An organization concerned about the risk of using unsafe drivers may add DMV record checks to its screening process, or an annual road test for all drivers. An organization concerned about the lack of male and female chaperones for an overnight camping trip may decide to host a day-long hike and picnic instead. There are two ways to retain risk. The first is by design. A nonprofit may decide that other available techniques aren't suitable and it will therefore retain the risk of harm or loss.
Nonprofits make conscious decisions to retain risk every day.
This can be a rational and appropriate approach to managing risk. Where organizations get into trouble is when risk is retained unintentionally. The unintentional retention of risk can be the result of failing to understand the exclusions of an insurance policy, insufficient understanding of the scope of risk an organization faces or simply because no one has taken the time to consider the risk and how it can be addressed. Sharing - Risk sharing involves sharing risk with another organization through a contract. Now that you've seen the process and techniques, let's begin looking at some risk management steps, starting with risks to people and good will .