What is risk management? Where can I learn more about it?
According to the Alliance for Nonprofit Management, risk management is defined as follows:
[...] a discipline for dealing with the possibility that some future event will cause harm. It provides strategies, techniques, and an approach to recognizing and confronting any threat faced by an organization in fulfilling its mission.
For nonprofits, risk management may refer to assessing finances or insurance coverage, but it also may refer to screening volunteers, training employees and reducing liability, to name a few.
Developing a risk management plan is key to ensuring that your organization is not caught off guard by unforeseen events or oversights. Risk management may involve any of the following actions:
- purchasing Directors' and Officers' insurance for your board members
- implementing a volunteer screening process
- developing a disaster plan
See also our related Knowledge Base articles:
- What's the difference between contingency and scenario planning? Where can I learn more about these topics?
- Where can I find information on a board's legal duties?
- Where can I learn more about recruiting and managing volunteers for my nonprofit?
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Ask usExplore resources curated by our staff for this topic:
Staff-recommended websites
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Stanford Social Innovation Review
A Call for Nonprofit Risk Management
Nonprofits have a duty to apply risk management principles—a look at when organizations should adopt a risk management program and how they can begin. July 2016. The author, Ted Bilich, also has a series of free downloadable materials, including a step-by-step guide to risk management, at https://riskalts.com/free-nonprofit-risk-management-materials/. (Registration required to download.)
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Venable LLP
Nonprofit Insurance Coverage: You Need More Than a Directors and Officers Policy
Discusses what kinds of insurance a nonprofit needs and who or what it should cover. Links to a longer article and webinar. March 2014.
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Free Management Library
Risk Management
Risk management often focuses on matters of insurance. However, there are several other major considerations when assessing areas of risk in your business. Read the following sections in this overall topic, too.
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Staff pick
Public Entity Risk Institute
The Public Entity Risk Institute (PERI) is a dynamic, forward-thinking organization that serves as a resource to enhance the practice of risk management throughout organizations and communities. Serving public entities, small businesses, and nonprofit organizations, PERI provides relevant and high quality enterprise risk management information, training, data, and data analysis.
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Alliance of Nonprofits for Insurance,Risk Retention Group (ANI)
Nonprofits Insurance Alliance Group provides liability insurance coverages, as well as helpful risk management tools, all tailored for 501(c)(3) nonprofits.
Staff-recommended books
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Managing Your Nonprofit for Resilience
Find: Amazon | Free eBook
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Managing Risk in Nonprofit Organizations
Find: Amazon | Free eBook
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The Nonprofit Playbook
Find: Amazon | Free eBook
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The Nonprofit Risk Book: Finding and Managing Risk in Nonprofits and NGOs
Find: Amazon | Free eBook