For as much as nonprofit leaders have a healthy respect for risk and a desire to implement leading-edge enterprise risk management (ERM) programs, many still struggle with translating the theory they find in literature into a practical and effective program. There is no single, correct way to implement ERM, which leaves managers to their own devices in interpreting ERM concepts as they attempt to adopt risk management protocols.
This often leads to suboptimal efforts that fall short of achieving their objectives — or worse, to abandonment of ERM initiatives altogether. However, effective implementation of ERM can indeed be achieved, and the common pitfalls that organizations face when designing an ERM program from scratch can be overcome.
Success comes from utilizing a comprehensive, structured methodology, informed by the experience of others, to identify, evaluate, report and mitigate key risks to your organization. Here are best-practices strategies — from organizations that have recently successfully deployed ERM or those that are currently in the midst of successful implementation — to overcome the challenges you will face and translate theory into meaningful, practical action….
