Estimated Reading Time: 4 minutes
By Melanie Lockwood Herman
We asked RISK eNews readers to weigh in on the top governance-related risks and challenges facing their organizations. Thank you to everyone who responded to our governance risk survey! With 67% of respondents ranking the issue as a #1 or #2 concern, the top board-related risk and worry was: “inadequate pipeline for board talent.”
Second and third place finishers in our governance risk poll were:
Lower on the list of governance risks were tension between board and management, and conflict between board members.
Surprised by our poll results? Do these results resonate with your experience? At NRMC we receive numerous calls about the low-ranking worries in our poll, and far fewer about the top rated concern: lack of a talent pipeline for board leadership. One possible explanation for the disconnect between the frustrations leaders share with a risk coach and the concern causing them to lose sleep, is that the lack of a pipeline for board leaders is something we’re not comfortable talking about, especially with outsiders. Unlike an external risk–one over which a staff team exercises minimal control–the lack of an adequate talent pipeline is something you can and should do something about.
Here are a few tips on board development from our team’s experience advising and serving on nonprofit boards.
SOURCE: What Makes for Successful Boards? 2017 ASSOCIATIONS NOW, Board Brief: A Quick Guide to Volunteer Leadership (several studies are cited in this excellent article)
Read the following additional articles about governance risk and reward on the new https://nonprofitrisk.org/:
Melanie Lockwood Herman is Executive Director of the Nonprofit Risk Management Center and a trusted advisor to nonprofit boards and leadership teams. Melanie’s consulting work includes leading governance-themed risk assessments, ERM engagements, and youth protection initiatives. Melanie invites your inquiries about NRMC consulting services at 703.777.3504 or Melanie@nonprofitrisk.org.
“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 the Center 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 the Center. 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 Center 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!