Transcription of Nonprofit Risk Management Basics SEPTEMBER 2010.ppt …
1 1 Nonprofit Risk Management BasicsPresented by:Melanie Lockwood is Risk? Risk a measure of the possibilitythat the future may be different from what you expect. possibility + consequencesKey Areas of Exposure for NonprofitsInsurableexposures include: Slips, trips and falls Automobile accidents, with damage to property and/or Fire, flood, windstorm causing damage to or destruction of property Lawsuits alleging negligence in the delivery of professional services Lawsuits alleging wrongful employment practicesKey Areas of Exposure for Nonprofits Uninsurable(or hard to insure) exposures include:L f k Loss of one or more key funding sources Scandal alleging impropriety Failing to meet client or volunteer expectationsUninsurable exposures also include: Board apathy, disinterest Loss of key personnel (paid and volunteer) Leadership deficit in the Nonprofit sector Turnover varies by industry Discontent at the board or staff level Lack of employee productivity ( , cyberslacking ) Business disparagement by volunteers, employees, donors, participants, visitors Risk PerceptionWhat influences our view of risk?
2 Representativeness , brand name Anchoring first impressions say a lot! our ability to evaluate safety/exposure may be tainted by early experience (good or bad) Voluntariness choice to participate Knowledgeand familiarity is it a familiar exposure? Have we weathered this storm before? Do we have navigational instruments?2 What is Risk Management ? A planning discipline 80% - planning for performance 20% -planning for planning for trouble A discipline for dealing with uncertaintyPredicting vs. Anticipating the Future Predicting the future is about creating and presenting one view of how the future will unfold. Anticipating and preparing for the futureis about looking at multiple views of how the future might unfold. Randy Park, The Prediction Deadly Sins1. Stepping over the banana others have others have your Nonprofit s interests at heart3.
3 Operating as if insurance will take care of riskSeven Deadly Signing a contract you haven t read!35. Acting as if screened volunteers will do no harmSeven Deadly without taking action7. Sending mixed signals1. Be clear and conciseSeven Deadly Ask/invite tough questions3. Try the simple approach first Be Simpleminded Jeff BezosSeven Deadly Put people first5. Learn from experience your own and others Carefully examine incidents, claims, losses, misstepsSeven Deadly changes should be considered? What went wrong? Don t make the same mistake twice6. Anticipate the future7. Seek help!Resources Practical resources from the Nonprofit Risk Risk Management Center Books, Web Publications is Tools Modular, easy to use tool for creating a custom risk a custom risk Management plan Members pay $79 instead of $ Risk Management plan To purchase a license to My Risk Management plan , call Sue Weir Jones @ 202-785-3891 or write @ 202-785-3891 or write to: the policy language you on Module Name for an for our weekly you!
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