Strategies
- Critical process, stakeholders need to know
- Builds trust and encourages buy-in through sharing decision-making
- Reduces misperceptions, misunderstandings
- Improves the technical understanding or “science” or what needs to be done
Consultation with Stakeholders
- Will not always reduce conflict or make decisions easier
- Facts may not be enough that a decision can be made (personal perception of risk)
- Stakeholders resent imposed risk and decisions made without their input
- People have right to be involved in decisions that affect them
Without Communication: The Downside
- Loss of management credibility
- Protracted, unnecessary, costly debate and conflict with stakeholders leading to difficult approval processes
- Diversion of management attention from important issues
- Non-support or critical management, employees, volunteers
- Stress due to high levels of anxiety and fear of unknown
Effective Risk Management Plans
- Reflect a nonprofit’s wide range of stakeholder perspectives
- Express the belief in and support of risk management
- State that all personnel are vital in protecting the nonprofit’s mission, reputation and assets
- Incorporate existing risk management policies
- Reflect the goals for the risk management effort
- Focus on priority risks and consider secondary risks
Transfer to Insurance
- Some exposures may be uninsurable
- Insurance policies have coverage
Implementation
- Assign responsibility and accountability for the implementation of each selected technique
- Allocate required resources
- Document the implementation in writing
- Establish milestone dates and other evaluation criteria for measuring performance
Implementation Strategies
- Define framework – Risk Management Plan
- Risk management policy – state in writing
- Risk champion
- Task force
- Guidelines and training
