Anxiety + Motivation = Inspiration for Sound Risk Management

Anxiety + Motivation = Inspiration for Sound Risk Management

The struggle for racial equity and the impact of COVID-19 have raised anxiety levels in our sector and in our country. At the Nonprofit Risk Management Center we believe that crisis events often motivate teams to look reflectively at risk management activities. Some authorities on leadership believe that the proper dose of anxiety can help leaders motivate staff and volunteers.

In his book, Just Enough Anxiety, Robert Rosen, of Healthy Companies International, describes a level of discomfort that actually motivates people to higher performance. In Rosen’s view, leaders who create “just enough anxiety” in their organizations motivate because they tell the truth about the present, while maintaining an optimistic view of the future, which produces just enough anxiety to encourage their organization to flourish in a time of uncertainty. Such leaders, he says, ask hard questions, admit mistakes and are responsive to new ideas, all while establishing a balance between growth and safety. They are also skilled in “realistic optimism, constructive impatience and confident humility.”

Risk management looks both at the benefits of pursuing opportunities while also being very focused on the potential downsides. Managing risk cannot be accomplished by hiding past mistakes, denying uncomfortable realities or succumbing to anxiety. Enlightened risk-taking requires awareness of the potential downsides of a new program or approach, thoughtful planning for positive outcomes, and simultaneously ensuring that there is as soft a landing as possible when a venture doesn’t work out as planned.

Nonprofits are as susceptible to unprotected risk-taking as the world’s largest institutions and other businesses. And as the saying goes, 'no money, no mission.' Don't let anxiety about the future stop you from thinking broadly and optimistically about the future. Identify where you want your organization to be in 5 years and the top factors or issues that will influence your ability to achieve that future. And remember that having “just enough anxiety” is a positive when it comes to creative problem-solving.