Risk management is the process of making and carrying out decisions that will minimize the adverse effects of risk on a municipality. Program participants can realize reduced risk (control losses or claims), and thereby keep insurance costs at a manageable level. There are many reasons for managing risk. Here are some items specifically related to municipalities:

• Saves resources: people, income, property, assets, time
• Protects public image
• Protects people from harm
• Prevents/reduces legal liability
• Protects the environment
• Public entities are likely to be targeted for litigation and claims
  • Large and perceived as having lots of assets
  • Very visible target
  • Catch-all for litigation
  • Perceived as having large insurance policy limits
  • People are becoming more litigious
  • Courts are often sympathetic to injured people
• Joint and several liability (deep pockets pay)
• Elected officials at all levels of government are increasingly facing scrutiny of their actions related to:
  • Control of public funds and municipal assets
  • Providing effective oversight of the municipality’s administration
• Knowing the risks versus thinking you know them
• Ability to measure and prioritize risks
• Clear and structured approach
• Increases defensibility of claims and lawsuits
• Increases stability of operations
• Reduces and stabilizes cost of risk over time

Risk management ensures that an organization identifies and understands the risks to which it is exposed. Risk management also guarantees that the organization creates and implements an effective plan to prevent losses or reduce the impact if a loss occurs.

A risk management plan includes strategies and techniques for recognizing and confronting these threats. Good risk management doesn’t have to be expensive or time consuming; it may be as uncomplicated as answering these three questions:

1. Risk Indentification - What can go wrong?
2. Risk Control - What will we do, both to prevent the harm from occurring and in response to the harm or loss?
3. Risk Financing - If something happens, how will we pay for it?

AMSC Risk Control Program

The AMSC Risk Control Program has been designed to meet three key objectives:

1. To help our clients significantly reduce the frequency and cost of claims arising from key exposure areas i.e. Property, Liability and Automobile.
2. To provide our clients with the foundation (knowledge and tools) they need to better manage all key exposure areas.
3. To build a robust database of risk information that will help support continued Program growth and performance i.e. reporting to our stakeholders (Program clients, the AUMA, and the Superintendent of Insurance), risk management analysis and strategy, and the cost-effective placement of Program insurance/reinsurance.

Program Topics Workbook Structure and Content

Workbooks have been designed to be easily read and understood by all skill levels. The amount of theory has been limited to only as much as is necessary to understand key issues. Instead, emphasis has been placed on providing practical information that users will be able to apply and use.

The workbooks are laid out in such a way that basic and common concepts are discussed at the beginning and concepts become more advanced as the workbook progresses. This is in recognition that member municipalities are of varying sizes, structures and operations, and that not all topics are relevant to all members. The speedometer dials on Modules 1- 3 indicate basic user level to advanced user levels. If you have completed the training in any of these modules, please contact us to gain access to the full PDF files and/or videos.

• Module 1: Essentials of Municipal Risk Management and Facility Loss Control
• Module 2: Liability Loss Control – Public Works
• Module 3: Fleet and Equipment Loss Prevention
• Module 4: Liability Loss Control – Parks and Recreation

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