1. Managing Risk in Uncertain Times
Presented by Peter Andrew
CEO
Council Services Plus
A subsidiary of NYCON

2. What is Risk? A situation involving exposure to danger, harm or loss
Uncertainty that you are willing to take to realize an opportunity or gain

3. Calculated Risk
Taking the chance of exposure to risks after its advantages & disadvantages have been carefully weighed and considered

4. What is Risk Management?
A discipline for dealing with uncertainty
Involves understanding, analyzing & addressing risk to make sure organizations achieve their objectives.
Must be proportionate to the type & complexity of the nonprofit & resources involved.  ?

5. What is Risk Management?
A “system” for making informed choices
A model for responding to events

6. Fidicuary Risk Management
The risk that may be responsible for a trustee or other fiduciary not performing their duties or achieving the best value with relation to the best of the beneficiary's interests

7. Risk Management is helpful because it can...
reduce the likelihood of injuries
minimize the adverse effects of losses
demonstrate diligence

8. The Risk Management Process
1. Establish the context
risk averse?
available resources, including time
overall strengths, weaknesses and threats

9. The Risk Management Process
2. Identify risk
what is it we don’t expect to occur?
3. Evaluate and prioritize risk
frequency
severity

10. The Risk Management Process
4. Decide how to control your risks
choose practical strategies
consider available “tools”
avoidance
modification
sharing
retention

11. The Risk Management Process
5. Monitor and update the risk management program as needed

13. Who’s on first? Fully-staffed RM function
All volunteer risk management committee
Hybrid approach

14. Risk Management Committees
Responsibilities
identify exposures (risks)
develop risk control program
establish risk financing strategy
Composition
staff
volunteer
outside professionals

15. Risk Management Frameworks
Functional categories
Assets at stake
Three questions

16. Common Risks Facing Nonprofits
Client injury
Volunteer injury

17. Common Risks Facing Nonprofits
Allegations of wrongdoing
Loss of core funding

18. Common Risks Facing Nonprofits
Alleged wrongful employment practices
Funder discontent

19. Common Risks Facing Nonprofits
Board member discontent
Volunteer recruitment challenge

20. What Strategies Work and Why?
Apply liberal doses of common sense
Involve your volunteers

21. What Strategies Work and Why?
Provide explicit direction
Praise and punish

22. What Strategies Work and Why?
Don’t assume
Establish policies and follow through
Provide guidance on privacy issues

23. What Strategies Work and Why?
Use written agreements to spell out requirements

24. What Strategies Work and Why?
Make risk management everyone’s responsibility

25. What Strategies Work and Why?
Consider insurance in context

26. Insurance The nonprofit’s policies
CGL
D&O
Auto liability
Professional liability
Are volunteers “insureds” under these policies?

27. Insurance Volunteer liability policy
may be packaged with an accident policy
personal liability coverage
claims arising out of volunteer’s duties
exclusions: professional services or property damage (property in CCC of volunteer)

28. The Changing Marketplace
Review your policies
Review your partnerships
Understand your loss experience, appetite for risk
Don’t delay