How to Develop a Risk Aware Culture in Your Nonprofit

Encourage your nonprofit to consider risk in the workplace.

When it comes to your nonprofit, the words “risk management” may make you groan and think of basic common sense safety that everyone knows. It’s no surprise that many nonprofits are not paying close enough attention to their risks, however, this crucial albeit dull topic is just as important as any other task your organization undertakes. Good risk management helps to keep your nonprofit in good financial order and ensures you have enough assets to carry out its mission. A great way to make risk management more engaging and effective is to incorporate risk awareness in your nonprofit’s culture.

At a basic level, risk culture is the attitude everyone in the organization feels about risk and their perception of how safety should be managed. It sets the tone of the organization, influencing the risk-consciousness of its people as they conduct their daily activities and pursue their business objectives. Essentially, the more safety practices you knit into the fabric of your organization, the more protection it’s able to provide.

For a risk-aware culture to develop, all people within the organization should look out for one another. This helps to strengthen the group mentality to be about safety and risk aversion. Having the courage to speak out about something unsafe can be difficult and uncomfortable – but it matters. The support for giving employees and volunteers the safety to speak out when they believe they have witnessed unsafe practices must come from top management. Top leadership has to make sure that everyone knows the organization supports a culture of transparency, and values input from employees and volunteers.

Having a strong risk-aware culture can protect your nonprofit from unnecessary harm and financial strain. To protect the livelihood of your organization and employees, ensure you have the right protection. Contact the experts at Colorado Nonprofit Insurance Agency, part of HUB International in Denver, Colorado at 303-894-0298. Make sure that your nonprofit is properly covered. We will work with you to ensure you are getting the most out of your coverage.