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Risk Identification and Assessment

General Risk Assessment Procedures

Methodologies for Risk Identification

At Generocity Church, our commitment to create discipleship communities across regional, rural and coastal Australia requires us to be both Spirit-led and practically wise in how we identify risks. Living out our value of "Humble Growth" and being "connected and accountable," we employ various methodologies to identify risks across all areas of our operations:

  1. Brainstorming Sessions: Regular meetings with staff, volunteers, and leadership to discuss potential risks.

  2. Checklists: Use of standardised checklists tailored to different church activities and areas.

  3. Historical Data Analysis: Review of past incidents, near-misses, and claims to identify recurring issues.

  4. External Consultation: Engaging with experts, including our insurance providers and legal advisors, to identify potential risks.

  5. SWOT Analysis: Regularly assessing our Strengths, Weaknesses, Opportunities, and Threats to identify risks.

  6. Process Mapping: Analysing our operational processes to identify potential points of failure or vulnerability.

  7. Scenario Planning: Considering various "what-if" scenarios to anticipate potential risks.

Use of Risk Assessment Guidelines

Reflecting our Leadership Cultural Imperative to "lead with authenticity, integrity and humility," we use a structured approach to assess identified risks. This approach demonstrates how "structure serves what the Spirit is doing" while ensuring comprehensive care for our community:

  1. Likelihood Assessment: Evaluate the probability of the risk occurring using a scale from 1 (Rare) to 5 (Almost Certain).

  2. Impact Assessment: Determine the potential consequences if the risk were to occur, using a scale with labels as follows: 1 = Slight, 2 = Minor, 3 = Moderate, 4 = Major, 5 = Severe.

  3. Risk Rating: Combine the likelihood and impact scores to determine the overall risk rating (Low, Medium, High, or Very High). Very High risks must not proceed until they are reduced, High risks require approval and a zz Detailed Action Plan for High Risks form completed, Medium risks need a zz Focused Risk Management Plan completed, and Low risks generally require no further action.

  4. Risk Prioritisation: Based on the risk rating, prioritise risks for treatment and allocation of resources.

  5. Control Effectiveness: Assess the effectiveness of existing controls for each identified risk.

  6. Risk Treatment: Develop and implement strategies to address prioritised risks, following the hierarchy of controls (Elimination, Substitution, Engineering Controls, Administrative Controls, Personal Protective Equipment). For more information, refer to the zz Hierarchy of Controls

 

Specific Risk Areas

As we pursue our mission to create discipleship communities where everyday people live in a restorative and transformative relationship with Jesus, we must carefully consider various types of risks that could impact our ministry:

Strategic Risks

Living out our commitment to be "locationally motivated, centrally supported," we assess:

  1. Our Plans (long-term planning, vision alignment)

    1. Risk of misalignment between church activities and our long-term vision

    2. Potential for ineffective resource allocation due to poor strategic planning

    3. Risk of failing to adapt to changing community needs or demographics

  2. Our Objectives (mission fulfilment, goal setting)

    1. Risk of mission drift or loss of focus on core objectives

    2. Potential for setting unrealistic or unmeasurable goals

    3. Risk of failing to meet key performance indicators or ministry targets

Financial Risks

Demonstrating our value of "Personal Impact" through faithful stewardship of resources:

  1. Credit Risks

    • Risk of default on loans or financial commitments

    • Potential for non-payment of pledges or donations

  2. Market-related Risks

    • Risk of fluctuations in investment values

    • Potential impact of economic downturns on giving patterns

  3. Liquidity

    • Risk of insufficient cash flow to meet operational needs

    • Potential for over-reliance on specific funding sources

Operational Risks

Reflecting our value that "People Matter" and our commitment to "move beyond our comfort to care as Jesus cares," we assess:

  1. Commercial Risks

    • Supply chain disruptions affecting church operations or events

    • Vendor management issues, including potential for fraud or non-performance

  2. Professional Risks

    • Staff and volunteer management challenges, including recruitment and retention

    • Risk of professional misconduct or breach of duty of care

  3. Property Risks

    • Equipment failure or malfunction during church activities

    • Facility management issues, including maintenance and security concerns

  4. Risks to People

    • Health and safety risks for staff, volunteers, and congregation members

    • Potential for accidents or injuries during church activities or on church property

  5. Governance and Compliance Risks

    • Risk of non-compliance with relevant laws and regulations

    • Potential for governance failures or conflicts of interest within church leadership

Summary

By systematically identifying and assessing these risks, Generocity Church can develop targeted strategies to mitigate potential negative impacts and ensure the continued fulfilment of our mission and objectives. This approach reflects both our commitment to "Humble Growth" and our understanding that effective risk management supports our calling to be people of courageous influence in God's Kingdom. Regular review and updating of this risk assessment process is crucial to maintaining an effective risk management framework.



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