Insurance is also a valuable risk-financing tool. Few organizations have the reserves or funds necessary to take on all risk themselves and pay the total costs following a loss. Purchasing insurance, however, is not a complete risk management plan.
A thorough and thoughtful risk management plan is the commitment to prevent harm. Risk management also addresses many risks that are not insurable, including brand integrity, potential loss of tax-exempt status for volunteer groups, public goodwill and continuing donor support. By integrating risk prevention activities into your annual operations plan, you may improve efficiencies and increase capacity.