Risk Management

Risk applies to any management decision that could have a negative result. Even with a negative result, the outcome could have been mitigated with good risk management. You need to evaluate - as much as possible -- all the possible results of any decision and determine how risk can be reduced. This week's articles can help with these efforts.

Simply having the tools and structure may not be enough to insulate your nonprofit from the cold breezes and after-shocks of unmanaged risks. (Item #1)   Obtaining an independent review of your volunteer policies before you implement them is an excellent risk management strategy. (Item #2)   Managing special event risks requires equal measures of awareness, planning, diligence and team work. (Item #3)  

A good Risk Management System will help you reap the rewards of your efforts to set up and run your business. (Item #4)   To change the way we think about risk, we must avoid making six mistakes. (Item #5)   Data breaches-the theft, loss or unintended exposure of personally identifiable information-have compromised hundreds of millions of personal records in recent years. (Item #6)  

As always, we look forward to hearing your comments & insights regarding business continuity. If you have a topic you'd like us to cover, email me at [email protected].

Bob Mellinger, President
Attainium Corp

1. Culture Shock: Embracing Risk Management is Necessary, But Never Easy

Many leaders begin their risk management journey by seeking examples of policies and procedures used by similarly situated nonprofits. Finding and adapting the tools for managing risk in your nonprofit is not the biggest challenge you face. The hardest part of effectively managing risk is changing the culture of your organization.
http://www.nonprofitrisk.org/library/articles/rmbasics010209-2.shtml

2. Measure Twice, Cut Once: The Science of Volunteer Risk Management

While there are nuances of effective volunteer management that depend on the culture, mission and programs of your nonprofit, there are some aspects that must be followed like the directions for an angel food cake: don't mess with the recipe.
http://www.nonprofitrisk.org/library/newsletter/measure_twice.shtml

3. Managing Special Event Risks

Well-planned and executed special events can bring positive publicity, new donors and an infusion of cash to a nonprofit. But events that don't integrate sound risk management can spell disaster for both the mission and the future of a nonprofit.
http://www.nonprofitrisk.org/library/articles/rmbasics060709.shtml

4. How to Manage Business Risk: Risk Management Program

The success of a Risk Management System requires a business owner to comprehensively follow the steps laid out in the system and practice strict adherence to the rules. A good Risk Management System should include the five steps in this article.
http://www.morebusiness.com/running_your_business/businessbits/Business-Risk.brc

5. The Six Mistakes Executives Make in Risk Management

Instead of trying to anticipate low-probability, high-impact events, we should reduce our vulnerability to them. Risk management should be about lessening the impact of what we don't understand-not a futile attempt to develop sophisticated techniques and stories that perpetuate our illusions of being able to understand and predict the social and economic environment.
http://hbr.org/2009/10/the-six-mistakes-executives-make-in-risk-management/ar/1

6. The Growing Wave of Data Breach Litigation

Given the scope of the problem, it should be no surprise that data breaches have led to expensive litigation, including attempted class actions. So far, however, these actions have met with little legal success (as distinguished by sizable costs and settlements). But considering the scope of the risk, it would be wise for companies to be familiar with the important decisions in this area.
http://www.rmmag.com/MGTemplate.cfm?Section=MagArchive&NavMenuID=304 &template=/Magazine/DisplayMagazines.cfm&Archive=1&IssueID=341&AID=4015 &Volume=56&ShowArticle=1