CalNonprofits Insurance Services

Risk is the chance of loss.  A severe loss to your organization can cause injuries to people, damage of property, and damage to reputation.  This can result in substantial business interruption and monetary loss.  Sometimes people think of gambling when they think of risk. However, with gambling there is the chance of gain as well as loss.  Risk management is the process of identifying and handling the risks faced by your organization. By actively engaging in this process you can become a Risk Management Superhero for your nonprofit!   

You should care about risk management because it can ensure the safety of your staff and the people you serve as well as the sustainability and reputation of your organization. It would be terrible to permanently close some or all your  operations  because there was no plan in place for dealing with risks we all face.  The risk management plan gives staff a blueprint for handling the risks and “bakes in” the idea of risk management for the entire team.  Risk management should be connected to your mission. By managing risks appropriately, you can make sure your organization survives to continue your mission and the valuable services you provide.    

Risk Management Process

There are 5 steps to the risk management process –  

  • Identify risks.  There are many ways to go about identifying the risks your operations and organization face.  Use as many brains as possible – everyone has a different point of view and may find additional risks.  Checklists and other tools can help in the identification process. Review contracts for risks the organization has accepted. 
  • Analyze and rank risks. Analyze the identified risks for impact severity and potential frequency.  Each identified risk should be analyzed and assessed for impact and prioritized. 
  • Evaluate options for handling each risk based on the potential severity and frequency.  The major methods for handling risks include
    • Avoid – eliminate or stop the activity (high impact/cost, low reward).
    • Reduce – take steps to minimize the risk such as safety equipment, modifications to processes. 
    • Transfer/Share – Transfer the risk to another party – this is usually done via a contract.  Insurance is a contract and one that transfers risks from the organization to the insurance company.   
    • Retain – do nothing – you accept the risk (low impact, low potential cost) – make a plan to pay for the risks you retain! 
  • Implement Plan – Implement the controls identified above, purchase insurance, enter into contracts, implement safety controls, and train staff.  
  • Review and Evaluate – Risk management is a continuous process and must be reviewed, evaluated, and adjusted for effectiveness periodically. Each new program should be taken through the risk management process.  

Business Continuity Plan

Business Continuity Plan (BCP) is the documented risk management plan for ensuring the continuance of operations in the event of a disaster.  The plan should document the steps that individuals need to take depending on the type of disaster and shut down. The process to create the BCP is similar to the larger risk management plan –  

  • Identify the types of interruption or shut down 
  • Analyze the functions and how you can recover
  • Explore strategies for handling and examine gaps in capabilities 
  • Develop the Plan 
  • Test and review periodically – since the plan is for future shutdowns it should be tested periodically and reviewed for changes. 

Resources 

Most of our carriers have risk management resources available that are specific to nonprofits.  In addition, we are an affiliate of the Nonprofit Risk Management Center.  We offer their discounted online Risk Management Planning Tool that will walk you through the steps of creating a risk management plan for your organization. CalNonprofits Insurance Services is providing sponsored registration for the upcoming 2020 Virtual Risk Summit so that our clients can attend at no cost to them. Contact us today to assist with building your risk management plan!   

References

CalNonprofits Insurance Services Risk Management

Managing Risk for a Successful Nonprofit Organization

No Business Continuity Plan? Take These 4 Steps

Vector image by VectorStock / vectorstock

Our new insurance programs exclusively for CAM members provide protection for your mission with coverage tailored for the risks unique to museums. We are at the California Association of Museums Conference – CAM2020, March 5 – 6, where we will have information about these exclusive programs. Stop by our exhibitor booth if you are attending the conference!

brown eye

Regular vision exams from an eye doctor is an excellent wellness strategy!   In fact, regular eye exams can lead to early detection of many preventable diseases. The retina is the only place in the body where the doctor can view your blood vessels directly. This allows for early detection of a multitude of diseases including, cancer, high blood pressure, glaucoma, and diabetes. Did you know, concussions can be detected through an eye exam?

Benefits of Offering a Group Vision Plan

Offering a group vision plan is inexpensive and encourages regular eye exams even for those that have 20/20 vision. The average person is 4 times more likely to get an eye exam than to get an annual physical. According to EyeMed, health issues may cost employers an average of $1,685 per employee each year. Early detection of serious conditions may be a key factor in reducing these costs for nonprofit employers.

Retinal Imaging

Retinal imaging is a relatively new technique for examining eye health. More importantly, it is being used for early detection of diseases.  In addition, It is a way to detect changes over time to your eyes and their health. Our exclusive VSP vision plans in the Nonprofit Benefits Trust cover retinal imaging at a low $20 copay. Many other vision plans may include this benefit as well.  

Blue Light Exposure

Blue Light Exposure is another serious issue for our eye health for the reason that it causes strain and damage to the eyes. Viewing screens, LED lighting, and the sun are all sources of blue light. As a result, many eye experts recommend blue light blocking glasses even if you do not require vision correction.   We should also protect our children’s eyes now before all the screen time damages their vision.  Our exclusive Nonprofit Benefits Trust plans offer blue light blockers at a highly discounted rate.  

Consider Vision Insurance

For these reasons, we encourage you to consider Vision Insurance as part of your employee benefits package. Communicate to employees the importance of vision benefits and annual exams as part of a wellness program. Vision insurance can be offered as an employer paid group plan or as a voluntary plan where employees pay premiums. We can help you educate your employees on eye health and craft a vision insurance plan to suit your budget.   Contact us at 888-427-5224 or info@cal-insurance.org.

By Colleen Lazanich

References:

Concussion Detection – vsp.com

Healthy Heart – Healthy Eyes – article on vsp.comBlue Light Infographic by VSP

EyeMed Healthy Eyes Brochure

Eye Med Vision from a Better Angle whitepaper