Risk perception and management in development philanthropy

Sargeant & Shang investigate how high-net-worth philanthropists manage risk in international development. Based on interviews with 20 donors, they identify a five-step process: defining risks, evaluating severity, shifting mindset, coping emotionally, and leveraging past experience. The authors contend that deliberate and systematic risk management enhances philanthropic effectiveness and strengthens donor resilience, allowing for more impactful and sustainable engagement in complex development initiatives.