RISK MANAGEMENT NUTS & BOLTS

ALISON JONES-NASSAR, CVAJUNE 13, 2013

RISK MANAGEMENT NUTS & BOLTS

“The problem is that the work of many nonprofit organizations, and specifically the assignments of greatest importance for volunteers, are often inherently risky…In truth, the person who asks, ‘will I get sued?’ when considering whether to give out blankets at midnight to homeless people on the street is probably the wrong volunteer candidate.” Susan J. Ellis, Volunteering Is Inherently Risky, Nonprofit Times, 1996

RISK MANAGEMENT NUTS & BOLTSWhat are some of the risks?

MIGHT BE EXPOSED TO

COMMUNICABLE DISEASE

MIGHT BE PHYSICALLY ASSAULTED

BELONGINGS STOLEN

ALL BLANKETS MIGHT GET

DAMAGED OR STOLEN

MIGHT BE VERBALLY

HARRASSED OR THREATENED

MIGHT INADVERTENTLY GIVE OUT

PERSONAL INFO

UNPREPARED FOR

ERRATIC BEHAVIOR

Size & structure of organizationRisks affecting different constituentsVulnerability of service recipientsSpectrum of service opportunitiesInsurance, HR, & Compliance standardsPractices of other organizations with similar

affiliationControlled vs. uncontrolled factorsRisk management is a continuous process!

RISK MANAGEMENT NUTS & BOLTSFactors to consider:

RISK MANAGEMENT NUTS & BOLTSTwo-Pronged Approach:

APPLYING EVERYDAY

VOLUNTEER MGMT BEST PRACTICES

APPLYING THE RISK

MANAGEMENTPROCESS

POSITION DESCRIPTIONS APPLICATION PROCESS

ORIENTATION & TRAINING

POLICY MANUALDOCUMENTATION

ONGOING COMMUNICATIONTRACKING SYSTEM

FOR EACH OPPORTUNITY FOR EACH

CONSTITUENCYWHAT ARE THE RISKS?RATE THE LIKELIHOOD

RATE THE SEVERITYWHAT ACTIONS?HOW COSTLY?

RISK MANAGEMENT NUTS & BOLTSFirst Prong:

APPLYING EVERYDAY

VOLUNTEER MGMT BEST PRACTICES

POSITION DESCRIPTIONS

SERVICE GOALSDUTIES &

RESPONSIBILITIESLOCATION & SCHEDULE

DURATION OF COMMITMENT

REQUIRED/PREFERRED SKILLS

REQUIRED TRAININGREQUIRED

DOCUMENTATIONSUPERVISOR

BENEFITS

RISK MANAGEMENT NUTS & BOLTSFirst Prong:

APPLYING EVERYDAY

VOLUNTEER MGMT BEST PRACTICES

APPLICATIONPROCESS

TRANSPARENT PROCESS:ORIENTATIONAPPLICATION

PERSONAL INTERVIEWREFERENCE CHECKS

BACKGROUND CHECKSTRAINING

DOCUMENTSPROBATIONARY PERIOD

RISK MANAGEMENT NUTS & BOLTS First Prong:

APPLYING EVERYDAY

VOLUNTEER MGMT BEST PRACTICES

ORIENTATION & TRAINING

KNOWLEDGE, SKILLS, ATTITUDES

EXPECTATIONS: WHAT & WHY

EXPLICIT DIRECTIONS (DO)SPECIFIC VIOLATIONS

(DON’T)CONSEQUENCES

RULES OF CONDUCTSYSTEM FOR TERMINATIONPREPARATION FOR SPECIFIC

SCENARIOS

RISK MANAGEMENT NUTS & BOLTS First Prong:

APPLYING EVERYDAY

VOLUNTEER MGMT BEST PRACTICES

POLICY MANUAL

MISSION, VALUES, HISTORYDESCRIPTION OF SERVICES

SCREENING PROCESSOUTCOMES, EXPECTATIONS

OPERATIONAL POLICIESEMERGENCY PROCEDURES

CODE OF CONDUCTREASSIGN/TERMINATE

WAIVERGRIEVANCE POLICY

ACKNOWLEDGMENT OF RCPT

RISK MANAGEMENT NUTS & BOLTS First Prong:

APPLYING EVERYDAY

VOLUNTEER MGMT BEST PRACTICES

DOCUMENTATION

PERMISSION TO VERIFY INFO

LIABILITY RELEASECONFIDENTIALITY

AGREEMENTEMERGENCY CONTACT

INFOPERSONAL REFERENCES

BACKGROUND CHECKDRIVING RECORD

DRUG TESTCONDUCT AGREEMENTS

RISK MANAGEMENT NUTS & BOLTS First Prong:

APPLYING EVERYDAY

VOLUNTEER MGMT BEST PRACTICES

EVALUATION & COMMUNICATION

ROUTINE FOR CHECKING INON-SITE VS. OFF-SITE

ACTIVE LISTENINGCOACHING STRATEGIESCORRECTIVE FEEDBACK

PERFORMANCE EVALUATIONS

INCIDENTS & COMPLAINTS

RISK MANAGEMENT NUTS & BOLTS First Prong:

APPLYING EVERYDAY

VOLUNTEER MGMT BEST PRACTICES

TRACKING & RECORDS

APPLICATION & DOCUMENTS

TRAINING CONTRACTSSIGN-IN LOGS

HOURS DOCUMENTATIONINCIDENT REPORTS

PERFORMANCE REVIEWSANNUAL

RECERTIFICATIONS

RISK MANAGEMENT NUTS & BOLTSHow much can be managed with best practices?

MIGHT BE EXPOSED TO

COMMUNICABLE DISEASE

MIGHT BE PHYSICALLY ASSAULTED

BELONGINGS STOLEN

ALL BLANKETS MIGHT GET

DAMAGED OR STOLEN

MIGHT BE VERBALLY

HARRASSED OR THREATENED

MIGHT INADVERTENTLY GIVE OUT

PERSONAL INFO

UNPREPARED FOR

ERRATIC BEHAVIOR

RISK MANAGEMENT NUTS & BOLTS Second Prong:

APPLYING THE RISK

MANAGEMENTPROCESS

FOR EACH OPPORTUNITY

MATRIX OF OPPORTUNITIES:LEVEL OF RESPONSIBILITY

LEVEL OF CLIENT INTERACTION

LEVEL OF INVESTIGATIONLEVEL OF SKILL

LEVEL OF TRAININGLEVEL OF SUPERVISION

LEVEL OF RISK ASSUMPTION

RISK MANAGEMENT NUTS & BOLTS Second Prong:

APPLYING THE RISK

MANAGEMENTPROCESS

FOR EACH CONSTITUENCY

ORGANIZATIONSTAFFBOARD

VOLUNTEERSCLIENTS

COMMUNITYPROFESSION

CAUSE OTHER

RISK MANAGEMENT NUTS & BOLTS Second Prong:

APPLYING THE RISK

MANAGEMENTPROCESS

WHAT ARE THE RISKS?

PHYSICAL HARMEMOTIONAL TRAUMA

HUMAN RIGHTS VIOLATIONS

CREDIBILITY & TRUSTREPUTATION

MEDIA & PUBLIC RELATIONS

LIABILITY & LITIGATIONLICENSING/ACCREDITATION

RISK MANAGEMENT NUTS & BOLTS Second Prong:

APPLYING THE RISK

MANAGEMENTPROCESS

RATE THE LIKELIHOOD

1 = NOT AT ALL LIKELY5 = VERY LIKELY/CERTAINCOMBINE WITH SEVERITY

RATINGEXAMPLE: DRUNKENNESSVERY LIKELY BUT DAMAGE

TO CONSTITUENT/PROGRAM/ORGANIZATION MINIMAL

(SEVERITY)

RISK MANAGEMENT NUTS & BOLTS Second Prong:

APPLYING THE RISK

MANAGEMENTPROCESS

RATE THE SEVERITY

1 = NOT AT ALL SEVERE5 = VERY SEVERECOMBINE WITH

LIKELIHOOD RATINGEXAMPLE: PHYSICAL

ASSAULTVERY UNLIKELY BUT

DAMAGE TO CONSTITUENT/PROGRAM/ORGANIZATION WOULD BE DEVASTATING (SEVERITY)

RISK MANAGEMENT NUTS & BOLTS Second Prong:

APPLYING THE RISK

MANAGEMENTPROCESS

WHAT ACTIONS?

DEVELOP ADDITIONAL TRAINING, OPPORTUNITIES

FOR ROLE PLAYPROVIDE SCRIPTED

LANGUAGESELF-DEFENSE INSTRUCTION

FIRST-AID REQUIREMENTSEMERGENCY PROTECTION PHOTO DOCUMENTATION

POLICE PRESENCE

RISK MANAGEMENT NUTS & BOLTS Second Prong:

APPLYING THE RISK

MANAGEMENTPROCESS

HOW COSTLY?

COST OF ADDITIONAL TRAINING

DIFFICULTY OF REQUIRING ADDITIONAL TRAINING

COST OF FIRST-AID INSTRUCTORS

COST OF PROTECTION TOOLS

COST OF POLICE PROTECTION

EMOTIONAL RESISTANCE

RISK MANAGEMENT NUTS & BOLTS Two-Pronged Approach:

POSITION DESCRIPTIONS APPLICATION

PROCESSORIENTATION &

TRAININGPOLICY MANUAL

DOCUMENTATIONONGOING

COMMUNICATIONTRACKING SYSTEM

FOR EACH OPPORTUNITY

FOR EACH CONSTITUENCYWHAT ARE THE

RISKS?RATE THE

LIKELIHOODRATE THE SEVERITY

WHAT ACTIONS?HOW COSTLY?

BEST PRACTICES RISK MGMT

Apply liberal doses of common sense

Involve your volunteersProvide explicit directionPraise & punishDon’t assume

RISK MANAGEMENT NUTS & BOLTSTen Strategies For Managing Risk:

Establish policies and follow through

Empower the board to meet its legal obligations

Provide guidance on privacy issuesUse written agreements to spell

out requirementsMake risk management everyone’s

responsibility

RISK MANAGEMENT NUTS & BOLTSTen Strategies For Managing Risk:

Select ONE service opportunity that your program offers

Identify 3-5 risks associated with this opportunityHow do you address these risks in your everyday

practices?Rate the likelihood (scale of 1-5)Rate the severity (scale of 1-5)What additional actions can/should be taken?Are there cost/complexity factors?

RISK MANAGEMENT NUTS & BOLTSExercise:

Checklist: Are Volunteers Included in Our Legal & Risk Planning? From Leading the Way for Successful Volunteer Involvement by Betty Stallings

Identify three actions you can implement immediately

Identify three actions you can implement within 60 days

Identify three actions you would like to implement within this calendar year

RISK MANAGEMENT NUTS & BOLTSExercise:

No Surprises: Harmonizing Risk & Reward in Volunteer Management, 4th Edition, Nonprofit Risk Management Center, www.nonprofitrisk.org

Volunteer Management, 3rd Edition, Steve McCurley & Rick Lynch

Leading the Way to Successful Volunteer Involvement, Betty Stallings with Susan J. Ellis

Complete Idiot’s Guide to Recruiting & Managing Volunteers, John L. Lipp

Visionary Leadership in Volunteer Programs, Marlene Wilson

RISK MANAGEMENT NUTS & BOLTSResources:

“Volunteering Is Inherently Risky”, Susan J. Ellis, Nonprofit Times, http://www.energizeinc.com/art/nprisk.html

“Federal Law Protects Nonprofit Volunteers”, Don Kramer, Energize Inc. archive, http://www.energizeinc.com/art/ifed.html

“Reference Checks”, John Patterson, Energize Inc. archive, http://www.energizeinc.com/art/astaf.html

“Volunteer Screening”, Charles Tremper & Gwynne Kostin, Energize Inc. archive, http://www.energizeinc.com/art/anos.html

“Running the Risk? A Risk Management Tool for Volunteer Involving Organizations”, Energize Inc. archive, http://www.energizeinc.com/art/subj/risk.html

RISK MANAGEMENT NUTS & BOLTSResources:

RISK MANAGEMENT NUTS & BOLTS

“Every organization must grapple with its own tolerance for risk. Just be sure that fear of liability does not lead to narrow and confined roles for volunteers...Practice conscientious management and then be willing to defend your activities passionately should someone decide to take you to court. What you gain by accepting some risk is as great as what you lose by avoiding it.” Susan J. Ellis, Volunteering Is Inherently Risky, Nonprofit Times, 1996