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Risk Management and Insurance Betty Coulter, RMPE Director of Risk Management February 7, 2014
Risk Management and Insurance
Betty Coulter, RMPEDirector of Risk ManagementFebruary 7, 2014
What is Risk Management ?
The process of making and implementing decisions that will minimize the adverse effects of accidental losses on an organization.
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The Evolution of Risk Management
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Risk is bad – focus is on transferring risk
Risk is an expense – focus is on reducing cost-of-risk
Risk is uncertainty – focus is on optimizing risk to achieve goals
Enterprise Risk Management• A wide range of risks are discussed
and reviewed, including reputational, human capital, strategic and operational
• Aligns RM process with strategy and mission
• May include “upside risks” (opportunities)
• Helps manage growth, allocate capital & resources
• Risks are owned by all & mitigated at the department level
• Many risk mitigation & analytical tools available
• Risk Manager is the risk facilitator and leader
Transactional Approach • Purchase insurance to cover risks• Hazard-based risk identification and
controls• Compliance issues addressed
separately• Safety & emergency mgmt handled
separately• “Silo” approach – risk mgmt is not
integrated across the organization• Risk Manager is the insurance buyer
A Broader Risk Mgmt Approach• Greater use of alternative risk
financing techniques• More proactive about preventing
and reducing risks• Integrates claims mgmt, contracts
review, special event RM, insurance and risk transfer techniques
• Cost allocation used for education and accountability
• More collaboration – as depts are willing
• Risk Manager may be the risk owner
Transactional
Strategic
Integrated
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Risk Management and Insurance Program Administration
Risk Assessment – Current and future operations/ activitiesProvide Risk Management ConsultationClaims ManagementContract ReviewPolicy Development
Minors on CampusDefensive Driving/MVR
TrainingRMSS Emergency ManualMinors on Campus Training ManualVan Certification Training
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Risk Management and InsuranceProgram Administration
UNCC Insurance ProgramProperty, Auto, Workers Compensation, ContentsOther – Foundation ProgramsTort Liability and Defense of Employees Act
Risk Financing StrategiesRisk Transfer
Contractual Insurance placement/purchaseTULIP
RetentionAvoidance
Record ManagementInsurance Costs Allocation
Thank You
Risk Management & InsuranceDepartment of Risk Management, Safety & Security
Betty Coulter, [email protected]
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Continuity of Operations Plans (COOP)
Shawn Kiley, MPARisk Management, Safety, & SecurityOffice of Business Continuity Planning
February 7, 2014
Continuity PlanningWhy do we (Institutions of Higher Education, IHE)
need to worry about continuity?
Impact to campus, downtimeBusiness Continuity: Administrative Services, Research, Athletics, Auxiliary services, Housing, ParkingAcademic Continuity: Online Courses, Classroom/Lab Spacing
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Why Do Continuity Planning?
It’s good business practiceProtects assets, cuts emergency costs, protects image
Part of risk management processPrevent, protect, mitigate, prepare, respond, recoverIdentify trends and predict risks
Promotes resiliencyAbility of an organization to absorb the impact of a disaster, and continue to function at a minimum acceptable levelOften the outcome of effective planning
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Boston Marathon BombingBoston on Lockdown
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“City-wide shelter-in-place is advised. As this investigation unfolds, we are advising all city-wide to shelter-in-place. Please understand we have an armed and dangerous person(s) still at large and police are actively pursing every lead in this active emergency event….All MBTA service remains suspended at this time.”
- April 19, 2013, 8:34 AM, ALERTBoston
RadicalCartogrophy.net
2012: Hurricane Sandy
NOAA Satellite Image, October 29, 2012.
Inclement Weather
Snow storms (2010) in DC area, 7-day closure
UNC Charlotte (2011) snow storm 3-day closureUNC Charlotte (2014) snow storm2-day closure
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Analogous to a Disaster
If UNCC hosted DNC security and volunteers1,500 beds proposed
Impact to campusOperational: Academic Semester, Move-in, various activitiesFinancial: Bookstore , Food Services, Housing, & Parking costs
Cost$3 Million to recover losses
Morrill, Jim. “UNCC Offers Dorms to DNC,” The Charlotte Observer (4/12/11)
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What is Business Continuity?
Continuity of Operations Plans (COOP)Business Impact Analysis (BIA)Risk Assessment (RA)Business Continuity Plan (BCP)
It is not:Emergency Management (EM)Disaster Recovery (DR)
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Disaster-Impact Timeline
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Business Continuity Strategy
Executive Level Buy-In
Unit-Level COOPs
Department-Level BIAs
Department-Level Risk Assessment
Test, Training and Exercise Program (TTE)
Evaluation/Audit
BC Strategy
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Continuity of Operations Plans (COOP)
Identify communications (including redundant methods)List and confirm alternate locations and facilities for conducting operationsResponse Plans (damage to vital records)
How they are kept (paper vs. electronic)Where they are kept (open file vs. fireproof safe)How to recover if they are damaged
Allow for succession and delegation of authority
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Business Impact Analysis (BIA)
Determine the effect of interrupted services on each unitShort and long-term effects of a disaster
Service Revenue/expenses Goodwill
Develops a strategy for the business unit and parent organization, and entire institution
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Business Continuity Plan (BCP)
Integrate information from COOP, BIA, and Risk Assessment, with strategies to develop plans for continuity
Risk Assessment: vulnerabilities, gaps & mitigationResource allocation for prioritized functions
Based on prioritization of critical needPromotes efficiency, effectiveness, customer service
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The University of North Carolina at Charlotte
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Continuity Challenges
Continuing/restoring essential operations during/after emergency
What is essential in an academic setting?Education: classroom and online classesResearch activitiesAdministrative tasksAthletics and public activitiesSupport and other functions
How to prioritize resumption of services?
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Completing your COOP
List all of the critical functions/processes within the unitEffect of loss of function/process
Loss of revenue/increased costs (cost per day)Legal liability, fines/penalties, public harmLoss of goodwill, other intangibles
Ability to operate at reduced efficiencyRecovery Time Objective (RTO)Key dependenciesContingency plans
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Interdependency Map
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Relationships & Communication
University partnersColleges, departments, and units
Government partnersLocal, county, state, federalConstituent institutions of UNC System
Private sector partners (including non-Profits)Hospitals, CRI-campus, American Red Cross
AssociationsProfessional organizations
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Workshop (25 Minutes)
Scenario Handout
Read and discuss the scenario/questionsGroups of 5 or 6Select a group representative to report out what you have discussed
15 minutes to discuss; 10 minutes to report out
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Thank You
Office of Business Continuity PlanningDepartment of Risk Management, Safety & Security
Shawn Kiley, [email protected]
www.bcp.uncc.edu
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