When it comes to risk management, it’s easy to immediately think of intruders, active shooters, sexual violence, and natural catastrophes. We’ve been conditioned to conjure up extremes due to media reports on violent events that impact schools.
While this association is understandable, risk management is a broad term, encompassing numerous categories with potential hazards. Yes, it embodies extreme situations, but it also addresses less sensational threats, such as mold, faulty playground equipment, unlicensed vendors, social media activity, unmaintained employee records, and outdated insurance policies,.
Risk management should be more than a simple checklist you scan annually before opening your school’s doors or a document you refer back to periodically. Risk management must be a part of an administrator's daily tasks. It’s all about diligence and awareness.
The Business Manager and School Head typically take the lead when it comes to risk management. A risk management team can distribute responsibilities, helping everyone become involved in this process. Whether or not you choose to create this team, every school, regardless of size, should be aware of the four areas where we see the most risk—and lawsuits.
Employee Practices: Hiring, Firing, and Basic Communication
Employee malpractice is a leading cause of lawsuits in organizations. Having clear processes for hiring, firing, and employee communications can help reduce your risk.
In hiring, interview questions should be uniform for all candidates. These questions should pertain to the position, and if possible, approved by your legal counsel. This will help you establish a written agenda for each interview and maintain fairness.
Also, know what not to ask. Questions that can be interpreted as discriminatory must be avoided. These are typically questions about age, marital status, family, sexual orientation, religion (unless your school is faith-based), and the like.
For example, let’s assume you’re interviewing someone who makes small talk by mentioning the recent Super Bowl and how they remember the first year Tom Brady won. Although it might be tempting to follow this candidate down memory lane, this could quickly lead to dangerous territory. What seems harmless could end up disclosing age or other personal insights that could be used against you later if you decide on another candidate.
When it is necessary to terminate an employee who has not performed to your school’s standards, there must be a well-documented trail of failed goals and missed opportunities. This won’t be the case for sudden terminations that might happen in extreme cases. However, for the majority of firings, formal documentation should be maintained. Also, having a witness present adds an extra layer of protection in the event the former employee files charges for wrongful termination.
Employee handbooks should be updated with clear policies and expectations that align with your school's mission. The handbook should describe how your school approaches evaluations and goal-setting, open-door policies, social media guidelines, and actions that will take place if an employee violates policies. Each employee must know what they are accountable for in terms of job duties, communications, and the community. Each should "sign off," declaring that their responsibilities are clearly understood.
Smaller schools might not have a designated Human Resources Manager charged with overseeing these elements. These duties are often inherited by the School Head or Business Manager, who may not be comfortable or prepared to navigate tricky employee situations.
For those not well-versed in HR, ISM highly encourages engaging in professional development to come up to speed. There are numerous resources available, including ISM workshops designed to help those unfamiliar with HR functions.
Insurance Policies: Broker Relations and Basic Insight
It is necessary to have adequate insurance coverage, but the nuances of different policies are easily overwhelming for even the most seasoned administrators. Finding a trusted broker is key.
However, most brokers don’t work exclusively with private-independent schools, and the plans they offer are typically designed for corporate organizations. And, because they don’t work exclusively with schools, they may not fully understand the differences needed in coverages.
A good broker:
- knows your unique coverage needs—especially if you’re a faith-based school,
- has creative solutions for budgets of all sizes and can help you plan for growth, and
- is not involved on with your Board.
You should know what policies you currently have, what events are covered, and what events are not. For example, you should understand if your school has coverages for natural disasters, data breaches, campus invasions, sexual misconduct claims, employee malpractice, discrimination claims, student accidents, etc. You might not have a budget large enough to protect against everything, but you should know where you’re most vulnerable.
When it comes to offering your employees health coverage and benefits, you should have the same baseline understanding of what is included in your school’s portfolio—even if your broker handles all of the details.
International Student Programs: Homeland Security Compliance
Hosting international students can be an attractive endeavor for private schools because these programs help fill seats. However, there is a lot more to a healthy international student program than simply enrolling students.
Over the past several years, there have been schools that haven’t abided by the rules set by the Student and Exchange Visitor Program (SEVP). It has led to schools losing SEVP certification and abruptly ending their international program. Ending a program mid-season will negatively impact everyone: your domestic student body, the international student, and your school’s bottom line.
If your school has an international program, your Principal Designated School Official (PDSO) must know all current policies, standards, and expectations of the Department of Homeland Security. This is a role that must be taken seriously.
Your school’s PDSO is responsible for maintaining the Student and Exchange Visitor Information System (SEVIS) with accurate and current information. Failure to manage documentation properly can result in loss of certification. And, although you might work with an agent who takes on the responsibility of obtaining student information, it is your school’s responsibility to maintain and accurately report these records.
Crisis Communication: Too Much, Too Little, All the Wrong Channels
Communicating with parents, faculty, staff, and students during an emergency requires planning the best methods to distribute the right information across the correct channels.
A well-crafted crisis communication plan will define:
- who is part of the communication chain if (and when) there is an emergency,
- how messages will be delivered (for example: phone, text, email, social media),
- what is in your school’s crisis communication tool kit, and
- some pre-prepared responses for media questions.
A well-orchestrated plan minimizes risk and exposure—and most importantly, aids in protecting everyone in your school community.
Consider these four areas and ask yourself an important question—Is your school adequately protected from risk?
ISM Gold members can assess their risk exposure by taking the Risk Management Assessment. Nonmembers can request the snapshot by contacting Martin Kelly at mkelly@isminc.com.
Additional ISM resources:
The Source for Business & Operations Vol. 17 No. 6 Four Items You Must Include in Your Employee Handbook
The Source for Business & Operations Vol 16 No. 9 A Risk Assessment Self-Exam
Additional ISM resources for members:
I&P Vol. 41 No. 5 The Risk Management Assessment Process
ISM's Risk Management Assessment
