“Who Dares Wins,” the motto of the British Special Air Service (SAS), is the battle cry of today’s successful business. But while you need to take risks, you also can’t run your business as Admiral Farragut did in the Civil War battle of Mobile Bay when he loudly commanded, “Damn the torpedoes and full speed ahead!”
So, how does a company grow while simultaneously navigating a landscape with constantly emerging threats? The answer is through Risk Management. Regardless of size, it is imperative EVERY business, church, ministry, or non-profit employs effective risk management strategies because even a small claim against you can quickly snowball into disaster. As Gary Cohn, former President of Goldman Sachs, wisely stated, “If you don’t invest in risk management, it doesn’t matter what business you’re in, it’s a risky business.”
While many businesses address risks relating to their businesses, most nonprofits and churches remain ill-prepared to handle the increasing vulnerability to physical dangers, cyber-attacks, fraud, and other risks. While many churches and nonprofits are aware of their increased exposure, they lack comprehensive plans and resources to adequately manage risk. In 2023, the Enterprise Risk Management (ERM) Initiative at NC State University published its 14th annual State of Risk Oversight report that stated two shocking statistics — over 55% of senior leaders in churches and charities feel unprepared to address risk and almost 70% lack confidence in their ability to handle emerging risk issues.
Global risks to business continue to expand exponentially, and by 2028 the worldwide investment in information security and risk management will surpass $310 billion. Increasingly devastating natural disasters, geopolitical disturbances, cyberattacks, and equipment failures from power grid disruptions can incur dramatic revenue losses. Data breaches skyrocket worldwide and, according to IBM, the average cost per data breach exceeded $4 million in 2024. Poorly managed risks can also result in hefty fines from regulation non-compliance, loss of investor confidence, missed opportunities, and decreased market share.
So, what can you do to change this picture and secure your business, organization, or ministry against the devastation of future risk? Effective risk management strategies identify, assess, and mitigate potential threats to reduce potential negative impacts and ensure long-term success. This helps your organization avoid expensive mistakes, protects its reputation, and ensures stability.
A National Association of Corporate Directors study reported that companies with poor risk management practices experience up to a 29% loss in market value during a crisis, while proactive companies with effective risk management strategies experience stronger financial performance (and their senior leaders sleep more soundly).
Thoroughly appreciating the value of proper risk management and implementing effective safeguards and policies to address risks is your best defense, as a business owner, against an unpredictable economy. Helping identify areas to solidify operations, growing team connections, and creating the best possible customer experience ensures your company’s continued growth, while simultaneously reducing potential risks. But it takes intentionality.
As Albert Einstein wrote, “The only source of knowledge is experience.” So, in addition to experience in conducting assessments, I asked Ballinger about his business background. He responded, “I’ve been blessed to have over twenty years of experience owning my own insurance and risk management company in Chattanooga, licensed to sell insurance in multiple states. I’m also a Supreme Court Listed Rule 31 Mediator, multi-state licensed expert witness, and a public insurance adjuster. So, with all this expertise and background, reviewing contracts, documents, and detailed reports are second nature to me. In fact, many attorneys hire me on retainer for their cases dealing with insurance since I am more knowledgeable and C.P.A.s regularly contact me to consult with their clients.”
Finally, many business owners feel that since they have a policy in place they are covered against everything. This may not be true since many policies have several exclusions and conditions that must be met before the carrier will agree that coverage is available. The failure to understand gaps, exclusions, and specific conditions that can impact coverage is one of the most costly mistakes a business owner can make.”
“My final thought would be to take cyber security seriously. There are many bad characters out there intent on seriously harming you so it is crucial to pursue the best digital protection possible, regularly back up your data, store back-ups in different locations, and employ the best in class data encryption you can get.”
While risks continue to escalate, I love what John Maxwell shared, “If you are proactive, you focus on preparing. If you’re reactive, you end up focusing on repairing.” And as early American sage Benjamin Franklin wrote, “An ounce of prevention is worth a pound of cure.” So, if your company has a risk prevention department, I congratulate you. If you do not, I recommend you contact a highly qualified risk management company and take steps to begin protecting your company from the dangers that lurk around every corner.
For more information contact John Ballinger at john@ballingerandassociates.com.
Reen Waterman is a national speaker, author and business coach who equips today’s professionals with the soft skills that drive real world success. Certified by the Charleston School of Protocol, he works to empower businesses to elevate their communication, customer service, professionalism and teamwork. Learn more here.