Managing Insurance & Risk
There are key times when organisations should consider risks, risk management and insurance.
Failure to do so could be enough to have a significant financial impact on the organisation. This is especially pertinent for Not-For-Profits in an era of increasing obligations.
Risks are Dynamic
Justice Connect's Not-for-profit Law program considers that a Not-For-Profit or community organisation should (re)consider its risks:
- When it initially sets up
- When it starts offering services or products, or changes the type of services or products offered
- When it starts employing staff or using volunteers
- When it is hosting or running events
- When it starts using new premises
- When it enters into relationships with other organisations, like partnership agreements or services agreements
- When there are changes to the laws that affect the organisation
- When unexpected incidents have occurred that raise liability issues
- When the organisation's circumstances change
- At least once a year before the organisation's AGM, when the organisation should do a full audit to ensure that risks are identified and addressed, and that insurance cover is still meeting the needs of the organisation.
The Changing Landscape
Voluntary industry codes, together with prudential regulation and enforcement action, have been increasing ever since the findings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (Royal Commission).
The challenges of recent years have made large demands across all industry sectors - and with respect to insurance, they are only adding to an overall picture which is already complicated.
Insurance and Risk
All organisations need to develop some kind of risk-management strategy, which likely will include insurance as well as identified risks and practical steps to reduce them.
Often new insurance needs to be purchased or extended, and there will usually be other steps your organisation can take to alert people of risks and mitigate the likelihood of a risk eventuating. And, while insurance is an important consideration for not-for-profit groups, often it is mandatory under the terms of a lease or a funding agreement.
Common types of Insurance
- Public liability
- Asset and contents insurance
- Insurance for Directors and Officers
- Protection for volunteers
- Coverage for specific event
Meeting Insurance Obligations
Each type of insurance comes with an associated set of duties and obligations for the organisation. These will range from tracking of incidents and complaints, to the creation and maintenance of a risk profile, and the associated duties and controls that will need to be delegated and reported upon.
Ideally, there should be a single centralised solution for all the organisation’s requirements. This will help to avoid data silos and the additional complexity of managing different technologies and data formats.
Pali GRC will Help Mitigate the Risk
Our automated Governance Risk and Compliance framework will help you manage your risk profile by identifying and tracking key issues well before they spiral out of control.
- Easy to keep up to date as requirements change.
- Simple to define and delegate plans and processes.
- Low levels of training required.
- Built with bulletproof technology.
- Complaints preparedness and tracking.
- Real-time reporting.
Please contact us to find out more and arrange a demonstration.
Insurers will only write premiums where they think they will gain a profit and in this sector insurers have been losing millions of dollars to cover past claims. We’ve seen this sort of crisis in home building warranty, where all private insurers withdrew and now almost two decades later the state government is still having to provide insurance.
MP David Shoebridge
Pali GRC simplifies your governance, risk and compliance (GRC) activities and saves you precious time and money, and ensures standards and consistency across the enterprise
ProbityPro manages the complete probity and procurement cycle, with the flexibility needed to accommodate an organisation's nomenclature, procurement processes and governance, workflows and more.