Just as new challenges have caused nonprofit managers to utilize innovative approaches, the concept of enterprise risk management (ERM) requires a new kind of thinking for minimizing or handling risk.
During the recent Nonprofit Executive Summit in Santa Fe, N.M., Diana Del Bel Belluz of Risk Wise Inc., stressed the importance of effective ERM, moving to manage risk ahead of time, rather than just responding to situations. She said that ERM has a four-phase implementing and learning cycle, and it truly is a cycle that returns to the place from which it starts.
The four phases are:
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