Mitigate Exposures With an Enterprise Risk Management Strategy
By Scott Konrad for the American Society of Association Executives
Taking ownership of an association’s risk profile and proactively managing potentially crippling threats to the entity is sound governance. Identifying exposures and mitigating those risks is part of the enterprise risk management process. Here’s how to get started.
Associations cope with myriad risks every day. From operational exposures like slips, trips, and falls, to employment practices transgressions and data breaches, there’s a lot to consider and mitigate.
While most hazard and occupational risks are insurable, some have no obvious coverage. This includes strategic exposures, such as succession planning, reputational damage, or revocation of tax-exempt status, as well as financial risks like investment and credit risk and macroeconomic shifts tied to geopolitical conditions.
Adopting an enterprise risk management (ERM) strategy can not only help associations holistically evaluate their risk landscapes from end to end, but it can also identify and triage key threats and develop practical remedial strategies to eliminate or reduce such exposures.
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