Taking the Guesswork Out of Risk Management

We definitely have to factor likelihood of various scenarios happening.

If you don’t have a car, then you don’t need auto insurance. If you’re not on a fault line, you might not necessarily need to add earthquake insurance (probably).

And we all have budgets. You’d be dumb to spend every penny you have on insurance.

But risk management is about much, much more than insurance.

What I recommend to my clients is this: Focus on what you have and learn to protect that. Focus on your people, your property, and your operations and build hedges of protection (to use some language from my faith) around those things.

We don’t insure to the likelihood that someone might accuse your volunteers of abuse or molestation. You put risk management in place to protect your clients while putting insurance in place to defend your people or organization if you’re wrongfully accused.

You buy the the insurance and you put best practices in place not because you can predict the future. You do these things because you know the precious resources you have to protect.

You get out ahead of the possibilities and build safe environments. It’s from these safe places that your organization will be much better equipped to change the world.

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