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What is Risk Management?

 

What is Risk Management?

Common insurance and safety risks can be found in any co-op. Many are caused by members, and most are preventable. If they are not identified and managed, the number of claims made to your insurance company can increase quickly and the cost to manage those claims will continue to rise. This becomes expensive and time consuming and can have a very negative effect on the long term sustainability of your co-op and the safety of your co-op community. A co-op that has an annual risk management plan in place, and follows it consistently, will find it easier and more cost-effective than having to deal with unexpected crises or situations after they happen.

Risk management is an ongoing process that includes identifying, analyzing, and responding to potential risks that could have an impact on your co-op. It is a proactive approach to control an expensive loss to your co-op before it happens. Effective risk management can also offer your co-op the potential to reduce both the possibility of a risk occurring, and the size of its potential impact.

Risk management is a collaborative effort that includes everyone involved in your co-op—your staff or manager, the members of your Board, and all of your members to help identify potential risks early and work towards reducing or eliminating them.

Annual Risk Management Plan

An annual risk management plan is important to the overall commercial insurance program. Claims are increasing and costs are rising. It is important that all co-ops participating in CHF Canada’s insurance program do their part to reduce the number of claims to keep insurance rates and premiums down, and the program sustainable.

Our new Risk Management Program is designed to provide you with the information and tools you need to develop an annual risk management plan for your housing co-op that is less time-consuming and involves everyone in the process. We are doing this over a three-year period in order to give your Board and management the time they need to build risk management into your co-op’s daily routines.

Find more information on how to participate in the program here.