By Susan H. Davenport
The article, It’s Never Too Late to Begin Anew, was published by Melanie L.
Herman in Risk Management Essentials, 2007 Risk Management Resolutions, Volume
16, No. 1, Jan/Feb 2007 edition. The article is focused on improving the good health of a
nonprofit organization and increasing the odds that the organization will be successful in
advancing the organization’s mission. There are three risks identified and mitigated
for the organization in this report. The risks presented in the article are: 1) the insurance
vendor is not a partner, 2) a risk report is not a part of the Board’s agenda, and 3) the
policies for the charitable organization are out of sync. The risk mitigation plan is
discussed below for each risk identified.
The first risk mitigation plan is: Turn the Insurance Vendor into a Partner.
This solution refers to an insurance professional and should be a valued business partner
who can help the staff and board appreciate current and emerging risks and exposures,
alert the organization’s key personnel to appropriate safety and risk management
measures, shop for the most comprehensive coverage at an afford price, advise leaders
about the need for high limits or additional lines of coverage, serve as an effective
advocate and advisor when the organization files a claim, and assists the leaders of the
organization in understanding the nature and details of the insurance program since
precious resources have been spent.
The second risk mitigation plan is: Get the Board on Board: Add a Risk
Report to the Board’s Agenda. The boards of registered charities in the United Kingdom
are required to understand and review the major risks facing their organizations. There
must also be a system in place to manage the risks. Strategies for bringing the topic of
risk to the board’s attention include adding a...