Can We Do This?

As a claims manager for a public risk pool, I get a lot of email inquiries that fall under the “Can we do this” category. It looks something like this:

“Our employees want to hold a donkey basketball game as a fundraiser. Can we do it?”

“We want to have a dunk tank at our annual picnic, can we do it?”

I always tell people that “Can we do it” is the wrong question. The better question is “Should we do it”.

And in order to answer the “Should we do it” question, we must first ask a few other questions:

1.       Is the activity covered?

Whether it’s a donkey basketball game or sending your sales team to another country to tour a factory, you need to find out what type of coverage you need and whether it extends to the activity in question.

Holding a small gathering at your business and hosting 100 people? Possibly covered. Hosting 1,000 people? Your carrier may want to know ahead of time. The question of coverage is best answered by your broker.

If the activity is not currently covered, you can work with your broker to secure the appropriate coverage for the activity.

2.       Are you trying to get to Yes? Or do you need help justifying a No?

I’m a big believer in the pathway to Yes. Risk Management isn’t about shooting down every idea that sounds remotely risky. Every organization must accept some level of risk to meet its organizational objectives. That level of risk is your risk appetite. Together, we can find a pathway to Yes that fits into your risk appetite.

Unless…you don’t even want to do this thing in the first place, and the REAL reason you’re calling me is because you need help justifying a No.

You would be surprised how often people call me asking for help in crafting a “No”. They don’t even WANT to host a donkey basketball game. They think it is a HORRIBLE idea! But the CEO loves donkeys AND basketball and the risk manager is afraid to tell them No.

There’s nothing wrong with calling in reinforcements to hold the line, but be clear about whether your goal is a yes or a no.

3.       If this activity is considered high risk AND you still want to proceed, are there ways to reduce the risk?

If you’re trying to get to a Yes, are you prepared to install measures to reduce the risk and mitigate the impact of potential claims? Perhaps that means acquiring a special event policy, or implementing safety measures. Whatever the case may be, you need to make sure you have a plan.

So the next time someone in your organization has a bright idea like hosting your own fireworks show, make sure you’ve asked the right questions before you ask if you should proceed with the activity.