Scope risk

Scope risk eventuayes when the boundaries of your project are not clearly defined. The scope of your application is defined by your:

• Objectives 
• Goal
• Phases
• Tasks
• Resources
• Budget
• Schedule
• Limitations and parameters (e.g., you only provide counselling to men aged over 18 but workers start seeing anyone who presents at your clinic).

Defined deliverables or performance indicators, objectives, activities, consumers, geographic area, and hours of operation are clearly communicated to stakeholders, senior management and team members.

Objectives are tangible and reflect your organisational objectives.

Cost risk

The costs which you have provided in your budget may be affected by internal and external factors (e.g., increases in salaries; increases in utility/transport costs).

Make sure you clearly specify the resources and materials needed.

If the contract period is long, factor in increases for fluctuating costs.

When providing estimates for material expenses, use the upper estimates.

Include a contingency amount.

Prepare an exhaustive budget with line items for your proposal.

Establish good accounting procedures.

Schedule risk

Scheduling phases and activities enables:

• You to manage changes throughout the contract period
• Goal setting and the development of critical paths
• Clarity in reporting requirements.

Achieving timelines and agreed critical paths may be difficult if there is extensive reliance on external parties or materials.

To minimise schedule risks:

• Break down the flow of activities into small, clearly defined components
• Allocate relatively short timeframes for each component.

When formulating the critical path, ensure that holidays are built into the equation.

Wherever possible, include projected periods of high demand.

Performance risk arises when activities fail to produce anticipated results and/or there is a failure to complete an activity on time.

Make objectives tangible, feasible, and credible.

Construct a schedule to identify priority activities.

Identify potential red tape impediments (e.g., financial approvals) that may impact on the performance of your activities.

Governance and decision risk usually occur where an organisation's governance and decision-making structures are not clearly articulated or communicated to staff, funders, consumers and the community.

Develop a governance model for your proposal which describes the roles of team members and decision-making process.

Describe the ground rules for participation in the program and the processes for sharing information with the rest of the organisation.

Be specific about the commitment expected from Board members, external stakeholders, and team members.

Strategic risks may result from:

• Choosing a technology which does not work for outreach services
• Proposing activities that are inflexible and/or inaccessible to consumers
• Not being able to secure infrastructure support or cooperation from other parties to successfully execute your proposal.

Clearly state how the proposed services will be provided and highlight the beneficial outcomes for consumers. 

Conducting a community needs assessment and a review of the program/service you are implementing will help you to minimise any feasibility or design risks.

Legal risk: Alcohol and drug organisations may encounter many legal and regulatory obligations, as well as contract risks.

Your organisation's policies and procedures may need to be adapted to reduce legal risk.

Make sure these policies and procedures are continuously reviewed and implemented for all activities and program.

Environmental risks are risks associated with external hazards, including storms, floods; earthquakes; vandalism.

Organisations have little control over environmental risks.

Ensure your organisation has adequate insurance cover.

Resource risk

Resource issues such as staff turnover and inadequate access to education, training and professional development are common risks. There is always a risk that your key experts or senior staff will leave and that your team are inexperienced or need to acquire new skills.

In addition, you may need to invest in new materials, technology, or resources to replace outdated or unreliable equipment

Develop policies and procedures to manage organisational and staff changes.

Estimate costs accurately.

Do not place undue expectations on the capacity of the staff to undertake the proposed activities.

Ensure any contracted and/or collaborative work is clearly defined in contracts and memoranda of understanding.

Ensure sufficient funds have been requested for:

• Training and professional development
• New materials and technology required to conduct the proposed work.

Interpersonal conflict risk: Conflict management may arise with a number of internal and external stakeholders throughout the development of the funding application.

Develop conflict management strategies and train staff in conflict management techniques.