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By Whitney Thomey
Evolution of risk management programs happens in many ways. However, expansion usually involves infusing risk awareness into decision-making and routine activities. Doing so often requires the thoughtful consideration of how new risk-related activities will be dispersed among the team. During the past year, we’ve been asked by several organizations to weigh in and support the design of new risk roles, the revamping of existing roles, and the recruitment of risk leaders.
Recently, the NRMC team has assisted clients by supporting and leading several processes that ultimately placed a brand-new Director of Risk Management or Director of ERM. Through this work, we’ve realized that a deliberate approach to recruitment, screening, and onboarding is invaluable. Such a process has the potential to transform risk functions and capabilities with the arrival of a new risk leader.
If you’re considering adding a dedicated position to champion risk management at your nonprofit, it’s possible that you might identify with these statements:
While it’s true that a Director of Risk Management can advance and evolve risk functions at your nonprofit, not every organization will need a dedicated position to achieve its risk goals. To better understand if you’re ready to develop this role for your organization, consider these statements:
If these statements resonate with you, it’s possible that your organization would benefit from developing a separate position to champion your risk program.
On the other hand, if there’s concern for how to articulate the duties a new risk leader would take on, or your organization is experiencing a power struggle to determine who a Director of Risk Management would report to, now’s not the time to add a new position! Instead, consider gathering a focus group to examine your risk function closely and map out what your mature risk program would look like. From there, ask team members to consider and catalog the types of risk-related activities they perform daily for 3 months. With this detailed data, leaders may find clarity for how a separate position may be able to direct, champion, and evolve the risk program.
After establishing support and buy-in to develop a dedicated risk leader position, there are several steps leading up to the recruitment process and post-hire that can set the stage for success and smooth the transition of centralizing a risk function led by a new position.
Deciding to create a risk leader role has less to do with the size of your organization, the complexity of your risk program, or the collection of risks facing your organization. Instead, it has more to do with the importance of taking risks to advance your mission and recognition of the potential value of having a subject matter expert on hand. Through thoughtful planning and execution of a deliberate development, recruitment, and onboarding process, the addition of a new risk leader becomes a worthy adventure to fortify your mission.
“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!