(from Nonprofit Quarterly) Michele Braun, director of the Institute for Managing Risk at the Manhattanville School of Business, argues that if nonprofits do not take any risks at all, they cannot grow, adapt or respond to the needs of their clients. The challenge, instead, is how to be intentional about which risks to take on and how to avoid ones that could be detrimental to the organization’s survival.
Nonprofit leaders should ask a few key questions:
... A risk management policy can include more than simply how not to be devastated by a negative risk. It can also include ways to be aware of and take advantage of risks that will help us grow. By managing the process of taking a strategic risk, and with some forethought, your nonprofit can have the courage to do something new while minimizing the potential downside.
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