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Edmonds School District

Risk Management, Audit and Internal Controls

We protect students, employees, assets and property by ensuring that vendors are properly insured; that procedures are in place to protect from theft of cash or property; and that losses are reported promptly.

What We Do

  • Protect students, staff and District property from harm
  • Establish and maintain confidence of parents and taxpayers
  • Minimize distraction from District's Strategic Directions
  • Minimize legal fees and costs
  • Minimize employees' personal liability exposure
  • Maximize employees' satisfaction and morale
  • Ensure proper procedures for cash handling are followed

Contact Information

Why Must a School District Manage Risk?

  • Protect students from harm
  • Establish and maintain parents’ confidence
  • Minimize legal fees and costs
  • Minimize distraction from District’s Mission
  • Minimize employees’ personal liability exposure
  • Maximize employees’ satisfaction and morale

How Should a School District Manage Risk?

  • Establish the context: Set goals (e.g., reduce injuries and claim costs, preserve reputation, free up resources, ensure adequate risk financing, etc.) and identify potential barriers or impediments to the implementation of the risk management program
  • Acknowledge and identify risks: Categorize risks according to the four major categories (People; Property; Income; Goodwill)
  • Evaluate and prioritize risks: Establish a list of action items in priority order
  • Select and implement appropriate risk management strategy: (Avoidance when the risk is too great; Modification when changing activity will improve safety; planned retention when financially prudent; contractual Sharing by shifting liability to others)
  • Monitor and update the risk management program: Periodically review and revise strategy to address new circumstances, challenges and opportunities

Risk Management Strategies

There are four essential methods used in addressing the exposure to loss, and/or the consequence of loss (as briefly referenced above): Avoidance (when chance of loss, and/or financial impact is too great), Modification (when chance of loss can be lessened by physical changes, and/or behavioral changes), Retention (when chance of loss, and/or financial impact can be tolerated with deliberate internal funding), and/or Sharing (when financial impact can be shifted, or transferred to another entity, via a hold harmless and indemnification agreement, and/or an insurance policy).

 

  1. Hot Topics in School Law In Washington, Brenda J. Little, Seattle School District #1, (6/5/2001).
  2. Nonprofit Risk Management Center, http://www.nonprofitrisk.org/rmtutorial/process.html, http://www.nonprofitrisk.org/rmtutorial/techn.html, (7/9/2001).