Why strong governance and risk management skills are so critical for NFP leaders

Good governance is core to performance. 

Good governance and risk management practice provides a body of knowledge for any leader to ensure that the organisation is compliant and striving for excellence. 

For experienced leaders, this body of knowledge provides a high level of accountability. For new or emerging leaders, good governance and risk management ensures sustainable growth.  

Unique governance and risk management challenges in not-for-profits 

The biggest challenge is getting the right people for governance and risk management roles. You need someone who is committed in terms of knowledge and time, adhere to best practice and actively participate in striving for excellence in governance within the NFP sector. 

Good governance is as valid for the NFP sector as any other sector. Some people see NFP board and governance roles as an opportunity to tick the box to start out and build their governance experience. 

You shouldn’t join to just tick a box. This sector is so unique, and if you want to be involved, you need to contribute and be focused on community development and giving back. 

It’s important that you have more than just passion. 

Technology is changing the governance and risk management landscape 

Technology has changed the landscape in three main ways:  In terms of capability to govern, it has aided the access to documentation, and access to people. Technology has brought boards together and allowed us to widen the geography of members. 

Technology has also affected pace of change and culture: Change is a fact of life. But it’s challenging. The pace of change needs to be supported and embraced. It’s labour and funding-intensive, so it needs to be modelled effectively with room to adapt as change progresses. 

There is clear impact in Cyber and data security: There is more risk than ever before. This has stretched training and resources. We need to ensure that we have the cyber risk skillset embedded in the organisation and ensure that we’re responsive to ongoing change. A full story is dedicated on this topic in Liz’s blog. 

Enhance skills and grow network at Governance Institute’s Not-for-Profit Governance Forum 

Engage. Deliver. Grow. 

Gain practical advice on how to integrate good governance and risk management within your NFP at both a strategic and operational level at Governance Institute’s one–day forum for NFPs.  

The NFP sector is diverse and faces greater governance expectations. Good governance and strong leadership are essential to the strength of your NFP organisation during these challenging times of significant sectoral change.  

Hear from NFP experts, who will challenge your current thinking, encourage innovation and share solutions that support you with your operational and governance challenges. And network with fellow NFP professionals on the key issues facing the sector.  

Upcoming Not-for-Profit Governance Forum events  are in QLD ⁠on 10 October and in NSW on 11 October ⁠. 

About the Contributor:

Liz McCoy is the Founder And Director Of Leadership Zone 
 

Third Sector

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Third Sector provides high-level content and services for professional development and organisational growth to leaders and senior executives from Australia’s NFP sector and its supporting industries.

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