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By Melanie Lockwood Herman
As an advisor to nonprofits striving to better understand and cope with myriad risks, I spend a lot of time trying to come up with practical solutions to complex problems. As anyone who’s worked with the Center knows, we don’t offer “systems” ready-made for installation. We try to understand an organization’s context and capabilities before saying a word about what might work. Yesterday during a meeting with a group of dedicated leaders, I began to mull over two common mistakes in risk management practice:
I’m convinced we need to be thoughtful and vigilant to avoid committing either error. With respect to the first error, we need to acknowledge that many of the risk issues facing nonprofits simply cannot be quickly understood or resolved. Far too many agency leaders have learned the hard way that conducting pre-hire/pre-service and periodic in-service criminal history background checks does not eliminate the risk of client victimization. Every organization that screens prospective volunteers and staff must recognize that the risk of victimization remains. In addition to inherent complexity, some risk issues morph faster than even the brightest risk manager can re-issue or update a set of policies. If your nonprofit serves children who own smart phones, then you’ll know what I’m talking about.
The second error is equally troubling. If you’ve ever reviewed (or approved!) a draft policy written in legalese instead of plain English, you’ll know what I’m talking about.
Despite my worry about committing both errors, I still believe that it is possible to look for straightforward approaches to coping with uncertainty without oversimplifying our understanding of a particular risk. Recently I saw a sign that I believe does just that. The sign read, “If You See Something, Say Something™.” I’ve since learned that the phrase was originally adopted by the New York City Metropolitan Transportation Authority and was licensed to the Department of Homeland Security in July 2010. Although I didn’t know its origins at the time, I knew exactly what that phrase meant. I can’t help but think that so many of the rules nonprofits routinely adopt could be summarized in that simple statement. Whether you’re focused on protecting youth, creating an environment hostile to fraud, or working to improve the respect and consideration shown to each and every client, member, consumer or visitor, “If you see something, say something” says it all.
In any nonprofit, an effective risk management program needs far more than a handsome collection of policies approved by counsel. We need many sets of eyes and ears observing and experiencing the consequences of risk-taking and risk management practice in our real world. We need to persuade everyone in a service role, as well as participants, their parents, and advocates, that we want and need them to step forward. Tell us about anything that makes you uncomfortable, ill-at-ease, or concerned. When the people who serve and receive services join together to observe and report, you will build an unshakable foundation on which your nonprofit mission can thrive.
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!