This graph helps depict what can happen to your organizations total cost of risk with a plan or without one. The total cost of risk is not just the cost of your insurance premiums. There are hundreds of direct and indirect costs of risk and also many preventive measures that you can implement to reduce risk. The goal here is to emphasize the importance of having a plan in place.
All organizations need to think about ways to increase efficiencies and reduce costs. But, with the added pressure of less funding and more demands from stakeholders, not for profit organizations have an even greater need today.
We believe that the process begins up front by taking a look at managing your organizations risks from an enterprise point of view. Risk fall into several categories including People, Property and Profits or Cash Flow. These three areas break down into many sub categories that each has its own set of issues to be addressed.
The best way to start and keep it going is to develop a culture of risk management within your organization. It must start from the top down and include many people from different areas of your organization.
Once you have a plan then you can look at different ways to reduce, transfer or even eliminate risk altogether. Insurance is certainly a way to transfer risk, but not always the most economical. There are many thing you can do in your processes to transfer risk at no additional cost. Such as contract review, safety procedures and fleet safety.
A proper plan should address all of the following areas:
- General Liability Exposures
- Professional Liability Exposures
- Driver Screening and Driver Training Programs
- Property Exposures and Hazard Controls
- Establish Employee and Volunteer Screening Procedures
- Establish Safety Committees
- Establish Volunteer Safety Policy
- Event Safety
- Develop Abuse and Molestation Controls
- Safeguarding Computer Systems
- Employee Dishonesty and Theft Controls
- Written Safety Procedures Manual