Risk Management
TNI regularly assesses legal; security; financial; reputational; and operational risks. Overall risks are assessed annually – in terms of probability and severity of impact and improved mitigation measures put in place, where necessary.
Below the key high probability, high impact risks addressed in 2023, and identified for 2024 are discussed.
1. Financial Sustainability
As a non-profit organization, TNI is primarily dependent on grant income, which is a perennial and priority risk the Institute must manage.
In 2023, TNI’s total income increased by 33%. Of this increase, half is due to income received from foundations on behalf of fiscally sponsored projects.
Our goal for 2023 had been to continue to diversify our funding base, with a particular emphasis on raising the proportion of income sourced from foundations and donations. We are pleased to see that our dependence on the Dutch government dropped to 39% of total income.
The share of income from foundations increased by 18% compared to 2022. Half of this was attributable to TNI’s own efforts, and saw two new foundations directly supporting TNI projects. An additional five new foundations supported fiscally sponsored projects.
Own sources as a proportion of total income decreased 1%, although the absolute amount was considerably more than in 2022 as is reflected by our result for 2023.
We were very pleased to fill our vacancy for a Fundraising Coordinator towards the end of 2023, whom we are confident will help us progress towards the goal of a more diversified funding base. We also began our own online bookshop in 2023, which we hope will open a modest new stream of own income.
| Source | Specification | % of total income in 2023 | % of total income in 2022 |
|---|---|---|---|
| Dutch government | Netherlands Ministry of Trade & Development | 38 | 42 |
| Other public sources | Swedish International Development Agency; Swiss Development Cooperation; Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH | 14 | 27 |
| Philanthropic foundations | Open Society Foundation; Rockefeller Brothers Fund; Climate Emergency Collaboration Group; European Cultural Foundation; Rosa Luxemburg Foundation; Friedrich Ebert Stiftung, Funders for Fair Trade,Thousand Currents, Gower Street, Benevolencia/Porticus, Foundation for a Just Society, Nebula Fund, Wallace Foundation, Movement Support & Covid-19 Relief Fund, Agroecology Fund. | 43 | 24 |
| European Union | Development Education and Awareness-Raising; Justice and Home Affairs; Erasmus+; H2020; EuropeAid | 2 | 3 |
| Own means | book sales, donations, currency gains, interest, consultancies/secondments | 3 | 4 |
SOURCES OF FUNDING
2023 (outer) vs 2022 (inner)
Annual Income
In 2024, financial sustainability remains the main high priority risk to be managed. The strategy will include further reducing proportional dependence on the Dutch government, particularly in light of the political shifts anticipated following the elections at the end of 2023. This will require a focus on securing core and multi-annual project funding from a diverse range of sources. To this end, TNI will invest in training of staff in project development and fundraising, and we will develop new strategies based on an analysis of the changing funding landscape and TNI prospects.
2. Transitions
Since 2021, in line with our five-year strategy, TNI has been implementing some major organisational changes which have required careful management to prevent the risk of disruption. This has included reorganising projects under a reduced number of programmes, appointing new programme coordinators, and establishing a Knowledge Unit. In 2023, the emphasis was on supporting Programme Coordinators in their new roles, increasing the staff capacity of the Knowledge Hub and completing the process of expanding the international fellowship by welcoming 25 new members to TNI. We also continued to improve induction procedures, and to ensure all staff are well informed about how internal decision-making processes work, including clarifying responsibilities, boundaries of authority, and lines of accountability. We ended the year satisfied that the change management process has been effected smoothly.
In 2024, the emphasis will be on further training in project development and fundraising, integration of the new members of the fellowship, and acquiring ISO 9001 certification.
The next challenge concerns the generational transition which will occur over the next four years as older senior staff retire. We expect two retirements at the end of 2024, one in 2026, one in 2027 and one in 2028. In 2024, we will develop a transition plan to ensure continuity in essential functions.
3. Security and safety
Security and safety continued to be a key risk monitored in 2023, particularly in light of the war in Myanmar, and worsening repression of activists in a number of countries where TNI has team members, fellows and partners. We also continued to keep an eye on adherence to ICT policies and improving security measures in light of the increasing prevalence of cyber-crime and the risk of data breaches.
3.1 Increased repression
Repression was a priority risk to manage for 2023, with a particular concern for Myanmar, as well as team members, fellows, partners and allies in other high-risk countries. One member of our Fellowship was arrested on spurious charges in Russia in 2023, for example, which saw a concerted international campaign for his release. We adhered closely to protocols developed for safe communications, and mobilised international attention and amplified calls for solidarity where necessary. This became increasingly important with the genocidal war waged against Palestinians by the Israeli military from the last quarter of 2023, and the attempts to muzzle or discredit critical voices that has accompanied this.
In 2024, we will remain vigilant with respect to safety under conditions of increased repression.
3.2 Data security and safe communications
TNI has had a comprehensive Information & Communication Technology (ICT) policy in place for some years now, including data protection, data security and data breach policies and procedures. Our ICT team conducts regular education of staff in this regard, working one-on-one with staff as required.
In 2023, our auditors again took a close look at our IT systems, confirming we have good systems in place. We completed the process of moving all team members onto a common password manager, and undertook an internal review of our ICT policy. We also did training on collective resilience in the face of online hate.
In 2024, data security and safe communications remained a priority risk area to monitor and regularly upgrade. We will ensure 2FA authentication for all key software, including timesheets, invoice processing and email.
