*GUEST POST* We asked Karen McBride MBA, ORMP to share some of her insights about enterprise risk management for co-operatives and credit unions.
If you think about it, co-operatives were created to reduce the risk that individuals would not survive lean times and harsh conditions. By working together, people discovered creative ways to pool their time, money, and talent to not only help each other survive, but eventually thrive to build communities, social systems, and nations. This powerful process continues to this day – the transformational power of co-operatives is especially evident in developing countries.
Once launched, credit unions and co-ops quickly got busy managing the risks that could damage their bottom line or threaten their survival – risks such as theft, fraud, credit losses, and damage from fire or natural disaster. Up until about twenty years ago, risks such as these were largely regarded as individual events.