It is well known that the first month of every new year is a time when many annual decisions are made — including those related to risk management in non-profit organizations. These decisions aim to improve operations and increase the likelihood of the organization's success in advancing its mission. Here, we suggest three highly important steps from a risk management perspective. Each decision includes several actions, which can be tailored to different types of risks — whether physical, legal, or others.
What Are the Three Risk Management Decisions for Non-Profit Organizations? 1. Turn the Vendor into a Partner
Usually, the insurance agent or broker is the preferred business partner. Viewing them as mere vendors limits their potential value. Making them true partners leads to:
Helping staff and board assess risks and exposure levels
Alerting staff to adopt safety and risk management measures
Advising on the need for additional coverage lines
Assisting in understanding the insurance program’s details
Steps to take:
Review the agent's website to understand their client base, services, and expertise
Invite the agent for a discussion to learn how they can support you
2. Add Risk Reports to Board Agendas
In the UK, registered charity boards are required to regularly review major risks. Non-profit leaders should:
Assign risk management responsibilities to board roles
Recognize “major risks” — high-likelihood risks with serious consequences
Include “major risk review” or “risk assessment” on board agendas at least annually
Include a recurring risk report in executive updates
Have a risk consultant schedule risk presentations to the board
Board responsibilities include:
Ensuring risk identification, evaluation, and mitigation
Covering all risk areas (financial, operational, reputational, etc.)
Reviewing key findings and managing risks accordingly
Embedding risk management into core decision-making
3. Establish Clear Risk Policies
Ask staff to recommend changes to outdated or ineffective policies. Key steps include:
Reviewing current policies to identify gaps or redundancies
Removing unnecessary policies
Engaging staff volunteers to revise outdated policies
Creating a timeline to implement updates
Sharing drafts with diverse stakeholders for input
Holding staff accountable to the new policies
The British Academy for Training and Development offers various programs and courses in public relations management, strategic planning, and risk management systems, designed to raise professional performance to meet international standards.