Measure, Manage and Reduce
Presented By:
Rick Richardson
4-H Specialist
Ag. & Natural Resources
Objectives
• Participants will learn the definition of risk
management and how it applies to being a youth
development professional.
• Participants will learn to construct a risk management
plan.
• Participants will learn the value of insurance and the
relative liability in working with youth.
• Participants will learn to assess risk and manage
conflict.
• Participants will understand the importance of written
policies and procedures.
Risk Management
WHAT?
• A discipline for dealing with uncertainty
WHY?
• Reduce the likelihood of injuries/mishaps
• Minimize adverse effects of any losses that do occur
• Enable an organization to demonstrate due diligence.
• Meet minimum funder and/or insurer requirements.
Risk Management Essentials
• Provide explicit direction
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Volunteer agreement
Code of Conduct
Staff/volunteer handbook
Feedback
Establish policy and follow through
PEOPLE PROPERTY FINANCIAL IMAGE
Key Risk Management Questions
• What could go wrong
• What will we do
– Now
– Then
• How will we pay for it
Risk Management Strategies
• Reduce- Removing risks or hazards (the whole
event or parts.)
• Avoid – Remove all risk by avoiding it
entirely
• Transfer – Pass the responsibility on to
someone else.
• Assume – Knowing risks are involved and
accepting them.
Who is responsible?
• 4-H Youth Development faculty, staff and
volunteers
• County and University trained staff can help
Why we have lawyers!
• Disclaimer – all that I am going to present in
this brief presentation is factual and accurate
within the scope of the limited knowledge that
I have on this subject.
The Questions
• What is an accident?
and
• What is insurance?
Accident
• Accident:
Any sudden event which is unintended.
Insurance
• Insurance:
A system under which individuals, businesses, and
other organizations or entities, in exchange for
payment of a sum of money (called a premium),
are guaranteed compensation for losses resulting
from certain perils under specified conditions in
a contract.
The Answer
• Accident Insurance:
Insurance coverage against loss by accidental
bodily injury.
Examples of an Accidents
• Oops, I spilled my coffee
• Darn it, I nicked myself shaving
• Falling off horses, getting kicked by a steer,
sewing ones finger, falling out of trees, falling
down roller skating, having one’s pig knock
the legs out from under you.
GUESS WHAT?
• Accidents DO HAPPEN in the 4-H Program.
• There is help.
American Income Life Insurance
• 1-(800) 849-4820
• Full year coverage for $1.00/person/year
• Specific events from .15 cents to
.23/member/day
• Read policy
Special Markets Insurance
• 1 (800) 727-7642
• .39 cents/member/day
• Read policy
Things to consider
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Age
Is the event age appropriate
What could go wrong
What will we do
If accident should happen – file claim report
(pg 31 of Policy and Procedure Manual)
Liability Insurance
• Liability:
Any legally enforceable act or obligation.
• Liability Insurance:
Insurance covering the legal liability of the
insured resulting from injuries to a third party
to their body or damage to their property
Negligence
• The failure to use the reasonable care that a
prudent person would have used under the
same or similar circumstances.
TORT
• A negligent or intentional civil wrong not
arising out of a contract or statute. These
include "intentional torts" such as battery or
defamation, and torts for negligence
• i.e.. Breech of Contract
TORT (cont)
• A tort is an act that injures someone in some way, and
for which the injured person may sue the wrongdoer
for damages. Legally, torts are called civil wrongs, as
opposed to criminal ones. (Some acts like battery,
however, may be both torts and crimes; the
wrongdoer may face both civil and criminal
penalties.)
Certificate of Insurance
• http://www.nmsu.edu/~purchase/For%20Employees.
htm
• State of New Mexico Risk Management Division
• These are the items issued under the certificate:
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General Liability
Automobile Liability
Worker’s Compensation
Fine Arts
Civil Rights
Bond
Other Public Property/Automobiles
MEMORANDUM
TO:
FROM:
______________________________________
DATE:
SUBJECT:
June 11, 2006
Certificate of Insurance
New Mexico State University (NMSU) and it’s operating units including the
Cooperative Extension Service (CES) are classified as an instrumentality of state
government.
Insurance coverage for NMSU/CES is described in the attached “Certificate of
Insurance”. Insurance coverage is in place for all participants in programs
conducted by NMSU/CES.
Thank you for your time and support.
Who can use the insurance?
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Agents for extension events
4-H leaders for 4-H events
Master Gardeners for MG events
And others.
What protects are leaders?
Trained and certified - ?
Working within the scope of their duties - ?
Exercising due diligence - ?
Volunteer Protection Act
A volunteer of a nonprofit organization or governmental entity is not
liable for harm caused by an act or omission done in the scope of
responsibility on behalf of the organization. This applies if the
volunteer was properly authorized and licensed, if such is
authorization is needed.
Exceptions: the harm was caused by willful or criminal misconduct,
gross negligence, reckless misconduct or a conscious, flagrant
indifference to the rights or safety of the individual harmed; or if the
harm was caused by the volunteer operating a motor vehicle, vessel,
aircraft or any vehicle for which a license or insurance is required.
Nothing in this section can be construed to affect a civil action
brought by a nonprofit against a volunteer. Nothing in this section
can be construed to affect the liability of a nonprofit
organization or governmental entity for harm caused to another.
Using the 4-H Emblem
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Federal Tax Exemption
UDSA/CREES owns it
We manage it.
Unless you are willing to stake your name on it
be careful how you hand it out.
Risk Management Plans
• Resources
– Management Checklist
– Example Plan
– www.nonprofitrisk.org
• Volunteer Issues
– Volunteer Screening
– Chaperone Training
Thank You’s to…
• Melanie Herman
Nonprofit Risk Management Center
• Tim Nesbit
• To all of you