What is the best risk (or risk management) tool that nonprofit organizations and charities can use? Nonprofit leaders need practical risk management tools to deal with uncertainty and risks. Risk management tools are also useful to benefit from the opportunities.
Many researchers and practitioners have been looking for the magical answer for decades. Here is what we think.
Empathy is simply the best risk tool.
Risk is almost always caused by people, and the solution to risk is again almost always found through the actions of people.
This is particularly true for nonprofit organizations and charities.
Empathy is not sympathy.
Empathy is not feeling sorry for people – although that may be a by-product of empathy.
Empathy is doing your level best to understand why people are making the decisions they are making;
understanding to the best of one’s ability why someone is feeling the way that they are;
examining the context of a situation through the eyes and experiences of another.
Great risk managers are not technicians.
Great risk managers and nonprofit leaders are empathy seekers and empathy implementers.
With empathy, risk management is easy. With empathy, risk management is a game-changer for nonprofit governance.
Risk management is part of nonprofit leadership. It includes both positive and negative risk management. Proper risk management tools can make a big difference for nonprofit organizations and charities.
Omer and Rick are authors of the book Risk Management for Non-Profit Organizations, published by Business Expert Press