Herbst, J., 2008. Najważniejsze pytania - podstawowe fakty. Polski sektor pozarządowy 2008 (Key Questions – Basic Facts. Polish Nongovernmental Sector in 2008). Warszawa: Stowarzyszenie Klon/Jawor.

[13] Head, G.L., Herman, M.L., 2002. Enlightened risk taking, A guide to strategic risk management for nonprofit. Washington: Nonprofit Risk Management Center.

[14] Iwankiewicz-Rak, B., 2006. Siła wizerunku organizacji pozarządowej (The Power of the Nongovernmental Organization’s Image). Trzeci Sektor, 5, pp.30-36.

[15] Jackson, R.A., 2008. Reputations at RISK. Internal Auditor, 65 (3), pp.64-70.

[16] Kearns, K., 2007. Income portfolios. In: Financing nonprofits, putting theory into practice, edited by D. R. Young. Lanham: National Center on Nonprofit Enterprise and Rowman and Littlefield Publishers, INC.

[17] Krzelowska, M.I., 2008. Sukces organizacji pożytku publicznego w świetle badań. (The Success of Public Benefit Organizations in Light of Research). Trzeci Sektor, 13, pp.68-75.

[18] Lehn, M.B., 2008. Bearing more risk for results: Performance accountability and nonprofit relational work. Administration & Society, 39 (8), pp.959-983.

[19] Mallin, M.L., Finkle, T.A., 2007. Social entrepreneurship and direct marketing. Direct Marketing: An International Journal, 1 (2), pp.68-77.

[20] Martínez, C.V., 2003. Social alliances for fundraising: How Spanish nonprofits are hedging the risks. Journal of Business Ethics, 47 (3), pp.209-222.

[21] Mitchell, V., 1995. Assessing the perceived risks associated with appointing planning consultants. Journal of Marketing Management, 11 (1-3), pp.165-186.

[22] Mu-Sheng Chang., 2008. Alternative risk transfer: Evidence of self-insurance among hospitals in Pennsylvania for workers’ compensation liability. Journal of Insurance Regulation, 27 (2), pp.59-94.

[23] Pike, S., Roos, G., Marr, B., 2005. Strategic management of intangible assets and value drivers in R&D organizations. R&D Management, 35 (2), pp.111-124.

[24] Sharp, Z., Brock, D.M., 2012. Implementation through risk mitigation: Strategic processes in the nonprofit organization. Administration & Society, 44 (5), pp.571-594.

[25] Sollis, P., 1995. Partners in development? The state, nongovernmental organizations and the UN in Central America. Third World Quarterly, 16 (3), pp.525-542.

[26] Stewart, L.J., Owhoso, V., 2004. Derivative financial instruments and nonprofit health care providers. Journal of Health Care Finance, 31 (2), pp.38-52.

[27] Stewart, L.J., Trussel, J., 2006. The use of interest rate swaps by nonprofit organizations: Evidence from nonprofit health care providers. Journal of Health Care Finance, 33 (2), pp.6-22.

[28] Trussel, J.M., Patrick, P.A., 2009. An empirical analysis of financial distress in Pennsylvania hospitals. Journal of Health Care Finance, 36 (1), pp.31-60.

[29] Tyminshi, R., 1998. Reducing funding risk and implementing a fundraising plan: A case study. Nonprofit Management & Leadership, 8 (3), pp.275-287.

[30] Tyrakowski, M., 2007. Rola organizacji pozarządowych w rozwiązywaniu problemów społecznych (The Role of Non-Governmental Organizations in Solving Social Problems). Znacznie – ZNZE WSIiZ, 2 (4), pp.124-151.

[31] Waśkowski, Z., 2008. Uwarunkowania i formy współpracy między organizacjami non profit a podmiotami komercyjnymi na rynku kultury (Terms and Conditions of Partnerships Between Nonprofit and Commercial Organizations in the Culture Market). Świat Marketingu.

[32] West, D.C., Sargeant, A., 2004. Taking risks with advertising: The case of the not-for-profit sector. Journal of Marketing Management, 20 (9), pp.1027-1045.

[33] Wymer Jr., W.W., Samu, S., 2003. Dimensions of business and nonprofit collaborative relationships. Journal of Nonprofit & Public Sector Marketing, 11 (1), pp.3-22.

[34] Yan, W., Denison, D.V., Butler, J., 2009. Revenue structure and nonprofit borrowing. Public Finance Review, 37 (1), pp.47-67.

[35] Yetman, R.J., 2007. Borrowing and dept. In: Financing nonprofits, putting theory into practice, edited by D. R. Young. Lanham: National Center on Nonprofit Enterprise and Rowman and Littlefield Publishers, INC.

[36] Young, D.R., 2007. Toward a normative theory of nonprofit finance. In: Financing nonprofits, putting theory into practice, edited by D. R. Young. Lanham: National Center on Nonprofit Enterprise and Rowman and Littlefield Publishers, INC.

[37] Young, D.R., 2009. How nonprofit organizations manage risk? In: Paid and unpaid labour in the social economy. edited by S. Destefanis, & M. Musella. AIEL Series in Labour Economics, Physica-Verlag Heidelberg.

[38] Zapadka, P., 2007. Ryzyko prawne w działalności banków komercyjnych – wybrane zagadnienia (Legal risk in commercial banks - selected issues). Prawo Bankowe, 3 (115), p.30.

Foundations of Management

The Journal of Warsaw University of Technology

Journal Information


CiteScore 2017: 0.28

SCImago Journal Rank (SJR) 2017: 0.198
Source Normalized Impact per Paper (SNIP) 2017: 0.159

Metrics

All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 410 410 86
PDF Downloads 240 240 59