Following on from the third blog in my series of the 10 things you need to know about not-for-profit governance blogs – about Financial Sustainability and Obligations – this week we are going to explore the fourth area: Managing Risk.
I have to admit I am a bit of Risk Management nerd, so it just seems natural to me that we should do whatever we reasonably can to prevent things from going wrong before something happens.
But I do find that some people still feel that Risk Management practices and processes are an extra burden, on top of their already-busy schedules.
In cases like these, what I try to impress upon people is that, apart from any legal or regulatory requirements, effective Risk Management is actually key to delivering quality outcomes in whatever it is you do, and it will better position your organisation to support those you serve in the most appropriate way.
When we think about Risk Management, often people’s first thought goes to health, safety, and wellbeing matters. While this is undoubtedly an important element, Risk Management encompasses so much more than just that. Risk management also includes controlling any strategic risks, dealing with business risks, addressing risks to our resources (including our finances), and considering things such as reputational risk, cybersecurity risk, and more.
Regardless of the size of your organisation or the sector in which you operate, taking a strategic approach to managing risk is critical. You need to be proactive and ensure your organisation has a good risk management framework in place, that helps to safeguard its people and its assets and enhances its resilience in the face of whatever challenges may come along – for example, who had ‘global pandemic’ on their Risk Register before the end of 2019…?…not many of us I’m willing to bet!
If we consider the obvious and significant area of safeguarding people’s health, safety, and wellbeing, this involves such things as establishing and implementing policies and procedures designed to protect your staff, your volunteers, those you serve, and your stakeholders from harm (and ‘harm’ can take many forms).
It includes creating a safe working environment in the first place, conducting regular checks to identify anything that could potentially cause harm (these things being the ‘hazards’), undertaking risk assessments to determine which hazards and risks are likely to be the most critical to address, then coming up with the best solutions to address those and of course following through with the recommended solutions.
There is a whole legislative and regulatory framework that wraps around the health, safety and wellbeing risks, and each state and territory in Australia has its own work cover authority which has responsibility to regulate and ensure compliance with the relevant laws and regulations.
The same process – identify, assess, mitigate – which we apply to health, safety, and wellbeing risks, needs to be applied to all those other types of risks I mentioned too. And remember that Risk Management is not a one-time task but an ongoing process.
By embedding ongoing Risk Management practices into your organisation’s governance framework, you will greatly strengthen its ability to navigate challenges, seize opportunities, and ensure its long-term sustainability.
Stay tuned for the next installment in my 10 things blog series, where I’ll explore another essential aspect of not-for-profit governance – People and Culture.
If you’d like to catch up on the 10 things webinar, where I discuss these 10 essential elements of not-for-profit governance in more detail, you can check that out HERE – the passcode is 7A#AQMg*
And if you think I can help you or your not-for-profit with YOUR good governance, do have a look at the supports and services I offer organisations HERE – and if you would like to book a discovery call with me, to discuss your needs, you can do that HERE.
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