"Protecting Your Condominium Community: The Importance of an Active Risk Management Program
As the popularity of condominium living continues to grow, so too does the need for effective risk management programs. Condominium communities face a variety of risks that can impact both the safety of residents and the financial and reputational well-being of the corporation.
In this blog, we will discuss why condominium communities should have an active risk management program and emphasize the importance of having documentation to prove compliance and defend against potential losses or claims.
First, let's define what we mean by a risk management program. A risk management program is a proactive approach to identifying, assessing, and managing risks that could impact the community. The goal is to minimize the likelihood and severity of losses and protect the corporation’s assets and the safety of its residents.
One of the most important reasons for a condominium community to have an active risk management program is to ensure compliance with building / fire safey codes and other regulations. Compliance is critical because failure to comply can result in fines, legal action, or even loss of insurance coverage. A risk management program can help identify potential code violations and ensure that necessary repairs or upgrades are made in a timely manner. Documentation of compliance can also provide evidence of the Corporation’s due diligence in the event of a claim or lawsuit. Either way, it is this documentation that serves as evidence.
In addition to compliance, a risk management program can help prevent accidents and injuries. Common risks in condominium communities include slips and falls, fires, and water damage. By identifying potential hazards and taking steps to eliminate or mitigate them, the Corporation can actually reduce the likelihood of accidents and injuries. Regular maintenance and inspections can also help identify issues before they become serious problems – often, saving money.
Another important reason for a risk management program is to protect the financial well-being of the association. Insurance coverage is essential, but it is not a guarantee against financial loss. Claims can still result in increased premiums, deductibles, or even non-renewal of coverage. By identifying and mitigating risks, a condominium Corporation can reduce the likelihood and severity of claims. While these programs have a onetime set up fee to design and develop these programs, once completed and implemented at your Condominium, these programs can provide annual returns on investments to everyone in the community; Protecting condominium employees, residents, visitors and service providers.
In conclusion, an active risk management program is essential for condominium communities to ensure compliance with regulations, prevent accidents and injuries, and have evidence of the corporation’s commitment to community safety and wellbeing.
National Life Safety Group is an industry leading consultancy firm, specializing in public and workplace safety, with a focus on best practices in facility fire safety, life safety, physical security and emergency management.