Discussing Risk at Your Nonprofit Organization

risk management for nonprofitsHow often does the word “risk” come up in conversation among you, your employees, and your board members? While talking about the what-ifs and what could go wrong may sometimes seem pessimistic, the Nonprofit Risk Management Center emphasizes that a candid discussion on risk is “essential to fortifying your nonprofit’s reputation and mission, and providing a safe environment for the people who serve and those who rely on you for services.”

But how do you even go about bringing up the subject of risk, let alone having a productive conversation on the topic? The following are some tips the Nonprofit Risk Management Center recommends:

– Don’t limit the conversation to those who deal with risk management. Invite staff members from all departments, as well as board members, to participate in the conversation. A diverse group means each area of concern can be addressed.

– “Separate apples and oranges” by coming to an agreement on what the word risk means, and remember that risk can mean events that could affect your organization’s objectives, an underlying issue or condition, or the potential for an undesirable outcome.

– Avoid limiting risk conversations to worst-case scenario situations. Encourage your team to consider and discuss potential outcomes that you would consider “better-than-hoped-for” when a risk is taken.

How do you address starting risk conversations in your nonprofit? Leave a comment below to share your strategies and ideas with us!

The best way to protect your nonprofit from risks and exposures is with a comprehensive insurance plan. Lamb Financial Group offers a variety of insurance programs, as well as risk management services, for nonprofits in New Jersey, New York, Pennsylvania and beyond. Contact us at 1-866-481-5262 to learn more about our offerings or browse our website for more information.

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