08/18/2021

How to Assess Emerging Risks

Then know how to respond

Accomplishing bigger goals with increased efficiency often means taking a risk on new technology, processes or people. It would be great if your association could know the result of every strategic choice in advance. But your association’s strategic documents aren’t a choose-your-own-adventure book you can replay a dozen ways. Assessing your association’s risk tolerance as business and social risks evolve is essential.

First, you must understand your industry’s regulatory and operational landscape. Some industries can tolerate more experimentation. Others, such as healthcare or finance, cannot. Know how innovatively and quickly you can ethically respond as you assess your risk tolerance.

Next, examine the complexity of your organizational structure. How many divergent teams or systems does your association have? The more interconnected your departments or networks, the more likely an adverse event—even a small one—will affect some or all of your association’s operations. Your association’s risk threshold decreases as your departments’ and initiatives’ dependencies increase.

Please select this link to read the complete article from Associations Now.