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 or financial wealth. Ø The types of risk facing nonprofits typically include: financial, operational, professional liability, statutory liability, and reputation
SOURCES OF RISK Sources of Risks Internal External
Legal structure & tax status Unincorporated association Company 501(c)(4) and limited by 501(c)(3) guarantee
Finance & Operation Internal Controls Assure integrity of Written policy financial assets Systems of Clear role check and definition balances
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? Protect your volunteers Secure online registration and payment What is PCI- DSS?
Other risks Succession • Train your officers planning • Sudden death or illness • Handover each biennium Archives • Document procedure Password • Keep passwords safe protection • Change password frequently • False applications Awards • Discrimination
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? • IDENTIFY RISK 1 • ASSESS RISK 2 • MAKE A RISK MATRIX 3 • ACTION PLAN 4 • MONITOR 5
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 I M P A C T Very low Low Medium High Very high LIKELIHOOD Very high High Medium Low Very low 15
Assessment • Likelihood = Very Low (VL) • Impact = Medium (M) based on COMPLAINT POSSIBLE • Result = GREEN
District 5 Risk Matrix Zontz District 5 Risk Management Assessment 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
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