Risk management is the process of identifying, assessing and controlling threats to an organization’s operations. It may be defined as a group of systematic, coordinated, and proactive activities aimed at the evaluation and treatment of uncertainty and events. This includes among other things the organization’s ability to:
- Influence the probability and positive or negative impact of events.
- Understand/exploit correlation between various types of risk.
- Monitor development of the risk profile over time.
- Initiate activities which align the path of development with the required direction.
- Build a culture which ensures the implementation of activities and leads to sound risk management.
Consider these key steps when implementing risk management:
- Define a risk management strategy
- Identify and analyze internal and external risks
- Manage risks through implementing a strategy
- Formulate a contingency plan
Key benefits of risk management include:
- Creates a safe and secure work environment for all staff and customers.
- Increases the stability of business operations while also decreasing legal liability.
- Provides protection from events that are detrimental to both the company and the environment.
- Protects all involved people and assets from potential harm.
- Helps establish the organization’s insurance needs in order to save on unnecessary premiums.
Catholic Mutual Group (CMG) supports the risk management activities of the Archdiocese, providing us with property, liability, and employee benefit coverage and related services. A group of Midwest Catholic bishops established CMG in 1889 as The Catholic Mutual Relief Society of America. Unable to obtain reasonably priced, reliable insurance, the bishops formed a mutually protective organization which would help repair or rebuild damaged church properties.
Property and Assets works closely with Catholic Mutual in carrying out our mission, “securing our future and preserving our patrimony.” We encourage pastors to explore the wealth of information on the Catholic Mutual website, accessible through the priest’s portal.