Municipalities are continually dealing with risk. Local governments face exposures like other organizations, and their risk tolerance has decreased with mounting economic pressures. Strained budgets and leaner workforces require changes in efficiency and work culture to balance the demands of doing more with fewer resources.

Due to the increase in exposures, insurance products and services are used to help manage municipal risk. These products along with risk management strategies are proving effective in the prevention and mitigation of losses.

Why Is There Need for Municipal Risk Management?

Local governments always face risks because of the types of issues they must address. The current level of exposure has been significantly impacted by several factors.

Technology

The shift toward greater online accessibility has prompted local governments to look closely at cybersecurity. The number of public employees using online technology opens the doors for bad actors to hack into critical systems.

Additionally, with the rise in remote work, staff sometimes use personal devices or unsecured networks to access systems and files, which opens the door for phishing schemes and malicious links picked up from social media use.

Scope of Work

The duties of local entities continue to expand due to the growth of populations, the need for direct public engagement and the changes in economic resources. As workloads increase, feasible organizational solutions are a critical priority.  

Unfunded Liabilities

Towns and cities lack the necessary funds to keep up will all the responsibilities required of them. Tight budgets leave little revenue to handle serious issues that arise.

What Are Effective Risk Strategies?

Developing methods to deal with risk is imperative for municipalities. These are ways to formulate risk-awareness protocols:

• Develop strong leadership: Strong leaders in all areas of local government are crucial for establishing priorities and meeting objectives related to risk.
• Educate employees: Employees who participate in training seminars and conferences can implement what they learn by building practices into their work teams.
• Form partnerships: Partnerships allow local governments to assimilate helpful risk management ideas from other public and private organizations and businesses which saves time and revenue.
• Identify potential hazards: Trends data analysis is a valuable way to predict and prevent safety issues.
• Implement loss controls: Municipalities can carry out effective loss control practices which reduce claims by diminishing risk.
• Support better workplace culture: Culture shifts in the workplace are essential for safety and loss prevention. Giving people the knowledge and tools to make changes in their work areas boosts willful participation.

How Do Municipalities Develop a Positive Risk Culture?

Positive risk culture is built by equipping and encouraging employees to manage risk throughout their daily activities. This is created through open communication in a work environment where personnel can express concerns, provide feedback and share ideas. This process affects positive change and fosters safety.

Risk management programs define workable strategies to meet the ever-changing needs of local governments. Insurance tools cover the unique liabilities assumed by municipalities.

About PGUI 

Professional Governmental Underwriters, Inc., is a full-service risk management company dedicated to assisting public, educational and non-profit entities in the management of their professional liability exposures including educators liability insurance. We are dedicated to providing state-of-the-art professional underwriting management and loss control advisory services on behalf of our designated carriers. For more information, call us toll-free at (800) 586-6502.