Risk Management for districts and clubs Britt Gustawsson February - - PowerPoint PPT Presentation

Risk Management for districts and clubs

Britt Gustawsson February 2015

What is Risk Management?

2

What is a risk?

Ø A risk is the potential of losing something that you have such as physical health, social status

• r financial wealth.

Ø The types of risk facing nonprofits typically include: financial, operational, professional liability, statutory liability, and reputation

SOURCES OF RISK

Sources

• f Risks

Internal External

Legal structure & tax status

Unincorporated association 501(c)(4) and 501(c)(3) Company limited by guarantee

Finance & Operation

Internal Controls Written policy Clear role definition Systems of check and balances Assure integrity of financial assets

Internal control

• Regular and frequent financial reports
• Keep valuables safe
• Two signatures on bank account
• 2-3 signatures on contracts
• Define roles and responsibilities
• Reconcile bank accounts monthly
• Check conflict of interest
• Give your auditors everything they need
• Write it all down in a manual

Social media

A blessing or a curse?

Social media policy

District conference

Who signs the contracts? Secure online registration and payment What is PCI- DSS? Protect your volunteers

Other risks

• Train your officers
• Sudden death or illness

Succession planning

• Handover each biennium
• Document procedure

Archives

• Keep passwords safe
• Change password frequently

Password protection

• False applications
• Discrimination

Awards

Liability & Insurance

Ø General Liability Insurance - protects from

injury or damage arising from Zonta district or club activity. Ø All North American members covered and paying additional member fee of $3 to cover the cost Ø Clubs and districts in rest of the world should consider such cover in connection with events. Ø Directors & Officers Liability Insurance – protects the directors and officers

Insurance - other

Event cancellation

What do we do?

1

• IDENTIFY RISK

2

• ASSESS RISK

3

• MAKE A RISK MATRIX

4

• ACTION PLAN

5

• MONITOR

How do we do it?

• Nominate somebody responsible
• Appoint a person to deal with each

identified risk = risk owner

• Do this analysis annually
• Document the result
• Document procedures

Risk Matrix

15

LIKELIHOOD

I M P A C T

Very low Low Medium High Very high Very high High Medium Low Very low

Assessment

• Likelihood = Very Low (VL)
• Impact = Medium (M) based on

COMPLAINT POSSIBLE

• Result = GREEN

District 5 Risk Matrix

Likelihood Impact Result Action Legal Structure Legally Incorporated Very Low Very Low None Tax Status Very Low Very Low None Finance & Operation Regular & Frequent Financial Reporting Very Low Med None Keep Valuable Safe Low Med None Two Signatures on Bank Account Very Low High None Two-Three Signatures on Contracts High High Resolve Define Roles and Responsibilities Low Low None Reconcile Bank Accounts Monthly Very Low Medium None Conflict of Interest Very Low Medium None Give Auditors everything they need Very Low Low None Operating Manual Low Medium None Social Media Sharing News Med Med Discussion Zonta Brand Low Med None Zonta Logo Med Med Discussion District Conference Two-Three Signatures on Contract High High Resolve Dispute Resolution Clause Med Med Discussion Handling Registration Fees Med Med Discussion Handling Credit Cards Low Low None Other Risks Succession Planning Low Low None Archiving Very Low Very Low None Passwords Low Med None Insurance Liability Insurance Very Low Very Low None D&O Insurance Med Med Discussion Event Cancellataion Insurance Low Low None

Zontz District 5 Risk Management

Assessment