Warren Buffet is supposed to have said that
“only when the tide goes out do you discover
who has been swimming naked.”
The pandemic has shown
which non-profit organizations were swimming naked
in terms of their risk management.
Organizations that skimped on risk management
– or even worse –
totally ignored it,
were the ones
that were hardest hit
with the onset of the pandemic.
The pandemic created (and is still very much creating)
a context of uncertainty.
Risk management is developing and implementing plans
for better managing uncertainty.
Organizations that had well-constructed risk management strategies
were best positioned to deal with the pandemic.
Organizations without risk management
were left to deal with the chaos as best as they could.
When is the Right Time for Risk Management?
There is an old saying that the best time to plant a tree is 40 years ago;
the second-best time is to plant one today.
You cannot go back to 2018 (or earlier) and start risk planning.
However, you can start risk management planning starting today.
COVID is not the last event that organizations will face that will create uncertainty.
Why pretend that it is.
Nonprofit organizations need risk management today
and they will need risk management in the future too.