A Collection of Tips and Suggestions to Enhance Your Risk Management
Is your year-end fast approaching? Are you looking ahead to the next fiscal year and thinking it is time to address risk management?
This week’s post is a collection of our top tips and resources to help you to tackle risk management.
Have you ever thought there was something important you really should get done, but getting started just seemed too overwhelming? When it comes time to think about risk management, this is the case for many associations and not-for-profits. This post was designed to help you get started and explain why effective risk management does not have to be an overwhelming endeavour.
For the past nine years, North Carolina Poole College of Management (Enterprise Risk Management Initiative) in partnership with the American Institute of CPA’s has published an annual report on the state of risk oversight. In 2018, there were 474 respondents including 103 not-for-profit organizations. Only 22% of respondents described their risk management as mature or robust! If you are in early stages of addressing risk management, you are not alone. Read the post here.
Dr. David Hillson, the Risk Doctor, has identified six questions to help you get started with risk management or to get more value from your current risk management efforts. In this blog post, we outlined these questions and provided examples of how they can be used in your organization.
Risk is really about uncertainty – uncertainty about a choice to be made, where there are multiple possible outcomes, or even uncertainty about multiple events that could all affect your plan, and ultimately, your ability to reach your goals.
Uncertainty can cause “analysis paralysis” – the state of over-thinking a decision to the extent that a choice never gets made. But leaders need to take action.
How do you overcome analysis paralysis and choose your path wisely? The first step is identifying your risks and uncertainties. The next step is figuring out what type or level of uncertainty you are dealing with. In this blog post, we described how Hugh Courtney, Professor of International Business and Strategy at Northeastern University, identified four distinct levels of uncertainty.