Risk Management for First Nations Presented by Bob

Risk Management for First Nations Presented by: Bob Burhoe, CIP, CRM

Your Mission n n As a First Nation Government your specific mission will be unique to your people - but it probably includes providing services and other assets for your people Risk Management can help by identifying risks that damage or destroy assets and/or prevent services to those who need them

Facilities & Services n What services or facilities do you need to carry out your mission? n Do you have to provide them all or can others provide some?

Community Centre?

Police Services?

Playgrounds?

Recreation & Administration?

Fire Hall and Radio Station?

Water?

Elders Wellness Centre?

Trading Post?

Risk Management in a nutshell n Identify Risks that prevent you from accomplishing your goals n Decide how to reduce or eliminate each Risk identified

Risk Identification n How are Risks identified? One method is to classify your risks as the insurance industry does.

Insurance Approach n n n Insurers use different categories for ease of understanding Makes sure nothing is missed Has the advantage of relating risks to insurance coverages

Risk Identification Categories

Property & Income Risks Fire, vandalism, theft, windstorm, flood, etc. damage to buildings or equipment n Loss of income resulting from the damage n Contingent exposures (extra costs or loss of income resulting from damage to property of others) Solutions: Education, Loss Controls, Insurance n

Automobile Risks n n Owned Vehicle Exposures n Your liability to others from an accident n Damages to your vehicle Non-Owned Vehicle Exposures n Liability to others from an accident of employee using his/her own car Solutions: Selection, Training, Insurance

Crime Risks n Employee Dishonesty n Burglary, Holdup, Forgery Solutions: Selection, Controls, Insurance

General Liability Risks n Negligence n n Joint & Several Liability n n You owe a reasonable duty of care to those who enter your lands - especially children You only have to be 1% negligent to end up paying for 100% of a judgment Contractual exposures n You can be liable for damages because of what’s in a contract – be careful of what you sign

General Liability Facts n n n Injuries happen where and when no one is looking For every injured child there will be two litigious parents Anything over 2 feet in height is a climbing apparatus for a child

More General Liability Facts n n n If it moves, it can collide with something If it was constructed, it can break If its a liquid, it can squirt, seep, leak or drown If its a gas, it can escape If its up, it can fall

Absolute General Liability Facts n n If its alive and under 10 years old, it will be curious and adventurous If its alive and over 10 years old, it will be curious and adventurous

Health & Disability Risks Death or Injury to Key Persons at home or while traveling n Death or Injury to Others - employees, contract workers Solutions: Separate travel, Cross training, Insurance n

Insurance n Insurance is a major Risk Management tool n How do you go about getting it?

Selecting a Broker n Decide what you want from a broker n n Insurance expertise? Risk Management advice? Ask others in your position who they recommend n n n Do they provide sound advice? Ask about the service - Any problems? Have they experienced a claim? What happened?

Meet with the Selected Broker n n Meet with the Broker you select. Talk to them about your account. Ask questions. Did what they say make sense? A good Broker will ask what you expect – besides a good price – and they’ll tell you what they can supply!

Tendering your account n n Get a consultant to help determine priorities, collect data, establish risk management practices, determine insurance needs – can be expensive or Pick one or two brokers who specialize in First Nations Government insurance programs – get them to recommend and price an insurance program tailored to your requirements

AFN Insurance n n Licensed across Canada Serves only First Nations Insurance programs distributed by selected broker for each province Programs for n n First Nations Governments First Nations Housing Tribal Councils Others