Gene Takagi, who previously appeared on our Nonprofit Resilience and Growth podcast, recently published a list of 12 reasons why a nonprofit board member should resign from a nonprofit board. Gene’s points are all excellent, but I would add a thirteenth reason:
13. The nonprofit does not have a risk management process in place, meaning that the board cannot perform its limited but critical role in risk management and has no assurance that staff employs a methodology for identifying and addressing risks as a normal part of business operations.
If a nonprofit doesn’t have risk management, a board member is putting her reputation on the line without adequate assurance that the nonprofit is following best practices. If that’s so, the board member should heed the exit signs.