CAVR 2009 Risk Management PPT

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Presentation by D. Radford
Topic: Risk Management for Nonprofits
Presented at VolpediA - CAVR 2009 Conference

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  • Nonprofit, provincial organization committed to: Increasing Alberta’s capacity to support volunteerism Mission: To create possibilities in Alberta’s voluntary sector by strategically connecting leaders, members, organizations and networks
  • The council brings together the insurance industry, voluntary sector, and address the insurance related issues facing this sector Members Include: Volunteer and Voluntary Sector organizations in Alberta Insurance organizations, businesses and professionals Government of Alberta
  • CIP 20 years of experience Owned agency 12 years AUMA account manager
  • The Greatest Risk of All: DO NOTHING
  • Every policy has exclusions that limit the insurance coverage provided.
  • Every policy has exclusions that limit the insurance coverage provided.
  • CAVR 2009 Risk Management PPT

    1. 1. Risk Management Strategy & Tactics
    2. 2. Risk Management “ Any organization that provides programs to the public has a moral, legal and spiritual obligation to institute appropriate risk management practices for volunteer programs. This is not only the right thing to do; it is legally required under the principle of duty of care .” Marlene Deboisbriand Risk Management
    3. 3. Lead Organizer volunteeralberta.ab.ca Lead Organizer
    4. 4. <ul><li>A lberta Voluntary Sector Insurance Council (AVSIC) </li></ul>History History <ul><li>Risk management being more than insurance was identified as an educational priority of Alberta Voluntary Sector Insurance Council in 2005 because of the impacts of the “hard market” on nonprofit/voluntary sector organizations. </li></ul><ul><li>Two seminars developed: Directors’ and Officers’ Liability and General Insurance funded by Insurance Bureau of Canada , Wild Rose Foundation, and Volunteer Alberta </li></ul><ul><li>2008 – WRF, The Co-operators, and Volunteer Alberta funded Risk Management Seminars </li></ul>
    5. 5. Presenter <ul><li>Don T. Radford </li></ul><ul><li>MBA FCIP CCIB CRM </li></ul><ul><ul><li>Insurance Professional - 30 years </li></ul></ul><ul><ul><li>Specialty: Commercial Insurance </li></ul></ul><ul><li>Management Consultant, Author, Trainer </li></ul>Presenter
    6. 6. <ul><li>Insurance is risk management </li></ul><ul><li>Insurance takes care of everything </li></ul><ul><li>If I don’t know about it, it can’t hurt me </li></ul><ul><li>so I am not responsible </li></ul>Risk Management MYTHS
    7. 7. <ul><ul><li>Buildings won’t burn </li></ul></ul><ul><ul><li>Computers won’t crash </li></ul></ul><ul><ul><li>Executive Director will never leave, get sick </li></ul></ul><ul><ul><li>Staff would never…….!! </li></ul></ul><ul><ul><li>We can’t control our volunteer’s actions, so we can’t be held liable for what they do </li></ul></ul>Risk Management MYTHS
    8. 8. What is Risk? <ul><li>Any impact caused by internal/external situations or events that prevents: </li></ul><ul><ul><li>Achievement of objectives </li></ul></ul><ul><ul><li>Delivery of services </li></ul></ul><ul><ul><li>Carrying out projects or events </li></ul></ul><ul><ul><li>Risk is: </li></ul></ul><ul><li>“ measured by its likelihood and consequences ” </li></ul>What is Risk?
    9. 9. <ul><li>The Process that an organization uses to: </li></ul><ul><ul><li>Identify </li></ul></ul><ul><ul><li>Assess </li></ul></ul><ul><ul><li>Control </li></ul></ul><ul><ul><li>Minimize </li></ul></ul><ul><ul><li>the risks of Bodily Injury or Financial Loss </li></ul></ul><ul><li>arising from its activities and operations. </li></ul>Risk Management:
    10. 10. <ul><li>Discipline for managing the possibility that some future event will cause harm </li></ul><ul><li>It provides strategies and techniques to recognize and confront threats or danger </li></ul>Risk Management
    11. 11. Pre-Loss Loss Prevention Risk Analysis Risk Treatment Policies/Procedures What you do here affects Post Loss Mitigation Manage Media Documentation Settlement What you do here affects Future Continuity Credibility Reputation Survival Will you make it? INSURANCE / COSTS Claim Payment TIME Risk Management CLAIM/LOSS
    12. 12. What is Liability? <ul><li>Our laws make every person/organization liable for acts or omissions that cause damage to other’s property or injury to persons . </li></ul><ul><li>We have a legal obligation to: </li></ul><ul><li>Be aware of the losses we cause </li></ul><ul><li>Compensate those who suffer as a result or </li></ul><ul><li>consequence of our activities </li></ul>What is Liability?
    13. 13. What is Liability? <ul><li>Those who undertake an enterprise are required to take </li></ul><ul><li>all reasonable means to reduce the risk of loss by others </li></ul><ul><li>Demonstrate an ability and attempt to manage risks </li></ul><ul><li>Its called: Due diligence </li></ul><ul><ul><li>The Greatest Risk of All: DO NOTHING </li></ul></ul>
    14. 14. What is Liability? <ul><li>Due Diligence </li></ul><ul><ul><li>Effort made by an ordinarily prudent or reasonable party to avoid harm to another party </li></ul></ul><ul><ul><li>Failure to make this effort is considered negligence </li></ul></ul><ul><ul><li>Standard of care imposed by our courts </li></ul></ul>
    15. 15. What is Liability? <ul><li>Due Diligence (Directors) </li></ul><ul><ul><li>Duty to act cautiously </li></ul></ul><ul><ul><li>Must be seen to attempt to anticipate consequences of decisions or actions </li></ul></ul><ul><ul><li>Obligation to foresee potential risks and take reasonable action to manage them </li></ul></ul>
    16. 16. What is Liability? <ul><li>Negligence </li></ul><ul><li>Legal concept of fault or who is to blame </li></ul><ul><li>Means that someone: </li></ul><ul><ul><ul><li>Failed to do something they should have </li></ul></ul></ul><ul><ul><ul><li>Did something they should not have </li></ul></ul></ul><ul><li>There is a Standard of Care our laws require </li></ul>
    17. 17. What is Liability? <ul><li>Standard of Care as defined by courts: </li></ul><ul><li>Whether the danger was foreseeable </li></ul><ul><li>Was the conduct within acceptable standards? </li></ul><ul><li>Was an inspection process in effect and used? </li></ul><ul><li>Did danger exist an unreasonable time? </li></ul><ul><li>The ease of preventing the danger </li></ul>
    18. 18. Why Risk Management? <ul><li>Every activity has inherent risks, potential liability and opportunities </li></ul><ul><ul><li>Risk management is a proactive, continuous process </li></ul></ul><ul><ul><li>that identifies, measures and manages those risks </li></ul></ul><ul><ul><li>Enables decision making as to whether a risk is </li></ul></ul><ul><ul><li>acceptable or requires further action </li></ul></ul><ul><ul><li>Its Purpose : To avoid, reduce or prevent risk from </li></ul></ul><ul><ul><li>imposing negative consequences </li></ul></ul>
    19. 19. <ul><li>Projects and programs achieve better results </li></ul><ul><li>Process leads to effective decision making </li></ul><ul><li>Provides valuable decision making information </li></ul><ul><li>Assists in clearly defined insurance needs </li></ul>
    20. 20. <ul><li>Enhances regulatory compliance requirements </li></ul><ul><li>Assists in audit preparation </li></ul><ul><li>Reducing risk creates greater confidence in your activities - encourages people to participate </li></ul>
    21. 21. Why Manage Risk? <ul><ul><li>Gives managers the confidence to make decisions </li></ul></ul><ul><ul><li>about how to manage risk to an acceptable level </li></ul></ul><ul><ul><li>Creates effective planning and preparation with appropriate and adequate resource allocation </li></ul></ul><ul><ul><li>Enables contingency plans to deal with the consequences </li></ul></ul>
    22. 22. <ul><li>Managing the uncertainty of risk causes decision makers to: </li></ul><ul><ul><li>Think more carefully about all issues </li></ul></ul><ul><ul><li>Identify the most important risks, then set priorities to manage them </li></ul></ul><ul><ul><li>Prepare for contingencies with plans and training </li></ul></ul><ul><ul><li>Overall : It saves time, effort and financial resources </li></ul></ul>
    23. 23. Risk Management Decisions <ul><li>Lead, support and enable: </li></ul><ul><li>Achievement of organizational objectives </li></ul><ul><li>Due diligence issues </li></ul><ul><li>Management of the uncertainty and consequences of future events </li></ul>
    24. 24. Risk Management Decisions <ul><li>Lead, support and enable: </li></ul><ul><li>A continuous, proactive and systematic process to understand, manage and communicate risk </li></ul><ul><li>Cost-effective procedures to prepare for and finance the consequences of a loss </li></ul>
    25. 25. What It Considers <ul><li>Risks at all levels of operations (strategic, operational and project/events) </li></ul><ul><li>Business objectives, decision making and management framework </li></ul><ul><li>The entire organization : from the board to senior management, employees, volunteers and members </li></ul>
    26. 26. What It Considers <ul><li>Risk Assessment (What do you need to know?) </li></ul><ul><li>To assess potential risks, consider: </li></ul><ul><li>Likelihood : the probability and frequency </li></ul><ul><li>Consequences : what are they - loss, injury, </li></ul><ul><li>disadvantage or gain? </li></ul><ul><li>What will they cost? </li></ul>
    27. 27. What It Considers <ul><li>The adequacy of existing risk management strategies – are they working? </li></ul><ul><li>Decide which risks are to be treated and how </li></ul><ul><li>- accepted, managed or transferred? </li></ul><ul><li>Determine how you pay for them? </li></ul>
    28. 28. <ul><ul><ul><li>PEOPLE </li></ul></ul></ul><ul><ul><ul><li>PROPERTY </li></ul></ul></ul><ul><ul><ul><li>LIABILITY </li></ul></ul></ul><ul><ul><ul><li>INCOME </li></ul></ul></ul><ul><ul><ul><li>REPUTATION </li></ul></ul></ul>
    29. 29. <ul><li>PEOPLE </li></ul><ul><ul><li>The talent, commitment and community </li></ul></ul><ul><ul><li>Staff, volunteers, clients, board members, donors </li></ul></ul><ul><ul><li>Injuries never fully repaired, often expensive </li></ul></ul><ul><ul><li>Nonprofits help people, not hurt them </li></ul></ul>
    30. 30. <ul><li>PROPERTY </li></ul><ul><ul><li>Owned, leased, rented, borrowed, loaned </li></ul></ul><ul><ul><ul><li>if damaged who is responsible? </li></ul></ul></ul><ul><ul><li>Kept in one place – office equipment, buildings </li></ul></ul><ul><ul><li>In various places or travels from place to place </li></ul></ul><ul><ul><li>To transport people or property – vehicles </li></ul></ul>
    31. 31. <ul><li>PROPERTY (Specialized) </li></ul><ul><ul><li>Computers and data – cannot afford to lose </li></ul></ul><ul><ul><ul><li>Must have physical protection </li></ul></ul></ul><ul><ul><ul><li>Do not rely on insurance </li></ul></ul></ul><ul><ul><li>Cash, Securities, Financial Assets </li></ul></ul><ul><ul><ul><li>Must have specific handling procedures </li></ul></ul></ul>
    32. 32. <ul><li>LIABILITY </li></ul><ul><ul><li>Arising from activities, operations, programs </li></ul></ul><ul><ul><li>Supervision of staff and volunteers </li></ul></ul><ul><ul><li>Transportation of people and property </li></ul></ul><ul><ul><li>Decisions made by directors and officers </li></ul></ul>
    33. 33. <ul><li>LIABILITY </li></ul><ul><ul><li>Occupancy of non-owned buildings or facilities </li></ul></ul><ul><ul><li>Use of non-owned vehicles </li></ul></ul><ul><ul><li>Injuries to staff, volunteers, participants </li></ul></ul><ul><ul><li>Special events for fundraising </li></ul></ul>
    34. 34. <ul><li>INCOME (You cannot function without $$$ ) </li></ul><ul><ul><ul><li>Loss of funding </li></ul></ul></ul><ul><ul><ul><li>Event proceeds inadequate </li></ul></ul></ul><ul><ul><ul><li>Contract cancelled </li></ul></ul></ul><ul><ul><ul><li>Disasters such as fire or flood </li></ul></ul></ul>
    35. 35. <ul><li>REPUTATION: (You cannot afford to lose) </li></ul><ul><ul><li>NO INSURANCE AVAILABLE </li></ul></ul><ul><ul><li>Key to fundraising, volunteer recruitment, </li></ul></ul><ul><ul><li>staff retention </li></ul></ul><ul><ul><li>Difficult to quantify, critical to maintain </li></ul></ul><ul><ul><li>Occurs in wake of a crisis </li></ul></ul>
    36. 36. Main Principles <ul><li>Commitment of senior management to a formal, documented, integrated risk management process </li></ul><ul><li>Clear, defined responsibility & accountability for functions, activities and associated risks </li></ul><ul><li>Use of common risk language </li></ul>
    37. 37. Main Principles <ul><li>A process for identification and treatment of risk integrated with existing management </li></ul><ul><li>Commitment reinforced by training </li></ul><ul><li>Outcomes monitored by senior management </li></ul>
    38. 38. Strategic Objectives <ul><li>Risk Identification and Mitigation </li></ul><ul><li>Ready to take advantage of opportunities </li></ul><ul><li>Reducing uncertainty, increases confidence </li></ul>
    39. 39. Strategic Objectives <ul><li>Be a good citizen </li></ul><ul><ul><li>Fulfilling legal and ethical issues - reduces chances of being sued </li></ul></ul><ul><ul><li>Fosters favorable public image - improves public support, attracts members and funds </li></ul></ul>
    40. 40. The Risk Management Process <ul><ul><li>Establish the context: Why do this? </li></ul></ul><ul><ul><li>Identification: What are the risks? </li></ul></ul><ul><ul><li>Analysis/evaluation: How much will it cost? </li></ul></ul><ul><ul><li>Treatment: What can/should/needs to be done? </li></ul></ul><ul><ul><li>Communicate: Who needs to know and when? </li></ul></ul><ul><ul><li>6. Monitor: Review results, adjust where needed </li></ul></ul>
    41. 41. How It Starts <ul><li>With a Risk Management Statement </li></ul><ul><ul><li>“ To ensure ongoing, unimpeded capacity of _______ to fulfill its mission, perform its key functions and meet its objectives by: </li></ul></ul>
    42. 42. How It Starts <ul><ul><li>Protecting ( Your Nonprofit ) from adverse incidents by </li></ul></ul><ul><ul><li>reducing its exposures to loss, preparing to mitigate and </li></ul></ul><ul><ul><li>control loss should it occur, and thereby reduce the </li></ul></ul><ul><ul><li>cost of risk </li></ul></ul><ul><ul><li>Adopting Risk Management practices throughout </li></ul></ul><ul><ul><li>Ensure all members are aware of the need to manage </li></ul></ul><ul><ul><li>risk and promote participation in that process </li></ul></ul>
    43. 43. Fundamental Questions <ul><li>What assets and resources do you rely to achieve your objectives? </li></ul><ul><li>What risks can affect those assets and resources? </li></ul><ul><li>What affects or consequences can those risks create? </li></ul>
    44. 44. Fundamental Questions <ul><li>How will consequences affect what we do? </li></ul><ul><li>How much will those consequences cost – time, energy, money? </li></ul><ul><li>How will this affect our ability to continue? </li></ul><ul><li>How do we manage to prevent or avoid the affects? </li></ul>
    45. 45. Basic Risk Management <ul><li>1. Identify possible risks – external/internal - consider </li></ul><ul><li>what problems/possibilities do they contain? </li></ul><ul><li>2. Assess the probability of each risk, consider the </li></ul><ul><li>potential frequency and severity of it happening </li></ul><ul><li>3. Create a plan that treats the critical risks - how they </li></ul><ul><li>can be avoided, accepted, or transferred </li></ul>
    46. 46. Basic Risk Management <ul><li>4. Implement the plan, train personnel to </li></ul><ul><li>understand how and why they are involved </li></ul><ul><li>5. Monitor and evaluate the success of the risk </li></ul><ul><li>management plan, adjust when and where </li></ul><ul><li>needed </li></ul><ul><li>6. Communicate the results to stakeholders </li></ul>
    47. 48. Communication/Consultation <ul><li>Components for effective/sustainable decisions: </li></ul><ul><ul><li>Ensure participants understand why and where they are needed, what is expected of them , that they are engaged and contribute </li></ul></ul><ul><ul><li>Gather experiences, information, ideas, input and perspectives, share the results </li></ul></ul>
    48. 49. Communication/Consultation <ul><ul><li>Collect and share factual information from all relevant sources </li></ul></ul><ul><ul><li>Most effective where people are valued and their viewpoints respected </li></ul></ul>
    49. 50. Risk Communication <ul><li>Critical process: </li></ul><ul><ul><li>Builds trust and encourages buy-in through </li></ul></ul><ul><ul><li>shared decision-making </li></ul></ul><ul><ul><li>Reduces misperceptions, misunderstandings </li></ul></ul><ul><ul><li>Improves the technical understanding or </li></ul></ul><ul><ul><li>“ science” of what needs to be done </li></ul></ul>
    50. 51. Without Communication <ul><ul><li>Loss of management credibility </li></ul></ul><ul><ul><li>Protracted, unnecessary, costly debate and </li></ul></ul><ul><ul><li>conflict with stakeholders </li></ul></ul><ul><ul><li>Diversion of management attention and resources </li></ul></ul><ul><ul><li>away from more valuable issues </li></ul></ul><ul><ul><li>Lack of support by employees and volunteers </li></ul></ul>
    51. 52. Risk Identification/Mitigation <ul><ul><li>Enables decisions about potential risks that </li></ul></ul><ul><ul><li>risk is either acceptable or requires treatment </li></ul></ul><ul><ul><li>Minimizes the possibility that risk will go </li></ul></ul><ul><ul><li>undetected – no surprises </li></ul></ul><ul><ul><li>Concept: manage risk within acceptable levels </li></ul></ul>
    52. 53. Successful Risk Management <ul><li>Aligned with an organization's overall objectives, strategic direction, operating practices and internal culture </li></ul><ul><li>Is a factor in setting priorities and revenue allocation </li></ul><ul><li>Integrated within existing governance and decision-making structures </li></ul>
    53. 54. Critical Success Factors <ul><li>Strong involvement by upper management </li></ul><ul><li>Organized process for risk analysis and response </li></ul><ul><li>Assignment of specific risk responsibilities </li></ul>
    54. 55. Practical Strategies <ul><li>Assume the risk </li></ul><ul><li>Decide that the risk is minor and do nothing </li></ul><ul><li>Reduce the risk </li></ul><ul><li>Change people’s behaviour or the environment so that risk is reduced </li></ul><ul><ul><li>Pre-loss activity example: preparation of contingency plans before a loss occurs </li></ul></ul>
    55. 56. Practical Strategies <ul><li>Eliminate/Avoid the risk </li></ul><ul><li>Fix the problem </li></ul><ul><li>Remove it or choose not to begin </li></ul><ul><li>Transfer the risk </li></ul><ul><li>Accept the risk - transfer the cost and responsibility to someone else </li></ul>
    56. 57. Practical Strategies <ul><li>Control - Post-loss: </li></ul><ul><li>Keep resulting damages to a minimum </li></ul><ul><li>Control the contingent consequences </li></ul><ul><li>Called mitigating loss – required by insurance </li></ul><ul><ul><li>Examples: </li></ul></ul><ul><ul><ul><li>Effective administration of third party claims </li></ul></ul></ul>
    57. 58. Practical Strategies <ul><li>Contractual Risk Transfer </li></ul><ul><li>Transfers the risk of a specific activity or project to another party through a contract </li></ul><ul><li>Waivers, disclaimers, indemnity agreements, hold harmless agreements, work contracts </li></ul><ul><li>Insurance is a form of contractual risk transfer </li></ul>
    58. 59. Transfer to Insurance <ul><li>Some exposures may be uninsurable </li></ul><ul><ul><ul><li>Loss of reputation </li></ul></ul></ul><ul><li>All Insurance policies have exclusions </li></ul><ul><li>Losses may exceed policy limits </li></ul>
    59. 60. Policy Exclusions <ul><li>Exist to: </li></ul><ul><ul><li>Eliminate uninsurable loss exposures : </li></ul></ul><ul><ul><ul><li>Those not accidental, or predictable </li></ul></ul></ul><ul><ul><ul><li>Within the control of the insured </li></ul></ul></ul><ul><ul><ul><li>Catastrophic </li></ul></ul></ul><ul><ul><li>Manage moral and morale hazards </li></ul></ul><ul><ul><ul><li>Intentional acts </li></ul></ul></ul><ul><ul><ul><li>Loss caused by undue care and attention </li></ul></ul></ul>
    60. 61. Policy Exclusions <ul><ul><li>Avoid coverage duplication : </li></ul></ul><ul><ul><ul><li>Other insurance is available </li></ul></ul></ul><ul><ul><li>Eliminate coverage for extreme risks </li></ul></ul><ul><ul><ul><li>Those requiring special treatment – flood, earthquake </li></ul></ul></ul><ul><ul><li>Keep premiums at a reasonable level </li></ul></ul><ul><ul><ul><li>No policy can or will insure everything </li></ul></ul></ul>
    61. 62. Effective Risk Management Plans <ul><li>Reflect the range of stakeholder perspectives </li></ul><ul><li>Express the belief in and support of a risk management philosophy and practice </li></ul><ul><li>State that all personnel are vital in protecting the mission, reputation and assets </li></ul>
    62. 63. Implementation <ul><li>Assign responsibility and accountability </li></ul><ul><li>Allocate required resources </li></ul><ul><li>Document (record of decisions and plans) </li></ul><ul><li>Establish criteria to measure performance </li></ul>
    63. 64. Implementation Strategies <ul><li>Define framework – Risk Management Plan </li></ul><ul><li>Define it as policy </li></ul><ul><li>Select Risk Champion </li></ul><ul><li>Task people to engage </li></ul><ul><li>Set guidelines and train </li></ul>
    64. 65. <ul><li>Proportionate : to the risk assessed </li></ul><ul><li>Accountable : those affected should be advised how and why decisions are made </li></ul><ul><li>Balanced: between “analysis-paralysis” by over-managing and indecision by not making decisions and taking action </li></ul>
    65. 66. <ul><li>Consistent : interpret policies consistently </li></ul><ul><li>Transparent : open and user-friendly process </li></ul><ul><li>Targeted : treatments focused on problem </li></ul>
    66. 67. Implementation - Best Practices <ul><li>Commitment and support from leaders </li></ul><ul><li>Risk management plan provides roadmap </li></ul><ul><li>Policy statement defines the commitment </li></ul><ul><li>Risk mitigation control system in place </li></ul>
    67. 68. Implementation - Best Practices <ul><li>“Learn by Doing” Training </li></ul><ul><li>Personnel need to know: </li></ul><ul><ul><ul><li>Why risk management is important </li></ul></ul></ul><ul><ul><ul><li>What to do and when </li></ul></ul></ul><ul><ul><ul><li>What is expected of them </li></ul></ul></ul>
    68. 69. Implementation - Best Practices <ul><li>Monitor and assess results frequently, adjust where advisable or necessary </li></ul><ul><li>Communication: make it consistent and frequent to all stakeholders </li></ul>
    69. 70. Monitoring <ul><li>Are the selected risk control and risk financing options achieving their expected results? </li></ul><ul><li>If not, make adjustments where/when needed </li></ul><ul><li>Example: </li></ul><ul><ul><li>Update values in the property insurance policy, they may have changed substantially </li></ul></ul>
    70. 71. Benefits include: <ul><li>Identification of new or changing risks and methods </li></ul><ul><li>to treat them </li></ul><ul><li>Accumulation of evidence to support assumptions and </li></ul><ul><li>results of analysis </li></ul><ul><li>Development of a more accurate portrait of risks </li></ul><ul><li>Reduction of costs associated with improper or </li></ul><ul><li>redundant risk control measures </li></ul>
    71. 72. Operational Recommendations <ul><ul><li>Conduct audit of ongoing operational risks </li></ul></ul><ul><ul><li>Review, design and implement policies/procedures </li></ul></ul><ul><ul><li>Empower and train personnel to address risks </li></ul></ul><ul><ul><li>Ensure Board of Directors receive regular updates </li></ul></ul>
    72. 73. Operational Recommendations <ul><ul><li>Review insurance regularly </li></ul></ul><ul><ul><li>Investigate and keep records on all claims – </li></ul></ul><ul><ul><li>incident reports </li></ul></ul><ul><ul><li>Review all legal agreements to identify their risks </li></ul></ul><ul><ul><li>Use waivers, risk assumptions, disclaimers, </li></ul></ul><ul><ul><li>indemnifications to transfer risk </li></ul></ul>
    73. 74. Operational Recommendations <ul><ul><li>Establish and enforce required risk management </li></ul></ul><ul><ul><li>procedures – before, during and after all </li></ul></ul><ul><ul><li>activities, events or programs </li></ul></ul><ul><ul><li>Ensure contractors have adequate insurance – </li></ul></ul><ul><ul><li>require Certificates of Insurance as proof </li></ul></ul>
    74. 75. <ul><li>Accident-prevention programs are good due diligence: </li></ul><ul><ul><li>They ensure personnel and financial resources are put to their best possible use </li></ul></ul><ul><ul><li>Instead of being diverted to pay for accident-related losses </li></ul></ul>
    75. 76. <ul><ul><li>Early, aggressive detection and management of risk is typically easier, less costly, and less disruptive to implement </li></ul></ul><ul><ul><li>Strong quality-control improves goods, services, activities, reputation and credibility </li></ul></ul><ul><ul><li>Reducing the potential for lawsuits conserves resources – financial and personnel </li></ul></ul>
    76. 77. <ul><ul><li>Quick response to situations/circumstances, if left unattended they can cause devastating affects </li></ul></ul><ul><ul><li>Advance agreements with lenders offers access to cash when its most needed – in a crisis </li></ul></ul><ul><ul><li>Effective contingency planning: service continues following adverse events </li></ul></ul>
    77. 78. <ul><ul><li>Organizations with active risk management plans report: </li></ul></ul><ul><ul><ul><li>Improved relations with clients, volunteers, staff and their communities </li></ul></ul></ul><ul><ul><ul><li>Better planning and preparation </li></ul></ul></ul><ul><ul><ul><li>Stability among employees and volunteers </li></ul></ul></ul><ul><ul><ul><li>Greater credibility in their community </li></ul></ul></ul>
    78. 79. <ul><li>Risk management is never the responsibility of one person - involve others in your efforts </li></ul><ul><li>It is the application of healthy doses of common sense and sound planning </li></ul><ul><li>The simpler the strategy , greater likelihood it will be applied and sustained </li></ul>
    79. 80. <ul><li>Risk management is a process not a task </li></ul><ul><ul><li>Constantly review what you are doing </li></ul></ul><ul><ul><li>Celebrate when things work </li></ul></ul><ul><ul><li>Analyze the reasons behind a setback </li></ul></ul><ul><ul><li>Adjust where and when needed </li></ul></ul>
    80. 81. Don’t Get Overwhelmed <ul><li>Break the process into manageable steps </li></ul><ul><li>Set priorities and realistic goals </li></ul><ul><li>Create a timeline for developing your </li></ul><ul><li>risk management practices </li></ul>
    81. 82. Don’t Get Overwhelmed <ul><li>Don’t attempt to do it all at once </li></ul><ul><li>Connect with other organizations that </li></ul><ul><li>have already gone through this process </li></ul><ul><li>to get support and recommendations </li></ul>
    82. 83. Funding Organizations
    83. 84. Contact Information <ul><li>Don Radford </li></ul><ul><li>Ph: 403-221-7165 Fax: 403-221-7077 </li></ul><ul><li>M/A: 140, 6700 Macleod Trail SE </li></ul><ul><li>Calgary, Alberta T2H 0L3 </li></ul><ul><li>Email: [email_address] </li></ul>
    84. 85. www.volunteeralberta.ab.ca 1 (877) 915 - 6336 T hank You! For more information, resources or training, contact Volunteer Alberta!
    85. 86. Questions?

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