Post by Ginny Andrews on Aug 17, 2021 17:21:11 GMT
1. Is Risk ever acceptable? If so, how much risk is acceptable?
Yes. Risk is acceptable and necessary. Without some sort of risk—growth will not happen. Every organization has its own level or risk acceptance that depends upon each situation. Risk is always going to happen. What is most important is doing all we can to prevent and manage it. We need to ensure that our employees are well trained. There are also external and environmental risks that we have no control over such as political events, changes in our economy and political events. However, being prepared and proactive is the best way to limit our risk in all situations.
2. How would you assess your program/company’s overall risk appetite?
Breaking the Cycle needs to be fairly low risk. We need to follow the needs and requests of our funders so we must not take big risks. We do need to show that we are willing to grow and take on new tasks. However, we must do so in a way that does not hurt our reputation. We must always consider if we are meeting our goals and what our funder would want us to do in any situation where we might take on risk.
3. Is operating without risk a smart business decision?
Operating without risk is not a smart decision. Without risk, we will not grow. However, we must be forward thinking about our risk management. There needs be a plan in plan in place and assessments made along the way. An organization needs to look ahead to see where there may be negative financial impact or any reputational risk to an organization. Developing a plan of action for limiting financial loss associated with identified risk and developing effective internal controls over accounting and financial departments are ways to limit risk.
4. Given its growth, what are some risks that The Fedcap Group faces? (include reputational, financial, structural etc.)
There is always potential for risk when there is growth. If we combine with other agencies or programs, there may be financial risks from that agency that are not fully disclosed. There can be high staff turnover due to taking on too much new work or current systems – such as Accounting, payroll, and Human Resources—that cannot take on the increase in workload. Leadership may not agree with how the agency has grown and this may lead to discord among leaders and their teams. Frontline team members may feel neglected, and communication may breakdown as it is more challenging to keep up with larger teams.
When we look to grow our organization, there is also potential for reputational risk. We need to assess the culture and climate of any new organization if we hope to merge with another organization. We always risk our reputation when we open ourselves up to the media. Social media is a way to increase our positive presence in a community, but it also comes with risk as not everyone will agree with or support our mission and what we do. All of these topics should all be considered when considering growth opportunities.
5. How do we engage staff in understanding and actively managing reputational risk?
One of the best ways to ensure staff understand how they contribute to protecting an organizations reputational risk is to ensure that they know our mission and how they help the organization become successful. We need to make sure we communicate our core values and coach them to become successful.
We want to make sure they know their roles and regularly provide feedback to them, so they are performing their jobs to the highest degree. We need to provide tools for them to be successful – training, coaching, and access to technology—that will help support their success.
Focus on their successes will also help facilitate employee motivation. By understanding each person, we will have a better idea of what motivates them and what will make them support our agency culture and brand. This will contribute toward their engagement in managing our risk.
6. Discuss a specific example of reputational risk that is directly relevant to your program/company?
A possible reputational risk for Breaking the Cycle could be that we do not deliver the services that the State of Maine has set forth in our contract. We are required to perform certain tasks for our participants and if we do not meet these goals-this puts Fedcap at risk. There could be a great deal of media attention if we do not meet the standards and if our participants are dissatisfied. This could potentially put future contracts at risk if we do not perform well. Other states or organizations may not award contracts to Fedcap – thus hurting our growth and potentially our bottom line.