Review
&looks at many aspects of the subject in great detail&. The approach is a practical one& --
Oxfam's Development Resources Review, April 2004“…looks at many aspects of the subject in great detail…. The approach is a practical one…” (
Oxfam’s Development Resources Review, April 2004)
From the Inside Flap
Too often, nonprofit managers unwittingly adopt an unrealistic attitude toward risk management. They acknowledge the risks inherent in the nonprofit business–from serving a vulnerable population while using volunteers to deliver services, to relying on the kindness of strangers for donations to meet payroll and other expenses. Yet their risk management strategy seeks only to avoid or eliminate risk. Not only does this stance fail to account for the fact that many risks in nonprofit work are plainly unavoidable, but it further fails to recognize the inherently positive component of risk-taking. An organization that designs its risk management activities solely around the goal of minimizing or avoiding risk will miss out on opportunities to strengthen the organization’s assets, offer more meaningful services to individuals or a wider community, and attract a steadily growing constituency of donors, supporters, and volunteers. Four leaders from the Nonprofit Risk Management Center explain how to minimize the negative and maximize the positive consequences of risk-taking in Managing Risk in Nonprofit Organizations: A Comprehensive Guide.
The team of expert authors analyzes every facet of the risk management process, including identifying and prioritizing risk, selecting and implementing risk management techniques, and monitoring risk management for the long term. They begin by highlighting five reasons why risk management should be a top priority for all nonprofit personnel, from the governing board to unpaid volunteers:
- Asset stewardship
- Achieving public accountability
- Attracting stakeholders
- Freeing up resources for mission
- Staying true to mission
The authors systematically explain how risk management can be leveraged in a time-sensitive manner in each of these and other areas, recognizing the myriad pressures and competing concerns that every nonprofit staff faces. Diagrams of the risk management cycle and "dimensions of risk" graphics further illustrate process implementation.
Risk management should be viewed not as a bit of unpleasant housekeeping, but rather as an opportunity to achieve your organization’s full potential. With this practical guide, nonprofit managers will learn how to reap the considerable benefits that proper risk management has to offer.
