Nonprofits Slow to Implement Enterprise Risk Management
Based on a recent survey by the North Carolina State University’s ERM Initiative for the American Institute of CPAs, only 13 percent of nonprofits have implemented a formal enterprise risk management (ERM) process. Conversely, 52 percent of public companies and 43 percent of financial services companies surveyed have employed an ERM. Addressing the low rate at a nonprofit conference last month, WeiserMazars consulting partner Bob Cummings identified six ways nonprofits can execute and maintain ERM:
- Have a risk management governance structure;
- Follow a risk management framework;
- Continuously identify risk and the risk event universe;
- Create and manage a risk profile;
- Establish risk responses; and
- Monitor and report.
To read the full article, visit the CGMA’s website. For additional information, please contact a member of our Education or Nonprofit teams. Also, stay tuned for information about our upcoming webinar on ERM for nonprofits in October.