Risk management in third sector entities

Abstract

Third sector organizations have gained prominence in the Brazilian social landscape due to their work in key areas such as education, health, culture, the environment, and social inclusion. However, their sustainability is often threatened by financial, operational, legal, and reputational risks, which are intensified by the dependence on single sources of funding, such as government agreements and specific donations. In this context, risk management emerges as a strategic and essential tool to ensure the continuity of social projects, preserve institutional credibility, and promote organizational resilience. This article aims to analyze risk management in third sector entities, investigating how dependence on concentrated funding sources affects their sustainability and decision-making processes. The research adopts a qualitative approach, based on a bibliographic review and multiple case studies, and employs content analysis to interpret the data. The findings indicate that the lack of structured risk management practices and technical training makes these organizations vulnerable, hindering their ability to adapt to crises and external changes. As a strategy, the study proposes diversifying funding sources and strengthening internal control and governance processes. By addressing a gap that remains underexplored in the academic field, this research contributes to improving management in the third sector and consolidating more effective and sustainable practices in social organizations.