Childrens Charity- Risk Register for the Project - Example

Children’s Charity Name: Course: Tutor: Date: Children’s Charity There are major risks that will affect the charity if it continues with the project. Insufficient funds are a major risk will lead to a collapse of the child’s charity. Finances determine the success or failure of such charity organizations. The charity cannot meet the costs of renting the space; hence, the charity cannot sustain itself. The children are at risk because their future is not assured if the charity fails to generate sufficient funds to cater for their needs (Bruce 2009, p. 230). The restrictions associated with the transfer of items is a risk because it is obvious that some items cannot be sold; hence, becoming scrap. The scrap items will not be sold, which will lead to loss or lack of revenue to sustain the charity. The high valued items sold at a throw away price may not assist the charity at long last because the revenue will be reduced. The fact the charity only depends on old age pensioners and average wage earning families may not get a lot of revenue because these people spend only less money due to their meager earnings. This is because of the insufficient earnings or income that will be used to satisfy other basic needs such as food, shelter, clothing, health care, and education. These people are not consistent or regular customers because of their tight budget, which may lead to fluctuating income to the charity (Bruce 2009, p. 231). Budgeting for the revenue from this charity is difficult due to lack of consistent income flow. The charity is at risk of not meeting its objectives and goals if the old age pensioners and average wage earning families are not willing to purchase the products of the charity (Wolf, 1999, p. 231). This means that, the charity will not be having other means of getting revenue because it depends on the sales of the items such as household goods, toys, ornaments, and books. The charity is at risk of closing business because these items are not always bought but on specific occasions. The books can be bought only when the schools opens and the toys and ornaments are purchased only on special occasions such as Christmas, which are ones in a while. This might be difficult for the charity to pay for the space during some months of the year; therefore, the owner of the premises may decide not to provide the space any more (Steven, 2001, p. 54). The people selling or the volunteers may feel demotivated because of lack of pay. Motivation theories explain that, employees are inspired and motivated to work if they are paid well. The volunteers too need to provide for their families and it is not unrealistic for them to sell the whole year without being paid. In future, the charity may not get volunteers because most people nowadays cannot work without being paid. Most charity organizations employ their staff and pay them for the services rendered and to improve on effectiveness and efficiency (Bruce 2009, p. 235). The new project that the company considers investing on it may not be fruitful and the charity is at risk of ending their operations due to the costs associated with it. The charity has no sufficient funds to invest in electronic stock control system. The website may not work because the people buying the products are the low-income earners who may not get access to the website and have no knowledge of the website. It will be costly to the charity to upgrade the system and it may not be completed because the charity has no reliable source of funds to finance the project (Hummel, et. al, p 67). There are no experts willing to offer free services because such services are expensive and needs some one who is motivated by being paid well. Installation of cameras in all premises and making the whole process online may not become effective; hence, the charity goals and objectives will not be achieved in the long run. This therefore is very risk to the charity organization because it will not succeed. The new technology is expensive and the charity is at risk of collapsing due to lack of funds to complete the project (Holland Ritvo, 2008. Pp. 41). How the risks can be avoided or the potential consequences reduced The risks facing the charity can be reduced or avoided if only they are planned for, in advance. For the charity to avoid the risk of collapsing due to insufficient funds, it should engage reliable donors who fund such charity organizations, which assist the children from poor family background. This will ensure children being assisted gets the services they are suppose to at all time (Bruce 2009, p. 239). The charity organization should write proposal institutions such as banks and wealthy individuals to fund the charity instead of depending on selling items that may not sustain the charity due to its unreliability. The donors will fund all the activities of the charity and employees paid for them to be motivated and effective in service delivery. Funds determine the success or failure of such charity organizations. The items to be sold should be increased and not target only the low income earners and pensioners but consider the wealthy in the society who can buy regularly and in large quantities (Bruce 2009, p. 240). With the donors, the charity organization can introduce the new system of selling the goods or items online because of the availability of funds. This will avoid the charity from failing to complete the project and the possible collapse. The donors are able to ensure the charity get regular source of funds if it invests in the new technology system that will increase the charity sales; hence, revenue (Wolf, 1999, p. 231). The market will be expanded because many people can access the website all over the world to buy the items of the charity. Though the technology is expensive, the charity will continue serving the children because the income will be reliable and it can be budgeted to serve the intended purpose. The charity organization assisting the children will benefit if well established structures on how to sell and manage the financial resources from the donors and sales. Proper planning will save the charity from collapsing which could have rendered many children hopeless with no future (Holland Ritvo, 2008. Pp. 42). Risk Register for project Risk Risk Name Risk Number Probability (1-3) Risk Score Mitigation Lack of funds Finance risk 1 3 4 Looking for donors Restrictions Transfer risk 2 2 3 Allowing transfer of items. New technology Technological risk 3 2 2 Investing in new technology workers Volunteers risk 4 2 2 Paying workers Reference: Bruce, R. H. 2009. Starting and Managing a Nonprofit Organization: A Legal Guide. New York: Wiley and Sons. Pp. 230-245. Holland, T. and Ritvo, R. A. 2008. Nonprofit organizations: principles and practices: Foundations of social work knowledge. Columbia University Press. Pp. 32-42 Hummel, J. M. and University of St. Thomas, Center for Nonprofit Management, 1999. Starting and running a nonprofit organization. U of Minnesota Press. Pp 74-83 Steven, J. O. 2001. Understanding nonprofit organizations: governance, leadership, and management. Westview Press. Pp. 45-64 Wolf, T. 1999. Managing a nonprofit organization in the twenty-first century. New York: Simon and Schuster. Pp. 230-243 Read More