Nonprofit Insurance & Risk Management

Uncertainty & Loss

Two words that are sure to strike dread into even the heartiest organizations are uncertainty and loss. Within the context of risk management, you can think of uncertainty as a lack of knowledge that is unable to be obtained. This can be frightening, however, proper risk management and insurance advisory can make even the most uncertain situation manageable.

An example of a common uncertainty in nonprofit organizations can be evaluating directors. Will retaining the director or searching for more qualified candidates yield better results? Will a new director fit the existing system or could they bring new unexpected complications? How are you quantifying and qualifying the answers to these questions?

Nonprofit Leaders

Leaders must be prepared to make decisions with a degree of uncertainty. You can do this confidently while implementing risk management protocols to mitigate the exposure to loss. In our prior example, conducting interviews, following up with references and establishing strict quality control metrics for  a director are all basic steps a nonprofit can take to help limit their exposure. What about considering more advanced tactics however, such as probationary periods, mentor programs and proper D&O insurance to mitigate the loss exposure associated with a change of guard.

Loss Of Assets

Offering a unique set of challenges from uncertainty, loss is the damage or destruction of an asset utilized by a nonprofit that would otherwise further their mission. Assets in a non-profit organization generally fall into four prime categories: property, people, income and reputation. Loss of your assets can either be gradual, such as a reduction of funding over a few years, or sudden, like the loss of reputation due to a swarm of malicious tweets.

Nonprofit Prime

Regardless of the circumstances or uncertainty surround a loss, it is a nonprofit’s duty to prepare for these challenges and assure the continuity of their mission.  Both uncertainty and loss are pivotal conversations that every organization should be having with their risk management adviser.

At ZRM, our Nonprofit Prime program is designed to specifically combat these unsettling exposures. We target essential topics concerning loss and uncertainty which include:

• Property Risks
• Income Risks
• Liability Risks
• People Risks
• Governance / Fiduciary Risks
• Collaboration Risks
• Mission & Reputation Risks

While it isn’t possible to remove the uncertainty of risk, working with an adviser at ZRM can help you to confidently address and mitigate exposures.

Ask us about how Nonprofit Prime can help your organization today without any costs beyond your insurance premiums: https://zrm brokerage.com/nonprofit-prime/