Risk Management Essentials
Articles from the Winter 2010 Print Edition
For the PDF version, click here.
Going Up? Elevator Talk, Risk Management and the Nonprofit Board
By Melanie Lockwood Herman
The Board of Directors sits atop the organizational chart of a nonprofit organization. Board issues are either self-initiated or are “elevated” by staff for board consideration. Both approaches are inherently necessary to the board’s governance role. And while there are myriad definitions, governance is essentially the “means in which the leading authority, often the board of directors…guides and monitors the values and goals of its organization through policy and procedures.” Source: Philanthropic Foundations Canada. more…
New Risk Management Tools Now Available
The Nonprofit Risk Management Center has released two online tools designed to help nonprofit leaders position their organizations for success.
The first tool, found at www.MyRiskManagementPolicies.org is an easy-to-use program that allows you to create clear, concise, and customized risk management policies to meet the needs of your nonprofit organization. The tool was developed to help leaders avoid the mistake of using ill-suited policies found online or borrowed from other organizations. Creating practical policies that are unique to your nonprofit is an important component of risk management. But instead of effectively managing risk, leaders who “borrow” the policies of another nonprofit may actually increase their exposure to loss by adopting a policy that is beyond the reach of their nonprofit. Using a policy designed for a larger or substantially different nonprofit can expose a nonprofit to liability when the organization is unable to follow the policy to a “T.”
My Financial Management Plan, found at www.MyFinancialManagementPlan.org, to guide leaders in updating the components of their financial management systems and integrating these components into a cohesive plan. This powerful system features 21 modules, covering topics such as Board Fiduciary Obligations, Managing Fraud Risk, Managing Cash Flow, Return on Investment Analysis, Cost Allocation, Classifying Net Assets, Budgeting, and Grants and Contributions. more…
Online Social Networks, CyberRisk and Your Nonprofit: What You Need to Know
Online social networking sites, such as the popular offerings provided by MYSPACE, FACEBOOK, TWITTER, and LINKEDIN, offer new ways for nonprofits to connect and interact with key stakeholder groups and the community at-large. An online networking site can offer opportunities and rewards due to the ease with which a nonprofit can rapidly spread or easily target a message or communication. Incorporating the use of social media and online networking sites into a nonprofit’s larger communication or marketing strategies, however, raises a number of potential legal risks and associated liability exposure. With advance planning, these risks can be managed effectively. The following is a non-exhaustive list of legal tips and issues to consider in connection with using social networking sites or social media either to create/manage content or to send or sponsor content. The following tips also can be considered with respect to the types of policies and guidelines to implement with stakeholders who connect with your nonprofit through an online social networking site. more…