February 7, 2013

Risk and the Board: What Could Go Wrong?

By Melanie Lockwood Herman

During my career I’ve reported to and served on some terrific nonprofit boards. And something I’ve learned first-hand is that no two nonprofit boards are exactly alike. From size, to focus to meeting format, nonprofit boards are perhaps best compared to snowflakes: each is different in some respects from the others.

The risks that arise from nonprofit governance are varied as well. During Risk Assessments with our nonprofit clients we often discover discrepancies between written governance policies and actual board practice. We also uncover less than supportive relationships between board members and nonprofit CEOs. On occasion, we work with organizations facing a crisis caused by ineffective governance. The good news about “governance risk” is that just about anything can be fixed with time and attention.

In the brand-new issue of Risk Management Essentials, we delve into three critical risk issues facing nonprofit boards:

• Board-CEO relationships;
• Succession planning; and
• CEO Compensation

If these risk issues keep you—or any members of your board—awake at night, I hope you’ll check out the brand new issue of Risk Management Essentials. Each article offers an analysis of the risks and practical tips that will help you put worry to bed and sleep better.

If your nonprofit’s governance practices need more intensive therapy, contact me to learn about our risk consulting services. We work one-on-one with high-performing nonprofits to identify and address critical risks, including those that arise from governance activity.

Reference Checking Demystified

During yesterdays’s “Wednesday Webinar” I spoke about the importance of reference checking, the challenges and risks of giving and getting references, and the 10 key steps to sound reference checking. Missed the live program? The recording is available and can be ordered here: http://www.nonprofitrisk.org/training/webinars/ webinars_2013.asp. When you order ANY completed webinar you receive instant access to the recording and handouts.

Melanie Lockwood Herman is Executive Director of the Nonprofit Risk Management Center. She welcomes your ideas about any risk management topic, suggestions for best-in-class risk management, and questions about the Center’s resources at Melanie@nonprofitrisk.org or (202) 785-3891. The Center provides risk management tools and resources at www.nonprofitrisk.org and offers consulting assistance to organizations unwilling to leave their missions to chance.

Join, Learn and Save

Consider becoming an Affiliate Member of the Nonprofit Risk Management Center if you want to receive dedicated risk management help and access to valuable resources. Affiliate Members enjoy free, unlimited access to the recorded 2013 webinars, 90+ recorded webinars, free RISK HELP™ from Center experts throughout the year, and savings on valuable resources including books, online programs, and registration for our annual RISK SUMMIT. Affiliate Membership is only $75/month for nonprofit organizations and $100/month for for-profit firms. Learn more about program benefits or enroll today.