The dynamic nature of your organization requires that the risk management committee revisit its strategies at least annually. The committee should evaluate the risk management plan to ensure its continued relevancy, comprehensiveness, and effectiveness. Having a risk management committee that meets periodically can help ensure that the issue of risk management receives ongoing attention. The risk management committee also needs to evaluate the strategies it sets up. The role of insurance 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. A Practical Guide to Risk Management for Nonprofit Organizations, Jackson, Peggy M., White, Leslie T., and Herman, Melanie L., Nonprofit Risk Management Center, Washington, 1997. The Workbook, Jackson, Peggy M., White, Leslie T., and Herman, Melanie L., Nonprofit Risk Management Center, Washington, 1997. Controlling Risks in Volunteer Programs, Tremper, Charles and Kostin, Gwynne, Nonprofit Risk Management Center, Washington, 1993.