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

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.

WHAT?

• A discipline for dealing with uncertainty

Risk Management Essentials

• Provide explicit direction– 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

• 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:

– General Liability– Automobile Liability– Worker’s Compensation– Fine Arts– Civil Rights– Bond– Other Public Property/Automobiles

MEMORANDUM

TO:

FROM:

______________________________________

DATE: June 11, 2006

SUBJECT: 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?

• 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 nonprofitorganization or governmental entity for harm caused to another.

Using the 4-H Emblem

• 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