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4 Steps to Risk Management

Posted by Jane F. Bolin, Esq. | Apr 25, 2014 | 0 Comments

There is a certain level of risk involved in everything, whether it's small or large. When it comes to business, failure to acknowledge risks could lead to major trouble and a lack of success. As a property manager or community association, it's up to you to make sure that the community is protected and that emergencies are responded to properly.

So what are the steps to making sure you're handling risk management effectively?

  1. Asses risks: Whether the risks are physical, insurance based or legal based, the first step is to figure out what they are. Just like it's much easier to put out a fire when you have a fire extinguisher, it's much easier to handle an emergency when you're prepared for it. Do a thorough assessment of all the risks associated with the community.
  2. Develop risk-management techniques: Once you have an idea of everything that can go wrong, it's time to figure out how to avoid issues, as well as how to respond to problems that can't be avoided. Make sure you're properly insured, review safety in the community, and double check that everything you do is well within your legal rights. A lot of risks can be avoided with proper management techniques and monitoring, but sometimes things happen, so you need to have a plan in place in the event of an emergency.
  3. Review alternative techniques: Don't stop at just one solution to every problem, because the reality is that things can go wrong. You want to have a plan B just in case plan A doesn't go as expected. It's better to be over-prepared than under-prepared so look at potential risks from all angles and make sure you're protecting yourself and your community.
  4. Monitor and improve programs: If you still have the same risk management program as you did 5 years ago, your plan isn't as effective as it could be. You need to constantly look for ways to improve existing programs and keep up to date with the latest risk management techniques.

It's not easy running an HOA or condo association, but preparing yourself for potential risks can help. You need strategies and programs in place to manage threats, no matter what they concern. If you're unprepared in the event of an emergency, things are going to go south very quickly, so get organized and get ready or you may not have a second chance.

About the Author

Jane F. Bolin, Esq.

Founding Member, Managing Partner


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