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After months of battling the COVID-19 pandemic across the country, non-profit boards are reeling under the effects of having to make quick decisions and offering the most support possible to their organization and communities.
While participating in a non-for-profit board of directors is a great way to support organizations in the community, the pandemic has made navigating these responsibilities challenging.
The Cowan Insurance Group, in collaboration with Capacity Canada, conducted an exclusive webinar focusing on the responsibilities of a non-for-profit board in this rapidly changing landscape.
On October 22, the virtual event saw industry leaders and experts shed light on risk management and the boards changing responsibility while battling COVID-19.
Fred Galloway, a governance expert and faculty member with Capacity Canada, believes it is essential for the boards to monitor performances and self-evaluate. Only then can they maximize returns, manage risk and minimize their use of resources. “Boards often don’t ask tough questions and become reliant on the management. Instead, boards should reach out for expert advice, monitor, and evaluate performances to make informed decisions.”
It is during the time of crisis that non-profit board members are incredibly important. They have the duty of care’ – making well-informed decisions. The ‘duty of loyalty’ – act in the organization’s best interest and not take advantage of their position. And the ‘duty of obedience’ – to obey the law.
According to Doug Tweddle, commercial account executive for Cowan Insurance Group, it is essential to understand the connection between the governance responsibilities of the non-profit boards and risk management.
Vicki Baulk, commercial account executive, Cowan Insurance Group, explained how a Directors and Officers Liability Policy could protect the board members and the organization. “Many organizations are under financial duress. We have also seen a fall in the availability of funds. It is important to understand how to manage and insure that risk.”
While each group involved in a non-profit plays a vital role in its functioning, the board clearly plays the central part. As Baulk puts it, “It is the body that holds the responsibility of the organization.” The pandemic has shifted priorities, and the board needs to evaluate and reframe its policies to serve their organization and their communities best. It needs to create a balance where the management can achieve its goals as a result of these policies.
The webinar saw over 300 registrants affirm how seriously board members take their responsibilities.
