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By Melanie Lockwood Herman
For some, an updated prescription from an optometrist is the perfect reason to pick out a new pair of frames. For me, a new prescription led me to purchase vintage frames, which required finding a company offering a “re-lens” service. Many retailers with optical departments are risk averse: refusing to put new lenses in an older frame due to the risk of damaging a frame that can’t be readily replaced. The process of ordering new lenses to fit an old frame got me thinking about lenses—devices that focus or modify the direction of light.
During NRMC-led Risk Assessments, our clients often identify their desire for an independent view as a key motivation for engaging our team. But we recognize that NRMC’s independent lens is limited by the professional experiences and worldviews that each team member brings to a project. So a first order of business in a Risk Assessment is soliciting input from a client’s internal stakeholders who have different points of view about the nonprofit’s history and vision for the future, as well as the risks that could bolster or impede success.
This week I’ve been reading about the work of educator, systems scientist, professor and author Béla H. Bánáthy, whose research included exploration of three different models or lenses through which to understand complex systems:
I’ve long admired a colleague’s systems approach to risk management, which I’ve seen as a contrast to my tendency for linear thinking. Bánáthy’s work has helped me understand that there is more to systems thinking than first meets the eye! Perhaps incorporating all three lenses is the best approach to developing a richer understanding of the risks facing a nonprofit.
Explore these key questions suggested by my colleague Erin Gloeckner to hone in on three risk assessment perspectives inspired by Bánáthy’s models.
Melanie Lockwood Herman is Executive Director of the Nonprofit Risk Management Center (NRMC). Melanie welcomes your insights on risk assessment perspectives 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.”
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“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!