Risk management is essential for the growth and sustainability of nonprofit organizations. However, risk management shall not be a burden for nonprofit leaders and charitable sector managers. The ViStA Risk Management Framework is a scientific risk management tool developed specifically for nonprofits and charities.
Risk should be the servant of the objectives of a nonprofit organization. An organization exists to execute its objective. Risk management exists to help increase the probability that the objective is met. There is no other reason for risk management.
Too often, it seems that organizations exist to serve the risk management function. That is backward and inefficient thinking. If a risk management function or protocol exists that does not serve the objectives of the organization, then that risk operation should be eliminated or re-engineered until it does.
You would never spend time, energy, or resources on wasteful operational activities that did not help the organization; why should allow such wasteful activities exist in your risk management?
This is not saying to eliminate risk management; risk management is critical to the effective operation of any organization. Just make sure risk management is serving the objectives.
The objective of the ViStA Risk Management Framework is to provide a risk management solution for nonprofits and charities. Most of the nonprofit managers and charitable sector leaders have to deal with complex operational and managerial issues. They generally have no time and human resources for additional tasks. Since risk management is considered an extra task – although it isn’t – nonprofit managers have limited interest in risk management. However, risk management can be a good opportunity for sustainable growth.
Effective but simple risk management tools such as ViStA Risk Management Framework can play a key role in the success of nonprofits and charities. The need for practical risk management solutions became more essential after the COVID-19 pandemic.
Omer and Rick are authors of the book Risk Management for Non-Profit Organizations, published by Business Expert Press