A risk is any uncertainty about a future event that threatens your organization’s ability to accomplish its mission. Risks have four categories, people, property, income and goodwill. To deal with the possibility of risks your nonprofit should have a risk management plan. First you need to think about all of the possible risks, to do that, ask yourself these three questions:
If you are a small nonprofit you should screen volunteers, check motor vehicle records for all staff and volunteers, develop board of directors orientation and training materials, coordinate the development and consistent use of employment practices, and negotiating the availability of bank credit and purchasing property and liability insurance. If you are a large nonprofit you will usually have your own risk management team. This plan should be read and revised regularly to keep up with the risks. Insurance is also great risk financing tool, it is critical that you read your insurance policy and coverage’s so your risks are being properly covered.
For a detailed plan on how to properly choose and insurance agent and policy that is best for you, visit the Nonprofit research center at www.insureanonprofit.com/research-center.