SELF-MANAGED CHALLENGES M Managing risk is a challenge for all associations, but it is especially difficult for self-managed communities because there is no professional property manager directly overseeing the activities of vendors and the conditions at the property. The board of trustees retains the responsibility for protecting the safety of unit owners and residents when they choose to self-manage. Even if the board employs a site manager or superintendent for the community, the burden of managing risks remains with the trustees. STRATEGY TO REDUCE EXPOSURE AND LIMIT LOSSES To protect the residents of the community from injuries and to manage the association risk from damage suits and insurance claims, the board needs to take the time to determine a strategy to reduce exposure to risks and to limit losses. The key steps in this process are as follows. » IDENTIFY RISKS ■ Measure frequency ■ Evaluate financial effect » AVOID RISK- STOP LOSS-CAUSING ACTIVITIES » CONTROL RISK ■ Use safety programs ■ Implement loss reduction plans ■ Emergency preparedness » RETAIN RISK AND SELF-INSURE » TRANSFER RISK TO THIRD PARTIES » MONITOR RESULTS OF RISK MANAGEMENT STRATEGIES IDENTIFYING AND MEASURING RISK To properly manage risks, the self-managed board must know what the risks are. It is necessary to take the time to walk the property and take note of both the physical structure and operating equipment of the association. ■ Check for trip hazards due to deteriorating pavement on sidewalks, parking lots, and roadways. Inspect to make sure that interior hall tiles are not damaged and breaking up and that stair treads are not detached or missing. Make sure the common hallway carpet is secured and handrails are in place as required by the building code. Make a list 36 CONDOMEDIA