RISK MANAGEMENT

2. RISKMANAGEMENT

3. TOPICS & Tasks for Today • About Me (brief) • Slightly Elevate Your Blood Pressure • Risk Today • Insurance & Hazards Lesson • Primary Risks & Secondary Risks • Steps To Reduce & Manage Primary Risks • Identify Secondary Risks • Property Related Risks • Punitive Damages • Background Checks & Screening

4. About Me: First Life LAW ENFORCEMENT & FIRE/EMT ACCOMPLISHMENTS • Correctional Officer Supervisor • Patrol Officer • Fire Fighter / EMT • Deputy Sheriff • Crime Scene Investigator • Latent Print Examiner • Agricultural Crime Unit, Sergeant • Tactical Supervisor, Sergeant • County Wide Emergency Response Coordinator • Road Patrol Supervisor, First Sergeant • Training Officer, First Sergeant • State Law Enforcement Lieutenant • Inspector General’s Office, Captain • State Law Enforcement Captain

5. Second Life • West Florida District of the Assemblies of God Missionary • SonshineConference • Pastor of Sidewalk Sunday Schools 2200 Kids a week • 4 Buses, 6 Vans, 40 Volunteers, 5 Full Time Employees • Pastor of 50 Member Inner City Church • Royal Rangers • Lots of Bible Studies • Private Detective Investigations and Litigation Support for Churches and Non Profits

6. Third Life ADMINISTRATIVE MINISTRY EXPERIENCE 15 YEARS • Director of Administration & Operations • Internal & External Security & Investigations • Fleet & Safety Management • Background Investigations & Verification • Accident & Injury Investigations • Personnel & Facilities Management • Director of Special Operations • Fraud Detection & Prevention • Insurance Evaluation & Procurement • Risk Assessment & Management • Contractor & Vendor Due Diligence • Attorney & Litigation Support • Director of Risk Management • Fleet Management for 71 Non-Profit Vehicle Corporations • Driver Screening & Background Investigations • Risk Reviews • Accident Scene Analysis

7. Current Life • Regeneration Network Ministries • Bishop Rick Fountain • Rapid Deployment Force • Church Knights • Ministry Support Services • Stress Relievers • Blacksmith Shop • Beekeeper 120 colonies

8. Stress Release

9. Commercial Break Church Knights provides Risk Management & Investigative services. Our Specialties: • Seminars & Training • Background reviews & screening • Risk Assessment • Due diligence contractor & vendor reviews • Litigation Support • Immigration & Religious Visa Processing • Internal & external Investigations • There is a complete list of our services in the handout. We are not the only entity that provides these services but we are the only entity that provides these services that is operated as a ministry and tithes. We provide services to World Missions and several churches in the Denomination.

10. SLIDES & HANDOUTS • I have tried to keep the slides to the point and put most of the information in the handouts. • If a slide is wordy, it is because of the importance of the topic. Sorry, but the pressure points need to be presented. • In the front of the handout is a copy of the presentation. The next section is additional information on the topics covered as well as a list of the services and support we provide.

11. Blog &Email www.churchknights.com churchknights@aol.com We may not be able to cover everything here today. We will have a Q & A time at lunch. Please feel free to email or use the blog for questions. Phone number & email are listed in the handout. We will be posting topics and information on the blog weekly.

12. Insurance Lesson • Big misunderstanding among leadership is the belief that insurance is risk management. • Insurance is a form of risk financing. • Insurance is the transfer of financial responsibility associated with a potential risk or loss to an insurance company. You pay the insurance carrier to take the risk. • Insurance coverage. What are you and the church covered for???????? • To late to find out after the incident, disaster or injury.

13. Two types of risk in the insurance world: Pure Risk is a risk that can only result in a loss or no change. This is the only type of risk an insurance company will cover. Speculative Risk involves the opportunity for either a loss or gain. Like gambling, no insurance carrier will cover a speculative risk. The intent of insurance is to return the insured to the pre-loss condition, and not to gain by a claim.

14. In ministry there are two additional risks that are never spoken of in the risk management arena.Faith Risk, Christians have always been persecuted and faced many perils through out history and in our present times. Faith risk is an expected outcome from being faithful and obedient to God.Ministry Risk, By its nature the focus of ministry is not for profit or financial gain. Yet the leaders understand that ministry requires a substantial investment of time, funds and resources.Fully knowing that the ministry may or may not succeed.

15. Hazards are conditions or situations that increase the probability of a loss occurring. Traditionally, there are 3 types of Hazards: Physical: those arising from the material, structural or operational features of risk, apart from the managing persons. Moral: fraudulent, deception, hidden truths. Morale: increase the hazard presented by a risk with an indifferent attitude to the risk or loss because of the existence of assumed insurance coverage. Identify the Hazards

16. A fourth hazard has come into play because of the current mindset. In these days, a new and deadly hazard has emerged.

17. TheLEGAL HAZARD is a hazard of today’s mindset. You have no control or predictable method to deal with this hazard. The best way to deal with this hazard is manage the other hazards to reduce the risks so that a loss or injury does not occur. Survival of this hazard is based on the churches preparation, assessment , documentation and management in order to avoid this hazard.

18. END OF INSURANCE LESSON

19. Purpose of Risk Management • The purpose of Risk Management is to avoid or reduce PURE RISKS from occurring in the church and ministry. If the risk cannot be prevented, the secondary goal is to keep the impact to a minimum while embracing the Faith and Ministry Risks. • “I am the good shepherd. The good shepherd lays down his life for the sheep.” John 10:11, NIV.

20. RISK TODAY • Risk Assessment & Risk Management in the Church and Ministry is not an option in today’s mainstream society. • Purchasing Insurance is not Risk Management, insurance is a form of risk financing. • The Key focus of risk management is to prevent the risk from happening which has no relationship to insurance.

21. Risk management is the process to reduce risks that hurt people, damage property and harm ministry. The primary duty of the Pastor is to teach and proclaim the truths of God’s word. The secondary duty is the obligation to protect the innocent and vulnerable who have been invited and entrusted to his care and the care of the church itself. There is a duty owed.

22. Internal Risks in the Church Attitude Risk: • It can’t happen here! No church or ministry is immune from loss • Passive acceptance “I will have that fixed next month” Accidents & losses strike without warning • Fear of alienation Which is worse, severe loss, negative publicity • Too cumbersome, costs to much time and money Properly organized risk management is manageable inany church or ministry

23. Most likely, The loss or incident will create more stress and drain more resources from the ministry or church than the maintenance of a risk management plan.

24. Primary Risks • Negligent Selection of Church Workers • Negligent Retention of Church Staff • Negligent Supervision of Church Staff & Church Activities • Employment Procedures and Laws

25. SECONDARY RISKS • Counseling (Rising into the Primary Risk) • Child Abuse Documentation & Reporting • Personal Liability of Church Board Members • Personal Liability of the Pastor • Formal Organization of the Church or Ministry • Securities Law Violations • Undue Influence

26. PROPERTY RELATED RISKS • Failure to maintain property and equipment in a safe manner. • Contractor Contracts, Insurances, Bonds and Licenses • Verify License & Insurance • Verify Workman’s Compensation Coverage • Check for Liens & Judgments • Read the contract

27. PUNITIVE DAMAGES The court can award punitive damages for conduct that amounts to gross negligence. Punitive damages are damages awarded by a jury “in addition to compensation for a loss sustained, in order to punish, and make an example of, the wrongdoer.“ Reckless inattention to risks can lead to punitive damages. Such damages are not normally covered under the churches liability insurance policy.

28. Jail Time Depending on the State and the details of the incident, there is usually no jail time. However, jail time will give you an opportunity to preach the Gospel to a captive audience as well as start a new prison ministry.

29. Negligence Negligence: The carelessness or failure to exercise reasonable care. The words negligence & negligent appears frequently in the list of Primary Risks. A short definition means less loopholes for your attorney to climb through. BEWARE.

30. TWIN BEES & FUTURE MISSIONARIES

31. Primary Risk #1Negligent Selection of Church Workers • Carelessness or a failure to exercise reasonable care in the selection of a worker or a minister. • Can occur in several ways: • Drivers, • Bookkeepers • Secretaries • Maintenance Staff • Ministers • Contractors

32. Most Significant Risk • Occurs in the selection of workers, volunteers and ministers who will be working with minors. • There is substantial documentation of churches sued on the basis of negligent selection because of poor or no background review or screening and a child or minor was abused or molested. • After all the recent negative publicity only one third of the churches do any screening of people working with children and minors.

33. WARNING: Astaggering number of churches are exposing innocent lives to trauma that may effect them for a lifetime, as well as exposing the church itself to potentially astronomical jury verdicts that may not be fully covered by the church’s liability insurance policy. BEWARE: Sex and Sexual abuse related incidents are church & ministry slayers.

34. A Few Simple Precautions Fortunately there are some simple precautions and procedures that can be performed that will significantly reduce the possibility of such an incident from occurring. It does help when the jury hears that you did have a procedure in place for all staff, ministers and volunteers and the procedures were adhered to. Negligent Selection pays a big part in the other Primary Risks.

35. 1. Written Application • First Line of Defense, just plain smart. • Why would you let someone work with the children and you do not even know where they live? • Always have a written application. • Full Name, address and contact information • List of prior or current organization or church associations • Permission form for background review and screening • Permission to do a credit check if the position has any financial responsibility • Full explanation of any prior criminal convictions • Names & contact info for references

36. Just how common is it for someone applying for a church position to have a criminal background? Pinkerton Services Group: Church applicants have about the same conviction hit rate (4.9 percent) as do applicants for any position. The data is based on 2,500 church applicants. I have placed a list of the types of convictions in the handout.

37. 2. A Rule of Time • Some churches have rules in place where a worker has to be a member or participant in churches activities for a specific amount of time before being considered for a position. Such as 6 months for example. • Volunteers should be considered employees, as the court will see it that way. • Such a rule will allow opportunity to observe applicants and prevent incidents from occurring.

38. 3. Contact References • Contact each organization listed • Contact the persons listed as references • Ask if this person is suitable to work with children & minors • Your church should require a brief written or email questionnaire in reference to the applicant. • This is free stuff, it takes a few minutes, why pass it up. • I have called high schools to obtain behavior history.

39. 4. Criminal Records Checks • Several states require criminal records checks on persons who work with children and youth workers. • Check to see if there is mandatory requirements in your state. • A criminal records check will further reduce the churches risk of being liable for negligent selection. • Not all criminal records checks are created equal!!!!!

40. This is Important Information • Unless you have access to the National Crime Information Center, NCIC, it is almost impossible to conduct a national check in one place. • In some jurisdictions, Law Enforcement will allow a check for children and youth workers. • Cheap On-line Checks, wasting your funds. • There are many entities that efficiently conduct background checks, we are not the only one out there. • Need to follow up with phone calls and physically pull records depending on the significance of the applicant.

41. Background Checks • Very inexpensive insurance. • Be sure to keep all documents received from provider with the application for future reference. • There is no one place available to the public to get a complete check. Be sure to check with the provider to see if they use several data bases to create a nationwide check. • Payroll Services, local checks only, not dependable.

42. Screening & Reference Verification • This very important. • You might be surprised what you find out. • Once the decision is made that the applicant is in the running the next step needs to be taken. • Contact references, schools, churches etc. and have a report of the contacts and finding attached to the application for future reference.

43. 5. Verify Diplomas, Certificates and Licenses • I can make you anything you want to be on paper • Diplomas, Licenses and Certificates are all over the World Wide Web • Take a moment to verify these documents • New England Church Case • Side Note: Verify not only for possible workers but also for contractors that you are considering to perform work.

44. 6. Interview • After the application and attached documents have been reviewed you must prepare for the interview. • Depending on the established procedure, you might be interviewing before or after the references have been contacted and provided information verified. • There may be items that requireexplanation. For instance an arrest 20 years ago. • Make notes, date the notes, place the notes in the file with the application.

45. Primary Risk #2Negligent Retention of Staff Even if reasonable care was executed in the selection process, a church may be held liable for misconduct if a worker was retained after information was received indicating the person posed a risk and other may be harmed. It is difficult to eliminate this risk, but the risk can be reduced with certain procedures.

46. Investigate • When credible information surfaces, a complete and immediate investigation must be initiated. • Do not wait, investigate. Have a plan. Get written statements right away before rumor becomes truth. • Law Enforcement may need to be contacted depending on the severity of the allegations. • Outside professional resources such as a qualified private investigator or attorney can be contacted to see if there are grounds to contact local authorities.

47. BEWARE • The church has been put on notice, a risk exists. • If no action is taken, or the incident is sweep under the rug and a similar incident occurs, get the check book out. • The church may be liable for negligent retention.

48. Restrictions If the investigation produces credible evidence to support the allegation, the church can: • Reduce the risk of negligent retention by imposing appropriate restrictions on the alleged worker • Restrictions should depend on the number of incidents, the circumstances, including the nature and severity of the allegations. • Consider the strength of the evidence.

49. LIMIT SECOND CHANCES • Church Leaders often consider mercy when making worker or minister decisions. • This can be used as supporting evidence in a negligent retention or selection claim. • By giving the applicant or worker a second chance with knowledge of a prior misconduct and the misconduct occurs again it shall be conceived that misconduct is acceptable. • What the church views as mercy may be viewed as negligence or gross negligence by a jury.

50. BEWARE Churches that take no action and ignore the allegations of inappropriate behavior by ministers or workers face multiple risks: • Negligent Retention • Liability based on the fact of no action “ratifies” the ministers or workers behavior • Do not create evidence that can be used against you • Punitive Damages, above insurance coverage • Possible personal liability for the ministers superiors and the members of the governing board.