Section / Risk Management / Policy number / 2-A
Topic / Risk Management Plan / Last Review Date / 04/19/16
CARF Standards / 1.G / Last Revision Date / 04/19/16
Purpose / To ensure that the agency is protected against threats to its viability
  1. The agency has a risk management plan that is reviewed on an annual basis and revised in response to changing environments.
  2. The risk management plan addresses4 types of loss exposures:
  3. Liability Loss Exposures. Liability loss exposures stem from civil lawsuits regarding accidents and staff wrongdoing.
  4. Income Loss Exposures.Income loss may stem from increased competition (decreased referrals), loss of funding contracts, funder rate cuts, business interruption due to natural disasters, and recoupment following funder audits.
  5. Personnel Loss Exposures.Personnel loss exposures may arise from death, resignation, involuntary termination, retirement, or medical leave for employees or contractors. Coverage for staff while positions are vacant and while staff are on vacation or medical leave can result in additional expenses. Additional costs related to personnel include unemployment claims, disability insurance, workers compensation insurance, and increasing costs of medical insurance or other benefits.
  6. Property Loss Exposures. Property loss exposures claims may arise from losses tomay relate toagency buildings, automobiles, inventory, tools, equipment, and furniture. Property loss may be a result of natural disasters, theft, accident, loss, depreciation, or age degredation. Property loss exposures can also extend to intellectual property, such as electronic data and programs.
  7. Reputation Loss Exposures. Reputation loss exposure may arise from negative comments from disgruntled staff and ex-staff, dissatisfied consumers and referral sources, negative media exposure, and social media attention.
  8. Each type of potential loss exposure is analyzed to determine the agency’s level of risk and the strategies currently in place to mitigate the risk. Included in this analysis is an evaluation of the adequacy of current insurance coverage.
  9. If the analysis identifies a risk of loss exposure without a strategy to mitigate the risk, a plan is developed to reduce this risk, including the following:
  10. strategies to reduce risk
  11. individuals responsible for implementation
  12. individuals responsible for monitoring implementation
  13. Outcomes of the risk management plan are monitored and reported in the annual Performance Improvement Report

62 / 1.G.1.a.(1) / The organization implements a risk management plan that includes identification of loss exposures / Risk Mgmt Plan
62 / 1.G.1.a.(2) / The organization implements a risk management plan that includes analysis of loss exposures / Risk Mgmt Plan
62 / 1.G.1.a.(3) / The organization implements a risk management plan that includes identification of how to rectify identified exposures / Risk Mgmt Plan
62 / 1.G.1.a.(4) / The organization implements a risk management plan that includes implementation of actions to reduce risk / Risk Mgmt Plan
62 / 1.G.1.a.(5) / The organization implements a risk management plan that includes monitoring of actions to reduce risk / Risk Mgmt Plan
62 / 1.G.1.a.(6) / The organization implements a risk management plan that includes reporting results of actions taken to reduce risks / Risk Mgmt Plan
62 / 1.G.1.a.(7) / The organization implements a risk management plan that includes inclusion of risk reduction in performance improvement activities / Risk Mgmt Plan, Performance Improvement Plan
62 / 1.G.1.b.(1) / The organization implements a risk management plan that is reviewed at least annually for relevance / Risk Mgmt Plan
62 / 1.G.1.b.(2) / The organization implements a risk management plan that is updated as needed / Risk Mgmt Plan
63 / 1.G.2.a / As part of risk management, the insurance package of the organization is reviewed for adequacy at least annually / Risk Mgmt Plan
63 / 1.G.2.b / As part of risk management, the insurance package of the organization protects assets / Risk Mgmt Plan
63 / 1.G.2.c / As part of risk management, the insurance package of the organization includes property coverage, liability coverage, and other coverage, as appropriate / Risk Mgmt Plan
63 / 1.G.3 / The program implements written procedures regarding media relations & social media / Risk Mgmt Plan, Media Relations

Risk Management - Risk Management Plan