This is Part 2 of a series. Read the first article in the series.
Introduction
Now more than ever, charities need to take advantage of an effective risk management approach to guide their path forward. Without focused action to navigate these turbulent times, charities may find their viability and sustainability diminishing and the health and quality of our societies is at risk.
An effective risk management approach, such as Objective Centric Risk and Certainty Management (ORCM) that I use can strengthen decision-making and focus resources on the actions that will have the greatest impact on obstacles getting in the way of your success.
In Navigating Turbulent Times: Part 1, I introduced the experience of DeafBlind Ontario Services in implementing ORCM. They were able to balance the need to respond immediately while not losing sight of their future sustainability. ORCM provided them with reliable information on the risks that were getting in the way of their success and provided valuable information from which to decide and respond.
In Navigating Turbulent Times: Part 2, you will discover how they addressed many of the common barriers cited by charities in implementing risk management.
Implementation Challenges
The most cited barriers to implementing risk management practices in charities are resources, time, and expertise. The DeafBlind Ontario Services experience was no different. Despite the challenges, they moved forward to implement ORCM during the pandemic and took several steps to reduce the barriers to success.
Resources
The pandemic has reduced charitable giving and challenged the recruitment and retention of valuable staff. It is understandable that charities are reluctant to implement anything that would cause additional strain.
DeafBlind Ontario Services reduced the strain on financial resources by executing a phased implementation approach. As ORCM is equally effective on one or many objectives, they focused the scope of implementation to a handful of mission-critical objectives. In addition, they took advantage of training for key staff that reduced reliance on my services. DeafBlind Ontario Services was clear that the implementation needed to demonstrate benefits very quickly. With that in mind, the implementation was structured to provide training on the methodology interspersed with the application of the concepts. Therefore, when training was completed, results on the critical objectives were completed.
Ongoing staff retention challenges mean that remaining staff are taking on more work and any new initiatives can result in additional strain. To minimize the impact and ensure ORCM takes root in the organization, it is recommended that it be integrated with existing processes and structures. When risk management is handled as a stand-alone activity it often wastes resources and time and doesn’t provide any valuable information from which decisions or actions can be taken.
At DeafBlind Ontario Services, risk discussions quickly became part of, and integrated with, discussions on the progress of objectives and actions that were being taken. To support stronger decisions, risk reporting was integrated with existing reports to clearly demonstrate where the agency was going, what could get in the way and what was being done. This approach lessens the burden on staff and provides transparency and clarity to the Board of Directors, who are responsible for overseeing risk management, and to senior management who are responsible for managing risks to their objectives.
For charities that wish to minimize the cost of an outside expert to guide implementation, free resources can be accessed on ORCM through the Risk Oversight Solutions (ROS) website[1]. In addition, following Tim Leech on LinkedIn, the founder of ORCM, provides a wealth of free information. The trade-off in doing it on your own is that it will take longer, and momentum may be lost.
Time
Implementing an approach that is relevant to staff and helps them accomplish their goals, makes the best use of their limited time. This is critical to implementing and sustaining an effective risk management approach. The ORCM approach does this by anchoring all risk activities to the most critical objectives and assigning accountability.
As noted above, DeafBlind Ontario Services initially focused on a handful of objectives that would provide the greatest influence in the future. This allowed staff who were accountable for achieving the objectives to focus on risks and actions that would have the greatest impact.
At DeafBlind Ontario Services, the COVID-19 pandemic, combined with the final stages of a major amalgamation, placed extra stress on the organization and its leaders. Midway through implementation we paused for a short time, and a quick refresher on starting up again quickly got everyone back on track.
The initial implementation will place greater demands on specific individuals and recede as ORCM matures and becomes rooted in daily decisions. The nature and number of objectives selected for formal assessment will also impact time and effort. Recognizing the changing demands on commitment and responding with flexibility will help to support success.
The more the approach is integrated with existing structure and processes and is relevant to the goals of individuals the more likely that staff will carve out the required time.
Expertise
Many charities may assume that implementing an effective risk management approach requires a Risk Manager position. The reality is that all staff have objectives to achieve and they are managing risk informally every day. Integrating risk management into daily operations helps all staff understand that formally managing risk belongs to everyone in the organization. DeafBlind Ontario Services engaged me as a consultant to build their risk expertise in their management team. Several members of the team continued to build their expertise in ORCM with additional training by Tim Leech through the cRisk Academy[2]. This is a very sustainable approach when management understands the methodology and can ensure it is applied at all levels of the organization.
Building expertise with few or very limited funds can be achieved by accessing free resources on the ORCM approach on the Risk Oversight Solutions (ROS) website or by following Tim Leech, the founder of ORCM, on LinkedIn. Applying ORCM to one objective that will make the most difference in your organization, and expanding to other objectives as expertise builds will provide more valuable information and support to decisions than having nothing in place.
It is important to recognize that formally assessing risks to objectives does take effort and expertise builds as individuals continually apply the concepts and approach.
Conclusion
Objective Centric Risk and Certainty Management is within reach of any charity.
Barriers to implementing and sustaining ORCM, such as time, resources and expertise are to be expected but they are not insurmountable. Understanding the tradeoffs between the barriers and the pace of implementation will help charities make the best choices that work for them.
Don’t let the barriers keep you from moving forward and leveraging the benefits of an effective risk management approach, such as Objective Centric Risk and Certainty Management, that is necessary to navigate through these turbulent times of uncertainty.
Angela Byrne CPA, CMA is enthusiastic about sharing her knowledge and experience and helping others to succeed. She is president of Angela Byrne Consulting Inc., a practice dedicated to working with organizations to manage risks to achieving strategic objectives. Angela has 30 years of practical experience working with a variety of organizations. She is a Chartered Professional Accountant and Certified Management Accountant and holds certifications in risk management assurance, internal audit, and information systems auditing. She can be reached at info@angelabyrnecma.com
