A lot has been talked about Risk Management and effective ERM Strategies. While Companies worldwide, whether Public or Private, are customizing ERM processes to suit their requirements and achieve Business goals, there is an obvious void between achieving Project goals by aligning Risks in Non-profit Organizations. Risk Management is a rapidly developing discipline with varied views. Moreover, there is no “one-size-fits-all” approach for ERM.
Why do we need to have robust Risk Management Strategies for Non-profit Organizations ?
Non-profit Organizations are continually exposed to ambiguous internal as well as external Risks of challenging Regulatory environments, changing Technology landscapes and increased complexity in foreign operations. These trends have been a catalyst for developing strategies to improve the oversight and Governance of these Organizations. Enterprise Risk Management (ERM) definitely provides an effective framework to aid in evaluating, prioritizing and mitigating Risks thereby giving the ability to take effective decisions.
Though Risk management may not sound like a vital process of a non-profit Organization’s functions, it is as critical as any other Project it undertakes. Efficient Risk management enables a non-profit firm to have enough assets to carry out it’s mission. Additionally, when aligned with Compliance, it ensures that the nonprofit’s actions does not harm the Client population , employees and volunteers. Non-profit organizations without ERM practices are vulnerable to events that could impose significant staggering costs.
How do we take ERM for non-profits to a new level ?
Like any another successful Company, every nonprofit Organization needs to create a risk management plan and review it annually. Not only this, keeping track of Process changes, Events and acquisition of tangible assets, can go a long way in ensuring that there are no Risk and Compliance threats. While large Non-profit organizations often have dedicated staff members assigned to the risk management task, for those with limited funding, the responsibility for creating a risk management plan falls more heavily on the Board of Directors and senior management.
Conventional Risk Management Strategies have only a holistic Operational picture which focus on Transfering, Alleviating, Avoiding and Responding to Risk. It has little or no scope for Company Executives to swiftly adapt to external Market fluctuations. Agility enhances the cohesiveness of a Company’s entire value chain as an Integrated Process in addition to improving performance of Individual Processes. Our mission at Confident Governance is to design Innovative Risk Management Strategies for Companies across all verticals and magnitudes. That’s the reason we want to “Democratize Governance Worldwide”. We at Confident Governance help Companies achieve and maintain highest Ethical Governance and Risk Management standards across all spectrums of Operations.
If you are a non-profit and you want to leverage your Processes to achieve your goals, reach out to us and give your feedback.
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