Estimated Reading Time: 4 minutes
By Melanie Lockwood Herman
Nothing makes me feel older than when my daughter changes the radio station in the car and her choice of music makes me wince. The music on her preferred “hit music” stations generally strikes me as simplistic, absurdly repetitive and in some cases, mildly offensive.
But sometimes her choice is a pleasant surprise, and I find myself asking the name of the band. She is predictably exasperated when I don’t immediately recognize the artist and song title. Every once in a while she settles on a station playing a song I actually recognize. Before we can sit back, relax and enjoy the music, we try to figure out whether the song is familiar to me because it’s an oldie reinterpreted by a young pop star. While I love discovering a great new song, I also enjoy hearing new interpretations of familiar favorites.
During several recent consulting engagements, I’ve found myself reinterpreting familiar risk management advice to fit the modern context that is a backdrop for today’s nonprofit organization. The classic risk management strategy of activating a phone tree to alert stakeholders about a crisis has been replaced with multi-channel, automated broadcast messaging through email, SMS, voice, RSS, and social networks. The standard advice to strictly enforce workplace rules is displaced by my recommendation to take a nuanced look at the intersection of hard and fast rules and evolving workplace culture in order to fine tune policies that better suit the multigenerational workers who manage today’s nonprofit missions.
Celebrating long-standing traditions while being open to new strategies may be the best approach. When your knee jerk reaction is to skip over the popular music stations, you may be missing a clever new song, talented young performer, or interesting interpretation of a classic melody.
Here are a few risk management traditions worth preserving:
I’ve often heard that the most effective risk champions in the nonprofit sector wear “several hats” and bring multiple talents to the table. The role of risk leader requires great listening skills, analytical ability, curiosity, and coaching talent. But in addition to these and other talents and skills, the role of risk champion also requires openness to what’s new, what’s next, and what might happen to advance or impair the nonprofit’s ability to achieve its strategic objectives. Which means that while it’s important to appreciate the classic hits of yesteryear, you need to be open minded and game to the possibility of hearing a new favorite on the “hits” station on your FM dial.
Melanie Lockwood Herman is Executive Director of the Nonprofit Risk Management Center. Her favorite interpretation of a classic song is Dryden Mitchell’s version of The Cure song, “Friday I’m in Love.” She welcomes your recommendations about great music, 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!