Assign responsibility for the risk management plan. The second step is to designate an individual or team responsible for developing and implementing your organization's risk management program. While the team is principally responsible for the risk management plan, a successful program requires the integration of risk management within all levels of your organization. Operations staff and board members should assist the risk management committee in identifying risks and developing suitable loss control and intervention strategies. For most nonprofits, insurance is a valuable risk financing tool.
Few agencies have the reserves or funds necessary for complete self insurance of their exposures.
Purchasing insurance, however, is not synonymous with risk management. In the nonprofit sector, practicing risk management is living the commitment to prevent harm. In addition, risk management addresses many risks that are not insurable - such as, the potential loss of tax exempt status, public goodwill, and continuing donor support. Nonprofit Risk Management Center.