RISK MANAGEMENT NUTS & BOLTS

RISK MANAGEMENT FOR THE REST OF US

RISK MANAGEMENT NUTS & BOLTSALISON JONES-NASSAR, CVAJUNE 13, 2013RISK MANAGEMENT NUTS & BOLTSThe problem is that the work of many nonprofit organizations, and specifically the assignments of greatest importance for volunteers, are often inherently riskyIn truth, the person who asks, will I get sued? when considering whether to give out blankets at midnight to homeless people on the street is probably the wrong volunteer candidate. Susan J. Ellis, Volunteering Is Inherently Risky, Nonprofit Times, 1996RISK MANAGEMENT NUTS & BOLTSWhat are some of the risks?MIGHT BE EXPOSED TO COMMUNICABLE DISEASEMIGHT BE PHYSICALLY ASSAULTEDBELONGINGS STOLENALL BLANKETS MIGHT GET DAMAGED OR STOLENMIGHT BE VERBALLY HARRASSED OR THREATENEDMIGHT INADVERTENTLY GIVE OUT PERSONAL INFOUNPREPARED FOR ERRATIC BEHAVIOR

Size & structure of organizationRisks affecting different constituentsVulnerability of service recipientsSpectrum of service opportunitiesInsurance, HR, & Compliance standardsPractices of other organizations with similar affiliationControlled vs. uncontrolled factorsRisk management is a continuous process!

RISK MANAGEMENT NUTS & BOLTSFactors to consider:RISK MANAGEMENT NUTS & BOLTSTwo-Pronged Approach:APPLYING EVERYDAY VOLUNTEER MGMT BEST PRACTICES APPLYING THE RISK MANAGEMENTPROCESSPOSITION DESCRIPTIONS APPLICATION PROCESSORIENTATION & TRAININGPOLICY MANUALDOCUMENTATIONONGOING COMMUNICATIONTRACKING SYSTEMFOR EACH OPPORTUNITY FOR EACH CONSTITUENCYWHAT ARE THE RISKS?RATE THE LIKELIHOODRATE THE SEVERITYWHAT ACTIONS?HOW COSTLY?RISK MANAGEMENT NUTS & BOLTSFirst Prong:APPLYING EVERYDAY VOLUNTEER MGMT BEST PRACTICES POSITION DESCRIPTIONSSERVICE GOALSDUTIES & RESPONSIBILITIESLOCATION & SCHEDULEDURATION OF COMMITMENTREQUIRED/PREFERRED SKILLSREQUIRED TRAININGREQUIRED DOCUMENTATIONSUPERVISORBENEFITSRISK MANAGEMENT NUTS & BOLTSFirst Prong:APPLYING EVERYDAY VOLUNTEER MGMT BEST PRACTICES APPLICATIONPROCESSTRANSPARENT PROCESS:ORIENTATIONAPPLICATIONPERSONAL INTERVIEWREFERENCE CHECKSBACKGROUND CHECKSTRAININGDOCUMENTSPROBATIONARY PERIODRISK MANAGEMENT NUTS & BOLTS First Prong:APPLYING EVERYDAY VOLUNTEER MGMT BEST PRACTICES ORIENTATION & TRAININGKNOWLEDGE, SKILLS, ATTITUDESEXPECTATIONS: WHAT & WHYEXPLICIT DIRECTIONS (DO)SPECIFIC VIOLATIONS (DONT)CONSEQUENCESRULES OF CONDUCTSYSTEM FOR TERMINATIONPREPARATION FOR SPECIFIC SCENARIOSRISK MANAGEMENT NUTS & BOLTS First Prong:APPLYING EVERYDAY VOLUNTEER MGMT BEST PRACTICES POLICY MANUALMISSION, VALUES, HISTORYDESCRIPTION OF SERVICESSCREENING PROCESSOUTCOMES, EXPECTATIONSOPERATIONAL POLICIESEMERGENCY PROCEDURESCODE OF CONDUCTREASSIGN/TERMINATE WAIVERGRIEVANCE POLICYACKNOWLEDGMENT OF RCPTRISK MANAGEMENT NUTS & BOLTS First Prong:APPLYING EVERYDAY VOLUNTEER MGMT BEST PRACTICES DOCUMENTATIONPERMISSION TO VERIFY INFOLIABILITY RELEASECONFIDENTIALITY AGREEMENTEMERGENCY CONTACT INFOPERSONAL REFERENCESBACKGROUND CHECKDRIVING RECORDDRUG TESTCONDUCT AGREEMENTSRISK MANAGEMENT NUTS & BOLTS First Prong:APPLYING EVERYDAY VOLUNTEER MGMT BEST PRACTICES EVALUATION & COMMUNICATIONROUTINE FOR CHECKING INON-SITE VS. OFF-SITEACTIVE LISTENINGCOACHING STRATEGIESCORRECTIVE FEEDBACKPERFORMANCE EVALUATIONSINCIDENTS & COMPLAINTSRISK MANAGEMENT NUTS & BOLTS First Prong:APPLYING EVERYDAY VOLUNTEER MGMT BEST PRACTICES TRACKING & RECORDSAPPLICATION & DOCUMENTSTRAINING CONTRACTSSIGN-IN LOGSHOURS DOCUMENTATIONINCIDENT REPORTSPERFORMANCE REVIEWSANNUAL RECERTIFICATIONSRISK MANAGEMENT NUTS & BOLTSHow much can be managed with best practices?MIGHT BE EXPOSED TO COMMUNICABLE DISEASEMIGHT BE PHYSICALLY ASSAULTEDBELONGINGS STOLENALL BLANKETS MIGHT GET DAMAGED OR STOLENMIGHT BE VERBALLY HARRASSED OR THREATENEDMIGHT INADVERTENTLY GIVE OUT PERSONAL INFOUNPREPARED FOR ERRATIC BEHAVIOR

RISK MANAGEMENT NUTS & BOLTS Second Prong:APPLYING THE RISK MANAGEMENTPROCESSFOR EACH OPPORTUNITYMATRIX OF OPPORTUNITIES:LEVEL OF RESPONSIBILITYLEVEL OF CLIENT INTERACTIONLEVEL OF INVESTIGATIONLEVEL OF SKILLLEVEL OF TRAININGLEVEL OF SUPERVISIONLEVEL OF RISK ASSUMPTIONRISK MANAGEMENT NUTS & BOLTS Second Prong:APPLYING THE RISK MANAGEMENTPROCESSFOR EACH CONSTITUENCYORGANIZATIONSTAFFBOARDVOLUNTEERSCLIENTSCOMMUNITYPROFESSIONCAUSE OTHERRISK MANAGEMENT NUTS & BOLTS Second Prong:APPLYING THE RISK MANAGEMENTPROCESSWHAT ARE THE RISKS?PHYSICAL HARMEMOTIONAL TRAUMAHUMAN RIGHTS VIOLATIONSCREDIBILITY & TRUSTREPUTATIONMEDIA & PUBLIC RELATIONSLIABILITY & LITIGATIONLICENSING/ACCREDITATIONRISK MANAGEMENT NUTS & BOLTS Second Prong:APPLYING THE RISK MANAGEMENTPROCESSRATE THE LIKELIHOOD1 = NOT AT ALL LIKELY5 = VERY LIKELY/CERTAINCOMBINE WITH SEVERITY RATINGEXAMPLE: DRUNKENNESSVERY LIKELY BUT DAMAGE TO CONSTITUENT/PROGRAM/ORGANIZATION MINIMAL (SEVERITY)RISK MANAGEMENT NUTS & BOLTS Second Prong:APPLYING THE RISK MANAGEMENTPROCESSRATE THE SEVERITY1 = NOT AT ALL SEVERE5 = VERY SEVERECOMBINE WITH LIKELIHOOD RATINGEXAMPLE: PHYSICAL ASSAULTVERY UNLIKELY BUT DAMAGE TO CONSTITUENT/PROGRAM/ORGANIZATION WOULD BE DEVASTATING (SEVERITY)RISK MANAGEMENT NUTS & BOLTS Second Prong:APPLYING THE RISK MANAGEMENTPROCESSWHAT ACTIONS?DEVELOP ADDITIONAL TRAINING, OPPORTUNITIES FOR ROLE PLAYPROVIDE SCRIPTED LANGUAGESELF-DEFENSE INSTRUCTIONFIRST-AID REQUIREMENTSEMERGENCY PROTECTION PHOTO DOCUMENTATIONPOLICE PRESENCERISK MANAGEMENT NUTS & BOLTS Second Prong:APPLYING THE RISK MANAGEMENTPROCESSHOW COSTLY?COST OF ADDITIONAL TRAININGDIFFICULTY OF REQUIRING ADDITIONAL TRAININGCOST OF FIRST-AID INSTRUCTORSCOST OF PROTECTION TOOLSCOST OF POLICE PROTECTIONEMOTIONAL RESISTANCERISK MANAGEMENT NUTS & BOLTS Two-Pronged Approach:POSITION DESCRIPTIONS APPLICATION PROCESSORIENTATION & TRAININGPOLICY MANUALDOCUMENTATIONONGOING COMMUNICATIONTRACKING SYSTEMFOR EACH OPPORTUNITY FOR EACH CONSTITUENCYWHAT ARE THE RISKS?RATE THE LIKELIHOODRATE THE SEVERITYWHAT ACTIONS?HOW COSTLY?BEST PRACTICESRISK MGMT

Apply liberal doses of common senseInvolve your volunteersProvide explicit directionPraise & punishDont assumeRISK MANAGEMENT NUTS & BOLTSTen Strategies For Managing Risk:

Establish policies and follow throughEmpower the board to meet its legal obligationsProvide guidance on privacy issuesUse written agreements to spell out requirementsMake risk management everyones responsibility RISK MANAGEMENT NUTS & BOLTSTen Strategies For Managing Risk:

Select ONE service opportunity that your program offersIdentify 3-5 risks associated with this opportunityHow do you address these risks in your everyday practices?Rate the likelihood (scale of 1-5)Rate the severity (scale of 1-5)What additional actions can/should be taken?Are there cost/complexity factors?

RISK MANAGEMENT NUTS & BOLTSExercise:Checklist: Are Volunteers Included in Our Legal & Risk Planning? From Leading the Way for Successful Volunteer Involvement by Betty StallingsIdentify three actions you can implement immediatelyIdentify three actions you can implement within 60 days Identify three actions you would like to implement within this calendar year

RISK MANAGEMENT NUTS & BOLTSExercise:No Surprises: Harmonizing Risk & Reward in Volunteer Management, 4th Edition, Nonprofit Risk Management Center, www.nonprofitrisk.org Volunteer Management, 3rd Edition, Steve McCurley & Rick LynchLeading the Way to Successful Volunteer Involvement, Betty Stallings with Susan J. EllisComplete Idiots Guide to Recruiting & Managing Volunteers, John L. LippVisionary Leadership in Volunteer Programs, Marlene WilsonRISK MANAGEMENT NUTS & BOLTSResources:Volunteering Is Inherently Risky, Susan J. Ellis, Nonprofit Times, http://www.energizeinc.com/art/nprisk.html Federal Law Protects Nonprofit Volunteers, Don Kramer, Energize Inc. archive, http://www.energizeinc.com/art/ifed.html Reference Checks, John Patterson, Energize Inc. archive, http://www.energizeinc.com/art/astaf.html Volunteer Screening, Charles Tremper & Gwynne Kostin, Energize Inc. archive, http://www.energizeinc.com/art/anos.htmlRunning the Risk? A Risk Management Tool for Volunteer Involving Organizations, Energize Inc. archive, http://www.energizeinc.com/art/subj/risk.html

RISK MANAGEMENT NUTS & BOLTSResources:RISK MANAGEMENT NUTS & BOLTSEvery organization must grapple with its own tolerance for risk. Just be sure that fear of liability does not lead to narrow and confined roles for volunteers...Practice conscientious management and then be willing to defend your activities passionately should someone decide to take you to court. What you gain by accepting some risk is as great as what you lose by avoiding it. Susan J. Ellis, Volunteering Is Inherently Risky, Nonprofit Times, 1996