1
00:00:04,900 --> 00:00:07,900
You've just had an opportunity to consider 
possible income streams.

2
00:00:08,000 --> 00:00:13,100
The next step is to consider how we assess 
what to go for, why and how.

3
00:00:13,200 --> 00:00:19,000
To do this we consider the idea of risk. 
It is important to look at this in two ways.

4
00:00:19,100 --> 00:00:23,900
Firstly, we consider what is the probability 
of success with this funding idea?

5
00:00:24,000 --> 00:00:28,800
I.e. what is the risk to our organisation 
in pursuing this funding stream?

6
00:00:28,900 --> 00:00:33,700
We consider this in terms of high, medium, 
and low probability of success

7
00:00:33,800 --> 00:00:35,900
So for example

8
00:00:36,000 --> 00:00:38,100
High probability, perhaps 80% chance of success

9
00:00:38,200 --> 00:00:43,000
Could be where there is an existing relationship 
with the funder.

10
00:00:43,100 --> 00:00:46,300
Where the funder has expressed a desire to 
support the organisation.

11
00:00:46,400 --> 00:00:48,200
Or it could be a long-term supporter.

12
00:00:48,300 --> 00:00:54,700
Medium probability, a 50% chance of success. 
Could mean you've had some success in the 
past

13
00:00:54,800 --> 00:00:57,900
Positive discussions have happened with the 
funder

14
00:00:58,000 --> 00:01:01,800
Or the competition could be limited and you 
are in a strong position

15
00:01:01,900 --> 00:01:04,800
Low probability, perhaps 20%

16
00:01:04,900 --> 00:01:10,000
Is where you may have had no previous relationship 
or it's a long time since the last donation.

17
00:01:10,100 --> 00:01:14,400
Or the landscape could be very competitive.

18
00:01:14,500 --> 00:01:19,900
Once you've decided on which pathways you're 
going to follow, you then apply the second 
assessment of risk.

19
00:01:20,000 --> 00:01:27,800
This is where you delve deeper into the concept 
of risk and think about viability, probability, 
concerns, and impact

20
00:01:27,900 --> 00:01:30,300
and assess your idea against each of these 
criteria

21
00:01:30,400 --> 00:01:36,900
This assessment outlines the risk involved 
in pursuing each element of your fundraising 
strategy

22
00:01:37,000 --> 00:01:39,100
In understanding the risk you can:

23
00:01:39,200 --> 00:01:46,000
Take action to prevent risk, take action 
to avoid risk as it arises

24
00:01:46,100 --> 00:01:52,200
Take action to overcome risks that are unavoidable, 
and review the project and procedures

25
00:01:52,300 --> 00:01:57,100
and if necessary recognise when the risk 
is too great to overcome.

26
00:01:58,200 --> 00:02:05,400
This table is a useful tool to start thinking 
about what risks could be, and what you need 
to do when you have identified them

27
00:02:05,500 --> 00:02:06,800
So for example:

28
00:02:06,900 --> 00:02:12,200
A grant giver for a project you wish to pursue 
will only accept partnership applications.

29
00:02:12,300 --> 00:02:20,500
This could be high impact, but low likelihood, 
if you're working with a trusted partner 
with a shared level of responsibility and 
commitment to the project.

30
00:02:20,600 --> 00:02:25,400
So you would need to just plan for the possibilities 
or for the impact of your application.

31
00:02:25,500 --> 00:02:31,900
For example, by outlining the responsbilities 
of both organisations and having regular 
catch ups.

32
00:02:32,000 --> 00:02:35,400
But it is very unlikely that you would need 
to take this any further.

33
00:02:35,500 --> 00:02:39,400
In your second year on the project, you secure 
backing from a major donor.

34
00:02:39,500 --> 00:02:46,800
And so the impact on your partnership for 
the grant application falling through moves 
to medium impact and remains at low likelihood

35
00:02:46,900 --> 00:02:54,200
Because you have already got an alternative 
funding option in place to support any loss 
of income from an unfeasible bid.

36
00:02:54,300 --> 00:03:00,500
So you only need to be aware of the risk, 
that it exists but little preparation needs 
to be undertaken.

37
00:03:00,600 --> 00:03:06,700
In the third year of your project, however, 
your partner for the grant application undergoes 
internal re-organisation

38
00:03:06,800 --> 00:03:13,900
And so you lose your contacts. It now looks 
unlikely that the organisation will want 
to go through with the partnership application

39
00:03:14,000 --> 00:03:21,300
As their focus has changed. This moves the 
risk to high likelihood and medium impact, 
so it's time to take action.

40
00:03:21,400 --> 00:03:30,400
This also outlines what is of key importance 
and that this should be a working document 
that is reviewed, and scheduled to be reviewed 
on a regular basis.

41
00:03:30,500 --> 00:03:37,900
Situations change and it doesn't always take 
much for something to move from low to high 
likelihood.

42
00:03:38,000 --> 00:03:43,500
Perhaps, you could print out this table and 
put it somewhere visible, to remind you to 
review and update your risk register.