Nonprofit leaders should be involved in risk management

June 28, 2013

Nonprofit leaders should be involved in risk management

IT professionals are brought on at nonprofit organizations to help decision-makers learn how to take advantage of technological innovations, as well as keep critical information safe from cybercriminals. However, neglecting to actively take part in risk management could be a major mistake for nonprofit leaders. According to new research from security software provider Tripwire and the Ponemon Institute, only 29 percent of IT professionals stated their employer has a strategy for preventing potential risks that is utilized throughout the organization.

"There's a big gap between risk-based security program commitment and how organizations are actually operating," said Elizabeth Ireland, vice president of product marketing for Tripwire.

Risk management is of the utmost importance
Cybersecurity is increasingly important to today's nonprofits as the number of threats continues to grow. Decision-makers understand the need for preventative measures, as 88 percent and 78 percent of respondents stated protecting intellectual property and reducing non-compliance among employees, respectively, are key objectives of their risk-based security initiatives.

Nonprofits that expose their security infrastructure to data breaches can be drained of their funds and not be able to contribute to their intended cause. This is why top leaders have to be involved in how the organization deals with risk.

Dr. Larry Ponemon, chairman and founder of the Ponemon Institute, said IT professional handle risk-based security management, but if organizations truly want to limit their potential for a data breach and have a secure cloud environment for their team, leaders need to take a proactive role in limiting potential threats.

Ponemon added top decision-makers really have no choice but to take a bigger stance in decreasing risks at their organizations, or else they can run into real trouble.

Nonprofits have to look out for certain risks
While nonprofits operate similarly to many businesses, the risks they may potentially encounter are somewhat different. An article for The NonProfit Times pointed out some of the main problems organizations should be sure to defend against:

  • Social media negligence: Nonprofits should use social media to gain a greater following, not damage their reputation with potential donors. Being the victim of a hack has proven to be harmful.
  • Loss of funds: A strong board of investors will limit the amount of money organizations can lose when they run into problems.
  • Insider fraud: While many nonprofits aim to build a trusted team of employees, some organizations have experience internal theft among staff members.
single-post2888

Ready to chat?
Get in touch today to request a no-obligation savings evaluation.

Testimonials

NYCON members who use First Nonprofit’s programs enjoy enduring savings and improved efficiency. Our association knows that success, because from the beginning, we achieved the same great benefits. Great savings, seamless technology, and responsive service. NYCON highly recommends First Nonprofit’s remarkable unemployment solutions.

New York Council of Nonprofits, Albany, NY

We were introduced to First Nonprofit through another housing authority. In our analysis and comparison to what we were paying the State, our first year savings was $5,800 plus. We have been with them since the end of 2008 and I am glad we have been. I consider them an arm of our HR department.

Kankakee County Housing Authority, Kankakee, IL

Because INCS advocates for the operating conditions that allow charter public schools to provide high quality public education, partnering with First Nonprofit was an easy decision. First Nonprofit’s unemployment programs provide our member schools two operating elements crucial to their ability to provide high quality public education: savings and budget certainty. Capable, committed teachers are the key to student success. By participating in the unemployment insurance savings plan, charter public schools gain peace of mind and are able to invest more money in their teachers.

Illinois Network of Charter Schools

Throughout our membership in the Unemployment Savings Program, First Nonprofit understood our demands, community dynamics, and the importance of seamless services; that allowed us to serve our constituents better.

Hugh Parry, Retired President of Prevent Blindness America