Nonprofits and startups often feel short-staffed. As a result, they fear being blindsided by issues and events. By implementing risk management, however, smaller organizations can multiply team effectiveness by putting a premium on inquiry and awareness. In fact, an effective risk management program can foster perspectives otherwise found only in larger, more established organizations:
- Chief Compliance Officer. By questioning whether the organization is complying with internal rules and external laws and regulations, risk management can lead team members to think like a CCO.
- Assistant HR Manager. Risk management leads the organization to identify and track metrics to determine whether relations with and among employees create any threats or potential opportunities.
- Chief Strategy Officer. Risk management forces ongoing comparison of strategy to performance and challenges a team to keep plans realistic in light of emerging issues.
- Controller. Risk management pushes an organization to keep abreast of whether financial controls are functioning effectively.
- Assistant Marketing Manager. Risk management urges an organization to identify and keep metrics concerning outreach to potential customers, as well as information relating to threats to the organization’s reputation and possible opportunities for enhancing brand image.
- Assistant Sales Manager. Similarly, risk management presses an organization to identify and track metrics relating to sales and address choke points in those processes.
- Chief Information Officer/Chief Technology Officer. By emphasizing communication, and by tracking threats to IT infrastructure and opportunities for improvements, risk management raises questions that in larger organizations might only be raised by a chief technology officer or chief information officer.
In short, risk management can create a larger diversity of “virtual” staff perspectives by raising issues that might otherwise go unnoticed and unmentioned. This can act as a force-multiplier in a small organization. It can also give a leader substantial peace of mind.
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