A holistic risk management approach for non-profit investors

When you hear the phrase “risk management,” what comes to mind? In the financial world, most people immediately think of the risk residing within a specific investment portfolio. However, Russell Investments believes in taking a more holistic perspective, which extends beyond investment portfolio risks to include staying apprised of governance and its impact on the total enterprise.

Of course, building a portfolio designed to weather market turmoil remains vitally important, but investment risk is not the only risk that has an impact on your ability to meet your organizational goals. This paper encourages and analyzes why non-profit organizations should:

• Adopt a holistic approach that includes building the appropriate governance system
• Develop a common set of beliefs
• Incorporate appropriate tools for the measurement and management of risk