Example - A Grant - Introduction
This example demonstrates how the four steps in preparing a risk assessment are applied to a state grant program. The four steps in preparing a risk assessment are:
The following key points should be borne in mind:
- Determining what needs to be done (Objectives/Goals),
- Identifying what can go wrong (Risks),
- Prioritizing what can go wrong (Risk Ranking), and
- Formulating actions that will reduce the chance of things going wrong (Control Activities).
- This example is fictional and is meant for educational purposes only. It may contain more or less information than is suitable for preparing a complete risk assessment.
- This example risk assessment has been prepared for one grant program. In general, it is rarely cost effective to prepare a risk assessment for a single grant program because the program likely shares many administrative processes with other programs. As part of the planning for the risk assessment, senior management should determine the most effective organizational level at which to document the risk assessment.
- Although both a process narrative and a flow chart are presented as example documents below, agencies have discretion in deciding whether to document the process with a process narrative or a flow chart, or both. Whichever the documentation method selected, there should be enough detail to make control point identification possible, but not so much detail as to overwhelm a reader.
Example Grant Documents (see left navigation panel)
- To-do list and process narrative
- Risk grid