What is Church Risk Management & Why Is It So Important To The Ongoing Mission Of Your Ministry?

Simply speaking, a risk is any uncertainty about a future event that threatens your ministry's ability to accomplish its mission. Although your "fund balance" may be small, and equipment may be second generation, your church has vital assets at risk.  Church assets fall into the following categories.

• People -- board members, volunteers, employees, clients, donors, and the public.
• Property -- buildings, facilities, equipment, materials, copyrights, and trademarks.
• Income -- sales, grants, and contributions.
• Goodwill -- reputation, stature in the community, and the ability to raise funds and appeal to prospective congregants.
  

What The Church Must Do To Protect Itself

Managing risk in the local church is no longer an option. The church has been and will continue to be the subject of major litigation. Though the primary duty of the pastor is to teach and proclaim the timeless truths of God’s Word, he is also obligated to protect the vulnerable and the innocent who have been entrusted to his care.

What are some of the issues that create risk for your ministry?

• Child Safety Issues
• Playground Safety
• Youth Events
• Food Service
• Volunteer Selection
• Volunteer Worker Training
• Employee Hiring Practices
• Employee Safety
• Sexual Misconduct
• Policies and Procedures
• Transportation Dangers
• Passenger Van Concerns
• Accident Prevention
• Repair & Maintenance of Facilities
• Fraud - the theft or misappropriation of funds
• Inadequate & Incorrect Insurance Coverages
  
  
  

  5-Step Risk Management Strategy
  
  1. Identify your church's exposure to loss. What risks do you face? Evaluate ministries, facilities, policies and procedures, staff practices, liabilities, insurance coverages, etc.
  
  2. Analyze the potential impact and scope of the identified risks on the church. Would losses be manageable through operating income, or would the loss threaten the viability of the church?
  
  3. Select the best risk management techniques that your church can use to reduce the identified risk:
  - Eliminate the risk
  - Reduce the risk
  - Live with the risk
  - Transfer the risk
  
  4. Implement the appropriate risk management techniques and training to reduce risks.
  
  5. Evaluate the effectiveness of your risk management program, provide feedback to ministry leaders and church members, and make adjustments as necessary.

Below you will find additional information and articles concerning Church Risk Management.  Please call us if you have additional questions concerning this important topic.