As we have explained in prior posts (beginning here), after you begin implementing nonprofit risk management, you reduce anxiety and start earning the rewards of clarity, peace of mind, and value. Your journey continues as you add other nonprofit tools and practices to your organization. As described below, you become ADEPT, growing your capacity according to your organization’s needs.
A nonprofit leader at the ADEPT stage of Lean Risk Management™ identifies herself by certain core characteristics that depend upon the size and sophistication of her organization.
ADEPT 101 – Smaller Nonprofits
At the 101 level:
- You have worked with your board members to adopt a written risk management policy.
- Your nonprofit organization has adopted a formal risk process pursuant to that policy.
- You have modified your risk register periodically as a result of developing a regular cadence of risk management check-ins.
- You have trained your board about its role in risk management. And
- You are regularly feeling the benefits of the 5 C’s (clarity, context, contribution, confidence, and capturing value).
ADEPT 201 – Larger Nonprofits
At the 201 level, including larger organizations or those that have a mature risk management process, an adept nonprofit has taken all of the 101 steps, but has begun to use more advanced risk assessment techniques. These may include:
- Using an A3, risk report, or other structured process to address potential risks.
- Performing regular scenario planning, FMEA analyses, pre-mortems, and tabletop exercises to gain additional insights. And
- Conducting value-stream analyses to uncover potential threats and opportunities and improve core functions.
ADEPT 301 – Highly Regulated or Very Large Nonprofits
Some nonprofits, which are even larger or which function in highly regulated industries, need more than the 101 or 201 approaches. These organizations would want to go beyond and employ advanced risk management techniques. These might include the following:
- Heat maps
- Risk norms for scoring risks
- Software solutions to increase the sophistication of risk analysis, tracking, and reporting.
The Next Step?
You’re close to the summit. You have become ADEPT at nonprofit risk management. Is the journey over? No – as explained in our next post, the journey keeps on going.
TOLLGATE OUT OF “ADEPT” STAGE: A successful nonprofit leader graduates out of the “adept” stage when she has formalized her nonprofit’s risk management process and regularized that risk process within her organization as a risk cycle.
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