The Grand Finale
Estimated Reading Time: 2 minutes
Executive Director
By Melanie Lockwood Herman
It’s finale week on reality TV. Several of the most popular reality shows on network television wrap up this week, with winners and “losers” receiving prize money, trophies, apprenticeships and recording contracts. In my experience many nonprofit leaders approach the process of managing risk as a seasonal exercise. In the view of some, the risk management process concludes with: the completion of a risk management plan, the formation of a risk management committee, or the discussion of critical risks at the spring board meeting.
A closer examination of the discipline of risk management reveals its unending nature. Sound risk management begins long before the participants enroll and continues long after the season draws to a close. Risk management is a year-round, rather than a seasonal activity.
This week a nonprofit leader contacted the Center to request a recipe for a risk management program. Just as altitude, oven type and cooking vessel affect the length of time required to bake the perfect cheesecake, there is no single risk management “recipe” that will work in many or most organizations. Yet like the basic ingredients found in the pantry of experienced home cooks, the ingredients of a successful program include:
- The willingness to examine past losses (including near misses) without losing focus on future possibilities;
- The commitment to engage and involve a diverse group of stakeholders in exploring the nature of risk in the nonprofit;
- An appetite for considering multiple versions of the nonprofit’s “future”;
- Appreciation for the need to explain the “why” behind the nonprofit’s safety policies as well as the “what”; and
- Patience in whatever dose is required to explain, demonstrate, coach, mentor, and model the changed behaviors and discipline thoughtful risk management strategies require.
Unlike the predictably short season of serial television programs, risk management has a long season. As you examine, re-examine and work to improve the strategies in place to increase the confidence of stakeholders, remember that what truly matters is the mission. I have a hunch that your commitment to the mission will inspire and sustain you in the journey.
Melanie Lockwood Herman is Executive Director of the Nonprofit Risk Management Center. She welcomes your feedback on this article and questions about the NRMC’s resources at Melanie@nonprofitrisk.org or 703.777.3504.
“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.”
— Scott Brown, Mohonk Preserve
“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.
— Sidney Abrams, BBYO
“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.”
— Pamela Mattel, Basics Promesa Systems Inc
“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.”
— Jodi Spataro, Community Foundation of Elkhart County
“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.”
— Marti Worshtil, Prince George’s Child Resource Center
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!