Estimated Reading Time: 5 minutes
Executive Director
“Daring and prudence, when used together, lead to new and safe structures.” – Why Buildings Fall Down
I was reminded of several risk practice fundamentals this week while reading a fascinating book, Why Buildings Fall Down. The book chronicles structural failures, including the collapse of dams, bridges, stadiums, and buildings, and focuses on the potential causes of each failure, from lack of redundancy to metal fatigue and even “the law of nature’s laziness.” The structural and engineering failures described by authors Matthys Levy and Mario Salvadori include the destruction of ancient to modern-day buildings, as well as iconic and lesser-known structures. Despite the dark themes of failure and destruction, I found the lessons on learning from loss both relevant and hopeful.
My dad is well known for his fashion, but not necessarily his fashion sense. He wears the same pants/shirt pairing every day, to simplify the process of getting ready in the morning. Recently he added a ‘belt and suspenders’ look. Family and friends often comment on his unique post-retirement uniform. Merriam-Webster’s definition of ‘belt and suspenders’ refers to the use of “multiple methods or procedures to achieve a desired result especially out of caution or fear of failure.” When I hear the term, I can’t help but think of dad’s belt and suspenders get-up, as well as the relevance of redundancy in risk management. Employing multiple strategies to better ensure the safe and effective delivery of programs and services also builds the nimbleness needed to change course when ‘stuff’ happens.
Although disruption and even disaster can’t be avoided altogether, risk leadership teams can take steps to ensure that their missions stand up to the powerful forces of nature and humankind. Nonprofits—with armies of passionate stakeholders—arguably have resilience woven into their DNA. Confidence in the face of risk is key to seizing opportunities and requires equal measures of thoughtfulness, planning and vigilance. Levy and Salvadori write: “Today we can be more confident than ever of our designs and hence more innovative, but if wise, we are also perpetually vigilant. This is why almost all of our structures stand up.”
Melanie Lockwood Herman is Executive Director of the Nonprofit Risk Management Center. Melanie invites your stories of nonprofit redundancy and vigilance at Melanie@nonprofitrisk.org or 703.777.3504.
“First let me congratulate you on a conference well done. I had a great time at the Nonprofit Employee Benefits Conference and walked away with some valuable tools and questions that we’ll need to be addressing in both the short and long term. Thanks to you and your staff for all you do to provide us with quality resources in support of our missions.”
“BBYO’s engagement of NRMC to conduct a risk assessment was one of the most valuable processes undertaken over the past five years. Numerous programmatic and procedural changes were recommended and have since been implemented. Additionally, dozens (literally) of insurance coverage gaps were identified that would never have been without the work of NRMC. This assessment led to a broker bidding process that resulted in BBYO’s selection of a new broker that we have been extremely satisfied with. I unconditionally recommend the Center for their consultative services.
“Melanie Herman has provided expert, insightful, timely and well resourced information to our Executive Team and Board of Directors. Our corporation recently experienced massive growth through merger and the Board has been working to better integrate their expanded set of roles and responsibilities. Melanie presented at our Annual Board of Director’s Retreat and captured the interest of our Board members. As a result of her excellent presentation the Board has engaged in focused review which is having immediate effects on governance.”
“The Nonprofit Risk Management Center has been an outstanding partner for us. They are attentive to our needs, and work hard to successfully meet our requests for information. Being an Affiliate member gave us access to so many time- and money-saving resources that it easily paid for itself! Nonprofit Risk Management Center is truly a valued partner of The Community Foundation of Elkhart County and we are continuously able to optimize staff time with the support given by their team.”
“The board and staff of the Prince George’s Child Resource Center are extremely pleased with the results of the risk assessment conducted by the Nonprofit Risk Management Center. A thorough scan revealed that while we are a well run organization, we had risks that we never imagined. We are grateful to know that we have now minimized our organizational risks and we recommend the Center to other nonprofits.”
Great American Insurance Group’s Specialty Human Services is committed to protecting those who improve your communities. The NRMC team has committed to delivering dynamic risk management solutions tailored to nonprofit organizations. These organizations have many and varied risk issues, hence the need for specialized coverage and expert knowledge for their protection. We’ve had Melanie speak on several occasions to employees and our agents. She is always on point and delivers such great value. Thank you for the terrific partnership and allowing our nonprofits to focus on their mission!