Ethical Storytelling
4 Components of Risk Management for Nonprofits
Protecting and respecting the rights and interests of storytellers is the cornerstone of ethical storytelling. Every aspect of the process must be approached with this as the paramount concern.
But ethical storytelling also requires that the interests of the organization be considered and protected. The way to achieve this is by making storytelling part of your organization’s risk management process.
Risk is inherent in everything, including ethical storytelling. But that doesn’t mean you should stop collecting and sharing stories. By making storytelling part of the risk management process, you can safeguard both the interests of the storytellers and those of the organization.
What is Risk Management (& How Does it Relate to Nonprofits)?
Risk management in nonprofits refers to the process of identifying, assessing, and mitigating potential risks that could harm the organization, its stakeholders, or its mission. While for-profit businesses often focus on financial or operational risks, nonprofits face additional, unique challenges that require careful attention to legal, reputational, and ethical risks. Effective risk management allows nonprofits to safeguard their resources, protect the people they serve, and maintain public trust—elements that are critical to advancing their mission.
When it comes to storytelling, risk management becomes even more crucial. Storytelling is a powerful tool for nonprofits to engage donors, raise awareness, and demonstrate impact, but it comes with significant risks if not handled ethically. For example, sharing stories without proper consent or exploiting vulnerable individuals for emotional appeal can damage a nonprofit’s reputation and erode trust. By approaching storytelling with a risk management mindset, nonprofits can tell compelling stories while protecting the dignity of their subjects and the integrity of their mission.
The 4 Components of an Effective Risk Management Process
In my work with nonprofits, I have found that an effective risk management process involves four key components:
- Identifying
- Assessing
- Managing
- Monitoring
Let’s dig into each one:
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Identifying Risks
This is where you ask, “What could go wrong?”
A risk is anything that affects the organization’s mission or operations. Here are potential risks with storytelling:
- Lack of Informed Consent: To share someone’s story, you need their informed consent to do so. Informed consent means that they understand and appreciate the nature and significance of what they are consenting to.
- Re-Traumatization: When interviewing someone, particularly if your mission serves people with sensitive stories, your approach needs to avoid re-traumatization.
FOX TIP: Maria Bryan, another MemoryFox partner, is the leading voice on conducting trauma-informed interviews. Consider joining one of her upcoming Storytelling Circles to learn more about conducting trauma-informed interviews.
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Assessing Risks
This is where you ask “How big is this risk?”
Once you identify the risks, the next step is to assess the likelihood that they will occur and the impact they will have on the organization if they do occur. A risk matrix is a helpful tool to use for this step.
To assess the likelihood of a risk, you will need to look at the organization’s current practices and policies. Based on those, you will assess how likely it is for the risk to occur. How likely is it that someone’s story will be shared without their informed consent? How likely is it that an individual will be re-traumatized by sharing their story?
To assess the impact of a risk, you will need to determine what could happen if the risk did occur. What could happen to the organization if a story is shared without informed consent?
What could happen to the organization if an individual is re-traumatized?
Potential impacts related to storytelling risks are:
- Lawsuits brought against the organization
- The organization’s reputation is negatively affected
- The organization must spend money to recreate or republish materials
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Managing Risks
This is where you ask – “How do we reduce this risk?”
An important part of risk management is determining the organization’s risk tolerance. This will dictate how the organization responds to and manages identified risks.
When it comes to managing the risks involved with storytelling, one of the best tools you have in your arsenal is a written consent form. The most important part of this form is the actual consent, which should clearly explain what the individual is consenting to.
Some other provisions to consider are:
- Compensation – A provision stating whether or not the individual is being compensated for sharing their story. This reduces the risk that an individual will seek payment or additional payment for sharing their story.
- Intellectual Property – A provision establishing that the materials created by the organization are the sole property of the organization. This reduces the risk that materials incorporating the individual’s story are improperly used or distributed by others.
- Release – A provision that releases the organization from liability or claims related to the use of the individual’s story. This reduces the risk of claims being made against the organization.
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Monitoring Risks
This is where you ask – “How are we doing at managing this risk?”
Risk management is an ongoing process. It is crucial to continuously assess identified risks and identify any new ones. Set a timeframe for your organization to reconsider and make updates to Steps 1-3.
Overall, considering the risks associated with nonprofit storytelling is essential for your organization. It’s important that your nonprofit’s risk management strategy ensures that the stories you share are not only impactful, but also ethically and legally sound. By actively identifying, assessing, managing, and monitoring potential risks associated with storytelling, you can protect both your organization and the people who generously share their stories. Ethical storytelling should never be about avoiding stories altogether but about sharing them in a way that upholds the dignity of individuals and strengthens your mission. When done with care and thoughtfulness, storytelling becomes a powerful, low-risk tool that enhances your organization’s impact and trustworthiness.
About the Author
Allie Levene
Attorney, Levene Legal
Allie Levene is an attorney and the founder of Levene Legal, which specializes in providing affordable and accessible legal services to small businesses and nonprofits. Before founding Levene Legal, Allie served as in-house and outside counsel for a number of Connecticut businesses. In those roles, she represented clients in litigation and administrative proceedings related to employment, civil rights, and general liability. Connect with her!