Are selected risk control and risk financing options achieving their expected results? If not, make adjustments where/when needed.
Examples:
- Update values in the property insurance policy, because they may have changed substantially
- Remarket the risk financing program to ensure competitiveness of pricing or coverage
Monitoring considers:
- Identify new operations or property changes that affect the entity s exposure to risk
- Inspect property, activities and operations regularly for exposure changes
- Proper implementation of control, financing and communication strategy
Benefits of monitoring include:
- Identification of new or changing risks
- Accumulation of evidence to support assumptions and results of analysis
- Development of a more accurate portrait of risks
- Reduction of costs associated with improper or redundant risk control measures
Operational Recommendations:
- Empower staff or committees to address operational risk management
- Board to receive updates regularly
- Conduct audit of ongoing operational risks
- Implement policies and procedures
- Investigate and keep records on all claims
- Have insurance in place, review regularly to ensure sufficient limits and it covers risk
- Review all legal agreements to identify their risks then manage through waivers, risk assumptions, indemnifications
- Ensure third party contractors have sufficient and proper kinds of insurance
- Educate staff/volunteers about risk and how to avoid, prevent or remove it
