Learn how risk assessments strengthen federal grant management. Explore Uniform Guidance requirements, best practices, and how training and webinars can help your team reduce compliance risks.

Every federal grant comes with responsibility—not just to achieve project goals, but also to manage taxpayer dollars with integrity. That’s where risk assessments come in.

A risk assessment is the process of evaluating your organization—especially your potential partnerships with contractors and subrecipients—to identify areas where compliance problems could occur. By spotting potential issues early, you can put safeguards in place before small problems turn into major findings.

The Uniform Guidance (2 CFR 200.332 and 200.303) specifically requires risk assessments as part of internal controls and subrecipient monitoring. They aren’t just best practice—they’re federal expectations.

A thorough risk assessment should evaluate both financial and programmatic risks. Common areas include:

• Financial management systems: Are your accounting and reporting systems reliable and accurate?
• Internal controls: Do you have safeguards to prevent fraud, waste, and abuse?
• Staff experience: Are team members trained in grant compliance and the Uniform Guidance?
• Subrecipients and contractors: Do partners have a history of compliance or findings?
• Past performance: Have prior audits, site visits, or monitoring flagged issues?

These categories are frequently highlighted in federal grant management training programs because they show auditors and funding agencies whether your organization can manage federal funds responsibly.

1. Build Risk Assessments Into Your Process

Don’t treat risk assessments as a one-time activity. Conduct them before issuing subawards and revisit them regularly during the life of the grant. This should be part of your internal controls process.

2. Use a Scoring System

Rate partners or processes as low, medium, or high risk. This helps determine the level of monitoring or oversight required.

3. Document Your Review

Keep written records of the factors you evaluated and the steps you plan to take in response. Auditors will expect to see this documentation.

4. Connect Risk Assessments to Monitoring Plans

Your monitoring approach should reflect the level of risk. High-risk partners may require more frequent reviews or additional documentation.

Risk assessments aren’t just another compliance requirement—they’re a practical tool for managing federal funds effectively. By identifying potential challenges in advance, you protect your organization, strengthen accountability, and give funders confidence in your ability to deliver results.

Want to go deeper? Our grant management courses and webinars include practical tools for building and documenting risk assessments that meet Uniform Guidance expectations—helping your team reduce risk and strengthen compliance.