Presentation Materials: 

C5_CapacityManageNonprofitRisk_presentation.pdf

When anything goes awry, nonprofit leaders may find that their energy and resources can quickly become drained in the process of responding. Understanding the dimensions and elements of risk in all areas of organizational operations is the first step in designing a comprehensive risk management program. This workshop will provide a framework for identifying risk factors in nonprofits by not only describing generic risks, but also presenting approaches to defining those risks that may be unique to individual organizations. The presenters will draw from a variety of risk assessment tools that can be used to create a system for assessing and planning for risk management.

Workshop objectives/takeaways:

• improved understanding of the broad definition of risk across organizational functions;


• greater capacity to analyze specific organizational needs in order to anticipate and mitigate risk; and


• awareness of best practices for managing nonprofit risk.

Presenters: Markham F. Rollins III, president and CEO, The Rollins Agency; and Nancy Woodruff Ment, president and CEO, Andrus Children’s Center

Workshop Synopsis:

During the transition into the 21st century, key challenges for nonprofits shifted from program development and service provision to managing risk across multiple dimensions. Nonprofits are increasingly viewed as business enterprises, with all the functions and responsibilities associated with running complex operations. While the requirements for nonprofit risk management encompass many of the same features as commercial entities, there are numerous differences that may not be explicitly understood by nonprofit leaders and managers. This workshop will draw from a wide variety of tools and resources to provide a framework for developing an organizational risk profile. This profile will, then, serve as the basis for building a comprehensive risk management plan.

The best way to manage risk is to be prepared for it; because, it will come. It is possible to obviate many untoward events and processes with strong prevention programs. Risk prevention programs can include activities ranging from mending torn carpet to maintaining vehicles to conducting criminal background checks of potential employees. Other protections can be purchased through a comprehensive program of insurance coverage. Additional risks can be addressed through well-defined and administered policies. Risk cannot, however, be eliminated. The risks that have the potential to erode resources, energy, and reputations of nonprofits often come from unanticipated sources in unexpected areas. The least effective time to manage a crisis is during the crisis itself.

Preparing for risk demands time and attention from organizational leaders and managers. Management must conduct a careful assessment of functional areas that present risk and then assign responsibility for deeper identification of risk issues, followed by collaborative planning for proactive measures. Each nonprofit’s mission, culture, and available resources will shape its approach to risk management. This workshop will offer a model for identifying generic risks, as well as idiosyncratic risks associated with organizational structure, scope and programs. Emphasis will be placed on no or low cost tools that outline approaches to assessing risk

There is, however, no way to avoid spending valuable nonprofit resources on risk management. Successful strategies for risk management have become an increasingly costly element in business operations. Given the rigorous compliance mandates, these expenses must be anticipated and incorporated into the nonprofit’s annual overhead budget. The workshop will address basic budgeting for essential risk management activities including audits, background checks, compliance programs, legal retainers, and insurance coverage.