A source for tools, advice and training to control risks ... so you can focus on your nonprofit's mission

2009 Webinar Series: What’s Up Next
The Center’s next webinar will be held October 7 at 2 p.m. (Eastern) and will address the topic of The Volunteer Protection Act. More than 10 years have lapsed since the passage of the Volunteer Protection Act, the federal law that was intended to remove the fear of liability from the hearts of nonprofit volunteers. This webinar will explore the landscape of volunteering since the passage of this law. During the webinar we’ll take a look at cases citing the Volunteer Protection Act and try to discern a pattern in the ways that courts have applied the law to insulate volunteers from liability. Explore the lessons from this legislation and learn how to leverage those lessons into effective volunteer management practices at your nonprofit. To register, click here.

September 9, 2009

Risk and the Art of the Motorcycle

By Melanie Lockwood Herman

On Sunday of this week I was blessed to have the opportunity to reflect on two favorite subjects: motorcycles and risk management. Sunday, September 6th was the birthday of Robert Pirsig, author of the book Zen and the Art of Motorcycle Maintenance. On this day I was among the riders at the Pewter Run, a time-based rally for vintage motorcycles held in Hillsborough Center, New Hampshire. In July of 1968, Pirsig began a cross-country motorcycle trip with his son and two friends. Upon returning he began work on a book about the trip that took several years to complete. Pirsig’s book, published in 1974 eventually sold more than 5 million copies.

As I followed my fellow riders on a 40-mile route, I was reminded time and time again about the essential lessons of risk management. These lessons include:

1. Check your vital signs before setting off. At the beginning of the Pewter Run the group of high-spirited (and optimistic) vintage bike enthusiasts donned protective equipment and did whatever was necessary to get their bikes started. For a few lucky riders this involved a single “kick,” while others had to coast down a short hill and pop the clutch with the bike in gear. As I sat on my borrowed 1955 Norton Dominator, a bystander came up to me to let me know that my helmet strap wasn’t fastened. I was grateful for the reminder. With so many things to think about (“How will I ever make it around the hairpin turn at the end of the route?”), it’s easy to forget key details. The same is true in the world of nonprofit risk management. When an organization is preparing to launch a new service or expand to a new territory, it’s far too easy to forget the basics, such as: have we updated our insurance program to make certain we’re “covered” for losses stemming from the new activity? Did we complete the orientation and training required to increase the program’s chances of success?

2. Watch for common and uncommon hazards throughout your journey. As I headed down the first hill in the course I began scanning for the typical roadway hazards that bring motorcyclists into contact with the cruel pavement: sand, water, pot holes, oil on the road, etc. A sign up ahead announcing “Moose Crossing” provided a wonderful reminder of a “black swan” event. While the chance of colliding with a moose while traveling on a country road in New Hampshire is rather slim, the consequences of such an event would be catastrophic, to say the least. Safe motorcycling requires that a rider scan without interruption—the roadway below, the shoulder, the woods, and of course, the roadway up ahead. Leaders of nonprofits must do the same with respect to the risks facing their organizations. Focusing solely on the mundane is a mistake, as is thinking only about the most catastrophic downside risks. We need to give time and attention to both.

3. Plan ahead. Before departing on the Pewter Run each rider received a laminated map of the “route.” Thinking that there was no way I’d be able to read a map and keep the Norton upright in unfamiliar territory, I tucked the map into my jacket and resolved to follow Rider #23 riding an early-vintage BMV. As my luck would have it, Rider #23 decided to travel at a speed that was a bit above the recommended pace of 24 MPH, and he quickly disappeared out of view. I immediately chastised myself for not spending the time to strap the map to my left arm, or coming up with another “Plan B.” Planning ahead is in many respects the essence of risk management. Nonprofit leaders will never know exactly what the future holds. But effective leadership—and a good night’s sleep—are within reach when you take the time to think about the possible forks in the road and how you will decide which way to go and how you will do your best to ensure your nonprofit’s safe arrival.

4. Reach out for help. I’ve been advising nonprofit leaders to “reach out for help” throughout my tenure at the Nonprofit Risk Management Center. The value of this advice was illustrated when the rally host presented the “hard luck award.” One of the riders was unsuccessful getting his vintage bike started. A bad battery was quickly determined to be the cause. In many environments the rider would have been out of luck. In this case, the determined rider decided to reach out for help. He began asking the onlookers and race organizers if they had any ideas. One of the onlookers had a “spare” battery that fit the vintage bike! The rider had the bike running again in short order, completed the course successfully, and proudly went home with the “hard luck” trophy in hand. Remember to reach out to others—individuals inside and outside your nonprofit—for help, and do so before the going gets rough.

2009 Summit

At this year’s 2009 Risk Management and Finance Summit for Nonprofits there will be plenty of opportunities to plan ahead, reach out for help and take your nonprofit to the next checkpoint in its journey to sound risk management. The intensive program includes “Curbside Consulting” with experts who will generously donate their time for one-on-one consultations with attendees. Each registrant will receive a CD-ROM containing handouts for all conference sessions, as well as the opportunity to download handouts in advance of the Summit. The exhibit area for the Summit will be filled with experts on topics ranging from managing your insurance program to background checking. The keynote sessions promise to inspire reflection about your appetite for risk-taking. The Bookstore and online tools kiosk will give attendees an opportunity to peruse (and purchase) the Center’s brand-new books and online tools. We are looking forward to showing these new resources to attendees and introducing the authors and developers.

Our meeting space at the AT&T Executive Education and Conference Center in Austin, TX will accommodate approximately 20 additional registrants. If you have been thinking about registering for this year’s conference but haven’t done so, now is the time to register. Conference details can be found at: http://nonprofitrisk.org/training/conference/conference.shtml. If you would like to register by phone, call (202) 785-3891.