Thursday, September 6, 2012

How To Minimize Risk From Employees

In the nonprofit world, risk usually comes from two sources: Employees or process.

According to Melanie Lockwood Herman in “Ready…Or Not: A Risk Management Guide for Nonprofit Executives,” process-based risks are much easier to handle. If there is something in the organization that isn't working, all you need to do is determine the best possible steps to address the issue.

Dealing with risk from employees is a little trickier.

As opposed to process risks, Herman said that people risks are best addressed through prevention, detection, and correction. This is done through these four steps:
  • Creating policies and procedures that clarify job responsibilities and standards of permitted and prohibited conduct.
  • Communicating the nonprofit’s policies through written policy materials, online resources, and in-person briefings. You should also consider making policies available in multiple formats.
  • Designing employee and volunteer training to address key aspects of the job and recommended approaches for coping with adversity and undesirable circumstances.
  • Holding all personnel accountable for the organization’s key risk management policies.

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