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Recently, an NRMC Affiliate Member wrote to our team asking how to convince her peers that risk management is in fact a mission driver, rather than a drag. Buy-in for risk management initiatives is sometimes hard to obtain because team members are resistant; the other side of the problem is that sometimes risk practitioners inspire resistance by being buzzkills: “people who have a depressing or dispiriting effect.”
One way that some risk practitioners sabotage their own smart strategies is by making risk management rules and regimens more complicated than necessary. We can change that. To separate the Risk Champions from the buzzkills, I wrote a response to our Affiliate Member titled, “If You Hate Risk Management, then You’re Doing It Wrong.” Our Affiliate Member kindly allowed us to share an excerpt:
Some of your peers recently expressed concern about risk management causing “organizational drag:” impeding or slowing down your progress toward your shared goals and mission. I’ll admit that risk management can be a drag… if you’re doing it wrong. Let’s distinguish forms of ineffective, drag-causing risk management from effective, mission-advancing risk management.
Ineffective, drag-causing risk management employs a philosophy of risk-aversion: protect against risk by avoiding risk or by not doing the programs/projects that you want to do. This form of risk management drives a policing mentality and causes team members to feel that risk management holds them back from doing their jobs.
Effective, mission-advancing risk management employs a philosophy of risk-taking: guard against threats in order to operate more effectively, thus enabling a team to take more risk on ventures that offer greater potential to advance the mission. This form of risk management drives a risk-aware culture, which encourages team members to consider risk and uncertainty whenever they make decisions. If you consider and anticipate the possible outcomes of any decision or action, then you’re probably making a more informed decision. You’re also preparing to adapt when things turn out differently than you expect. In essence, you’re developing resilience. Resilient organizations can withstand greater threats to their missions, and they can take on more “risky,” innovative programs in order to achieve their objectives and serve their target communities. Risk management = resilience = mission mojo.
If you hate risk management, it’s probably because you’re practicing the risk-averse form described above. How can you transform your risk management efforts into the mission-advancing kind? …
Changing your mindset is the first step in transforming from a buzzkill to a Risk Champion. A risk practitioner’s personal change will then begin to inspire renewed trust and participation from peers, who will gravitate toward a team member who paves the way for risk resilience and effective decision-making.
Cancel your buzzkill membership and join the Risk Champion club today! After mastering your new mindset, here’s how you can continue your transformation:
Erin Gloeckner is the former director of consulting services at the Nonprofit Risk Management Center. NRMC welcomes your advice about bold risk leadership at info@nonprofitrisk.org or 703.777.3504. Please, no calls from buzzkills.
Enjoy these other NRMC articles that offer insights for cultivating a risk-aware culture and for driving participation in risk management initiatives:
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“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.”
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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!