Nonprofit risk management is an essential component to any successful organization. Depending on the type of organization your clients run, there are various risk exposures that they are likely to face. However, proper acknowledgment and assessment of such risks can ensure their longevity. As we take a closer look at how to properly assess and manage risks, ensure your clients are secured with a customized, iron-clad Nonprofit Professional Liability insurance policy.
The most common exposures for any nonprofit organization are critical risks, insurance risks, and routine risks. Critical risks include those that have a high probability of critical impact on the organization and requires management to resolve the issue swiftly. Insurance Risks are those risks that are not likely to occur, but if they did, could have severe penalties. Routine risks are those that don’t pose a significant threat to a nonprofit and are often characterized by human error and faulty procedures. If the potential occurrence of any risk is not likely to impact the business, they are deemed as low importance.
According to Know How Nonprofit, high probability risks might occur every one to two years, medium probability risks might occur once every three to five years, and low probability risks might occur less frequently than once in five years.
If a high-impact risk occurs, it could potentially shut the business down- either temporarily or permanently. For this reason, all procedures and actions should be assessed to determine how they could affect the business.
Eliminating risk in the workplace and in the field is your clients’ first line of defense. In addition, carrying the right insurance policies can defend their operations. As no organization is immune to exposures, insurance solutions can provide the necessary financial assistance in the event they face a claim. Furthermore, don’t underestimate seemingly inherent risks as they can potentially turn into something more ominous later on.
At Domenick & Associates, we have a unique understanding of the nonprofit sector and how to properly secure your clients’ operation. From professional coverage to volunteer solutions, we offer a range of products that are necessary for their success. For more information about our products, contact our experts today at (855) 745-3636.