Estimated Reading Time: 4 minutes
By Melanie Lockwood Herman
I can’t help but smile when a friend or colleague recommends a favorite book. And although I’m not afraid to tackle a book that I know little about, I’m much happier opening the cover of a book that comes with a personal recommendation. During a recent trip to Orlando, a client recommended the book “Simple: Conquering the Crisis of Complexity,” by Alan Siegel and Irene Etzkorn.
My client warned me that the book contained a few unflattering examples from the worlds of insurance and the legal profession. For someone who gets paid to read insurance policy language and interpret wordy contracts, I can’t say I was surprised! And it didn’t take me long to notice that the entire book contained fewer words than a typical nonprofit D&O policy.
To create a backdrop for the argument that simple generally trumps complicated, the authors share stories about the consequences of complexity. Citing a study by the National Association of Insurance Commissioners, the authors explain that “one-third to one-half of insurance policyholders were misinformed about what perils are covered and how much they might receive if they made a claim.” I have a hunch that percentage might be even greater for buyers of commercial coverage. To describe insurance policy language as complicated is an understatement.
Siegel and Etzkorn describe simplicity as something that inspires confidence. Given our view—borrowed from founding board member, Felix Kloman—that the fundamental purpose of risk management is to inspire confidence, simplicity and the discipline of risk management deserve to be paired up. The authors explain: ‘When you reach a point where you have achieved transparency (laying bare the underlying truth whatever it reveals), clarity (expressing meaning clearly and simply), and usability (making something fit for its purpose), you have achieved simplicity.” What a wonderful model for risk management policy and practice!
Some of the “simple” tips and insights in the book include:
This week our intrepid Project Manager, Erin Gloeckner, leaves the Center to pursue a graduate degree in public health at Virginia Tech. During the past 15 months Erin has provided invaluable leadership and support in every facet of our work. As the author of countless RISK eNews columns, newsletter articles and consulting reports, and as the designer of some pretty cool Prezi presentations, Erin’s contributions are too numerous to count. She is fearless, intuitive, organized, humble, and one of the most talented writers I’ve ever worked with. And if that weren’t enough, her warmth, candor, sense of humor and genuine excitement about the missions of our clients, made her a joy to work with each and every day. I’ve concluded that Erin isn’t “replaceable,” she’s one of a kind. The staff and board of the Center wish Erin great success in her next adventure! Our secret hope is that she’s become hooked on nonprofit risk management and will decide to return to us after she conquers graduate school.
Melanie Lockwood Herman is Executive Director of the Nonprofit Risk Management Center. She welcomes your ideas about any risk management topic, suggestions for best-in-class risk management, and questions about the Center’s resources at Melanie@nonprofitrisk.org or 703.777.3504. The Center provides risk management tools and resources at www.https://nonprofitrisk.org/ and offers consulting assistance to organizations unwilling to leave their missions to chance.
“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!