Warren Buffett famously said that “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” Nowhere is that more important than with nonprofits. You have limited resources and no safety net. A single slip-up can spell disaster. Effective risk management is not just a good idea. It is essential.
Enhance and protect your nonprofit’s reputation
Simply put, you need risk management for your nonprofit. Insurance is important, but it’s not enough. As one trusted source puts it, “some may naively conclude that more effective risk oversight is a corporate issue that isn’t relevant to not-for-profits. That perspective is dangerously wrong.” Increasing Risk Awareness for Mission Critical Objectives of Not-for-Profit Organizations, AICPA Not-for-Profit Brief (March 22, 2011). (For more info, see sidebar.) Most nonprofit leaders diligently and selflessly serve their organizations’ missions. But even the best nonprofits face numerous challenges: funding pressures, staffing stresses, uncertainties raised by serving needy and risky populations, encroachment from for-profit competitors, and volunteer management issues. If a nonprofit has not at least performed a risk inventory as a first step toward a risk management program, it cannot competently chart a path forward. Any nonprofit “strategic plan” adopted without such thought work is little more than a strategic hope.
Gain clarity, peace of mind, and predictability
With Risk Alternatives, you gain confidence that comes from awareness and planning. You understand the threats and opportunities you face. You know how to prepare for those risks, and you know how to build resilience for the risks you can’t predict.
Our solutions can increase value in at least five ways:
- Energize team members to identify threats and opportunities
- Capture cost savings by simplifying processes and eliminating wasteful practices
- Document procedures so that your institutional knowledge does not depend on the memory of key employees
- Reduce the chance of catastrophic losses, which can reduce insurance costs
- Spot opportunities that grow into new initiatives.