Why is risk management important?
Risk management protects people,
property, and resources. It lessens the risk of unsafe or
hazardous conditions and the possibility of serious injury,
property damage, or loss and provides certain protections
in the event of injury, death, or damage to or loss of property.
Is insurance required by
AS 23.30.075 (see "Current
Alaska Statutes" at the Legislative
Folio Infobase) requires an employer to provide insurance
to protect a worker's suffering from a work-related injury.
(This type of insurance is referred to as workers' compensation
insurance.) Granting and other funding agencies and contracting
entities also require insurance as part of the agreement
the parties. AS
AS 29.35.660 require bonding (insurance against theft
or embezzlement) for certain municipal employees and officials.
Who should be concerned about
Everyone should be concerned about risk management, but especially those
organizations that have a lot of public contact and/or conduct
business activities that could increase exposure to risk such
as use of hazardous substances, construction activities, equipment
How do you put a risk management
program in place?
Risk management is done through
a process of identifying potential risks and planning steps
to lessen and control risks and indemnify (insure) against
certain risks. The steps can include developing and implementing
safety programs, conducting training, and paying
to insure against damages in the event an accident should
Who can help with risk management?
There are several public and
private organizations that provide assistance with risk management.
The U.S. Department of Labor and Alaska Department of Labor & Workforce
Development administer the Occupational
and Safety Hazard Act (OSHA), and have a wide variety
of resources and "e-tools" available. The National
Safety Council and various private insurance and risk
management companies also provide information and assistance
in this area.
There is an insurance program
administered by the Alaska
Municipal League (AML) which is available to Alaskan municipalities.
It is provided by a non-profit arm of AML called the Joint
Insurance Association (JIA). The AML/JIA is an insurance
pool that provides affordable insurance coverage to member
cities and a cost-effective resource to control insurance
and risk management costs.
What types of insurance should
an organization have?
At a minimum an organization
would want to consider buying general and auto liability
insurance, replacement insurance, errors and omissions
an insurance bond on staff that handle cash to protect against
theft or embezzlement. Commerce's "Local Government Handbook" chapter
on "Municipal Risk Management" contains a detailed
discussion of risk management and the types of insurance
a local government might want to have in place.