COM 0804.015 2002-2004 - Laserfiche WebLink

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Establishing a Written Risk Management Policy Statement A written policy statement is an effective tool for communicating the purpose of the risk 1 management role to others throughout the organization. It also identifies specific actions that employees can take to contribute to and help promote the organization's overall efforts. A risk program is more likely to succeed if it is based on a policy statement endorsed by the governing body or chief executive officer or mayor. A strong policy statement would: (1) define risk as a priority for all employees, (2) empower a risk team to identify risks and develop a plan to address them, and (3) require the participation of all operational departments. Although the policy statement should be distributed throughout the organization, it is particularly important to communicate risk policy to department heads or others who will be asked to contribute resources (primarily manpower or employee time). Advantages of a Written Statement • Establishes the general goals and objectives of the risk management function within the organization • Defines the duties and the authority/responsibility relationships of the risk management department • Coordinates the treatment of loss exposures on a reasonably standardized basis among the various departments • Establishes and/or improves existing communication changes and management information systems within the organization • Provides for program continuity and facilitates a smoother transition during changes in administration and/or personnel The policy statement is a continuing guide and would be especially helpful to new employees. Furthermore, for the risk management professionals and staff, a written statement: • Provides the framework for assessing responsibility for controlling and/or fihancing loss expenses • Emphasizes the importance of the risk management function • States the position of the risk management department within the overall organizational chart 1