I think the vulnerability of non-profits today in comparison to a few years ago would depend significantly on the risk management and contingency plans that the organization has in place that promote longevity, sustainability, and that helps them to whether various external storms. In this case, non-profits may be in the same vulnerable position today that they were in a decade ago. You see, life is filled with uncertainties. Any crises, external shock etc., can happen at any given moment. A decade ago, non-profits were vulnerable to the great recession. During this horrendous period, there were marked economic declines. Fast forward to a couple of years, non-profits had to deal with the economic fallouts of the COVID-19 pandemic and ongoing wars between Russia and Ukraine. Tucci (2023) even pointed out that “a recent external risk that initially manifested itself as a supply chain issue at many companies -- the COVID-19 pandemic -- quickly evolved into an existential threat, affecting the health and safety of employees, the means of doing business, the ability to interact with customers and corporate reputations”.
Meanwhile, at present, non-profits are threatened by rising prices (inflation), cyber risks, data breaches, and climate change among other external risks. In fact, according to Tucci (2023) “new risks are constantly emerging, often related to and generated by the now-pervasive use of digital technology. Climate change has been dubbed a "threat multiplier" by risk experts”. This therefore suggests that non-profits back then and today are constantly challenged and threatened by external variables leaving them in an ongoing vulnerable position. However, non-profits can reduce their vulnerability by heightening their preparedness and enacting contingency plans. Konrad (2023) noted that “many nonprofits were left cash-strapped because they did not have adequate contingency plans in place to weather the recent global shutdown and its aftermath. As a result, the pandemic is prompting more organizations to adopt an ERM approach, which is a business strategy that uses methods and processes to identify and manage risks to an organization”. In a nutshell, risk experts propose that the sustainability, agility, and resiliency of any non-profit will depend tremendously on their proactive approach to guard against present and future threats. Although they will remain in a vulnerable position, they will be more prepared and equipped to combat these external shocks and survive in the ever-changing marketplace.
Are for-profits in a better position to meet the educational needs of the lifelong learner? Wherein lies their competitive advantage?
Some for-profits may be in a better position to meet the educational needs of students while others may not be. Those that are in a better position may have healthier profit margins and a steady influx and flow of revenue. As a result, they will be able to continue spending or increase spending on course updates and service efficiencies. For example, new programs and courses that focus on enhancing the digital knowledge and literacy skills of learners may be offered or introduced by the institution. These courses and programs may focus particularly on AI, AR, VR among other current technological innovations. “Championing digital learning can take many forms from a technical perspective, such as offering students and young people the opportunity to learn how to code, develop creative thinking and better understand data science” (Karoui, 2021). Essentially, DE helps encourage and facilitate lifelong learning of busy working adults and so with technology advancing rapidly, those that are currently in a better position will be able to meet the growing student demands in this digital era. Undoubtedly, this coupled with for-profits' ability to adapt to the changing nature of students’ educational needs give them a competitive advantage against other key players in the industry.
I can’t wait to view your thoughts and contributions!
Krista
MDE student
University of Maryland Global Campus
University of Maryland Global Campus | UMGC
References
Karoui, L. (2021). Nonprofits can play a role in the future of education. Forbes. https://www.forbes.com/sites/forbesnonprofitcouncil/2021/03/26/nonprofits-can-play-a-role-in-the-future-of-education/?sh=2660c30f3c53
Konrad, S. (2023). Four trends that will affect nonprofits in 2023. ASAE. https://www.asaecenter.org/resources/articles/an_plus/2023/1-january/four-trends-that-will-affect-nonprofits-in-2023
Tucci, L. (2023). What is risk management and why is it important? Security. https://www.techtarget.com/searchsecurity/definition/What-is-risk-management-and-why-is-it-important