Managing condo association risks is an important part of sustaining daily operations. A condo association is a business, and risk management strategies can limit liabilities (and the costs associated with them), much like these strategies help a typical corporation. Proactive preparation minimizes loss and creates a safe environment for residents, employees and the board members.
Develop a Unique Strategy
Primary condo association risks deal with the premises. Unsafe terrain or concerns with security, whether from natural disasters, outbursts of violence or deteriorating structures, can lead to costly problems and litigation. By creating a unique strategy for your specific association, you can make sure direct risks are addressed.
- Prioritize the risks by evaluating which ones have the greatest likelihood of occurring and which ones will have the most significant impacts on the community.
- Devise plans that have actionable steps for preventing and mitigating the risks that were prioritized. Be sure the plan moves past the development stage and is implemented.
- Rely on insurance protections to reduce the significant costs that come from condo association risks.
- Conduct a risk management audit as needed to evaluate how the strategy is working and to address claims or concerns that have been raised.
A risk management strategy is a proactive way to address the potential liabilities that exist within your condo community. Committing to this strategy demonstrates the commitment your association has to its community.