The board believes the district must identify and measure risks of loss due to the damage or destruction of district property or to claims against the district by others claiming to have been harmed by the action or inaction of the district, its officers or staff. A risk management program shall be implemented to reduce or eliminate risks where possible, to determine which risks the district can afford to assume and to transfer to an insurance company those risks which the district does not wish to assume or cannot economically afford to assume. Such a program shall consider the benefits, if any, of joining with other units of local government for joint purchasing of insurance, joint self-funding, joint self-insuring or joint employment of a risk manager. The superintendent shall assign the primary responsibility for the administration and supervision of the risk management program to a single person. The board shall review the status of the risk management program each year.
The district shall purchase and pay for surety bonds for the superintendent, business manager and such other staff and in such amounts as the board shall from time to time determine to be necessary for honest performance of the staff in the conduct of the district's financial operations. Such bonds may include a deductible proviso not to exceed two percent of the employee's annual salary.