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Key Drivers of Effective Risk Management Identified in New Blackbaud Institute Report

In a landscape where uncertainty looms large, the recent report published by the Blackbaud Institute sheds vital light on how social impact organizations can effectively navigate risks. Titled Risk Readiness: A Report on Leading with Confidence in Uncertain Times, the study, based on a national survey with input from 549 social impact professionals, presents crucial insights into the methods that foster confidence in risk management.

Embracing a Proactive Mindset

The findings highlight that organizations that adopt proactive strategies and promote an innovative culture are significantly more resilient than their counterparts. As noted by Todd Lant, Blackbaud's Chief Customer Officer, "Risk is universal, but readiness isn't." This declaration encapsulates the core message of the report: while risk is an inevitable aspect of any operation, readiness can be enhanced through strategic planning and innovation.

Three Categories of Readiness
The report categorizes organizations into three distinct segments based on their cumulative readiness scores:

• - Reactive (23%): Organizations in this group show higher levels of concern and lower preparedness across various risk areas.
• - Responsive (48%): These organizations demonstrate moderate responsiveness but lack a considerable investment in proactive measures.
• - Proactive (29%): Organizations classified as proactive exhibit a high degree of preparedness and significantly lower concern levels regarding potential risks.

Key Concerns Facing Social Impact Organizations

While the report identifies a range of risks, two main concerns dominate the landscape: changes in government policies and revenue generation. Strikingly, only 30% of surveyed professionals felt adequately prepared to address these challenges. Nonetheless, those with a proactive mindset are more inclined to update strategic plans, engage with board members, set clear fundraising goals, and prioritize their technology strategy.

The Role of Technology in Risk Management

Technology emerges as a defining factor that distinguishes proactive organizations from reactive ones. The least prepared professionals express worries about effective use of their technological tools, data security, and training. Conversely, proactive organizations tend to upgrade their technology systems regularly, integrate multiple tech solutions, and develop comprehensive continuity plans to mitigate risks.

Prioritizing Staff Well-being

Another significant finding from the report is that staff burnout is a major challenge for organizations. However, less than a quarter of those surveyed had a staff continuity plan in place. Proactive organizations are taking the requisite steps to invest in personnel, update employee benefits, and enhance internal communications. Such measures are essential to maintaining organizational resilience and employee morale.

Readiness Beyond Resources

A noteworthy revelation is that an organization's size or budget doesn't necessarily equate to its readiness. Among proactive organizations, 57% report having fewer than 100 employees, and less than half earn over $11 million annually. This indicates that a strategic mindset, rather than abundant resources, is a critical determinant of organizational success in risk management.

A Tool for Assessment

The report also presents a readiness assessment tool. This allows organizations to evaluate their preparedness levels and receive tailored action steps to enhance their resilience. It acts as a risk barometer for social impact organizations, providing data-driven insights from leaders across the sector.

Commitment to Social Impact Through Research

The Blackbaud Institute aims to empower the social impact sector through research, helping organizations to better understand their operations and the challenges they face. Committed to transparency and accessibility, the Institute's resources are available at no cost to further drive social impact through knowledge.

In summary, the 2025 Risk Readiness Report serves as a crucial resource for social impact organizations looking to bolster their risk management strategies, emphasizing the importance of a proactive mindset, technological investment, and a focus on staff well-being.