Article Archives >> Risk and Reward >> July/August 2002
Preview of Article:
Strategic Risk Management: A Discipline for Uncertain Times
None
of us knows exactly what tomorrow will bring. Most managers of
nonprofit organizations have good reasons to expect that tomorrow
will be much like today. However, many events that we cannot
now fully foresee may, occasionally and with little warning,
make a nonprofit's tomorrow much different - much worse or much
better - than it is today.
Thus, unpredictable events may bring near disaster or great good fortune to a nonprofit. Disaster and great fortune may happen unexpectedly, and suddenly. These events all arise from risk - the possibility that the future may be surprisingly different from what we expect. These surprises may bring good or bad results, generating threats of losses or presenting opportunities for gains. For a nonprofit organization to fulfill its community-serving mission, its leadership must proactively manage risk effectively by countering or withstanding the threats of loss and recognizing and capitalizing on the opportunities for gain that are inherent in a less than fully predictable, and therefore risky, world.
Article Archives >> Risk and Reward >> July/August 2002
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