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NEWS DETAILS
| Evalute Risk, But Take Some: Monthly Tip from NRMC |
| 2/3/2009 |
Risk Management Tips of the Month for 2009
This year each month’s tip is based on one of the Hallmarks, a free online resource terrific for helping nonprofits take their risk management practices to the next level – and for providing organizations with inspiration and practical tools that help trustees, staff leaders and volunteers become more risk-savvy.
January 2009 – Tip of the Month
A nonprofit cannot go about its daily work of mission fulfillment without taking risks. Why be risk-averse when you can be risk-savvy and benefit from the opportunities that the current environment affords? Hallmark #1 is that the organization takes more risks than it avoids. When risks are carefully considered and corresponding strategies are developed to minimize the likelihood and cost of negative outcomes, each “risk” becomes a unique opportunity for a positive outcome.
Evaluate risk-taking: Explore why some risks do not pay-off but others do. Review risks the organization has taken and those it has avoided. Evaluate which risks have resulted in positive outcomes—and which did not. Then think about why—and whether there were better alternatives. This works well as the topic for discussion in a trustee or staff meeting, as a warm-up during the strategic planning process, or as a New Year’s project for a risk management committee.
Be clear about certain risks the organization is willing to take while at the same time clearly communicating the limits of other risks. For instance, provide donors with a gift acceptance policy that defines certain types of donations that the organization is NOT willing to accept.
To see more tips and practical suggestions on taking risks (or submit your own) take a look at other tools offered by the Nonprofit Risk Management Center to support Hallmark #1.
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