Benjamin Evans, ARM Executive Director Risk Management and Insurance University of Pennsylvania The Risk Landscape

RISK MANAGEMENT ON THE RISE URMIA 2013 Phoenix #URMIA2013 Trends and Challenges Trends International Internships Developing Countries Rural Areas Adequate and “vetted” Housing Single vs. Group Travel Heavy Concentration of Summer Programs Decentralized Environment Lack of Control Short-term Treks Faculty Led or Student Led 2

RISK MANAGEMENT ON THE RISE URMIA 2013 Phoenix #URMIA2013 Trends and Challenges Challenges Emerging Economies 3

RISK MANAGEMENT ON THE RISE URMIA 2013 Phoenix #URMIA2013 Trends and Challenges Challenges Student Entrepreneurship Sponsored Travel vs. Independent Travel Misalignment of Understanding Risk Institutional Risk Academic Experience Risk Management is responsibility of “Corporate” not “Academic Programs” 4

RISK MANAGEMENT ON THE RISE URMIA 2013 Phoenix #URMIA2013 Programmatic Issues Risk Health and Safety of Student(s) Political Climate of Destination VS. Reward Academic Experience University Partnerships International Growth (enlarge the footprint) 5

RISK MANAGEMENT ON THE RISE URMIA 2013 Phoenix #URMIA2013 Understanding Areas of Risk (Institutional) Tax Compliance Activities outside of the U.S., Form 990, Schedule F Transparency of foreign activities to tax authorities Employer and Employee Organizational Income Tax Employee Support Immigration, Relocation, Evacuation, Cost of Living, Tax, Medical, Etc. Visas, Work Permits and Customs Insurance and Risk Management Financial Management Accounting Banking U.S. laws on Foreign Activities Restrictions based on specific facts Export Controls Cuba and Iran Human Subject research Environmental Health and Safety Charitable Giving Travel Advisories Intellectual Property 6

RISK MANAGEMENT ON THE RISE URMIA 2013 Phoenix #URMIA2013 Understanding Areas of Risk (Institutional) INTERNATIONAL PAYROLL COMPLIANCE How to collect and report data from various payment sources Split payroll issues How to report total compensation when delivered in two or more payroll systems? Necessary in order to remit proper Social Security taxes Host country payroll may be mandatory in whole or in part under local labor laws How to avoid paying taxes twice 7

RISK MANAGEMENT ON THE RISE URMIA 2013 Phoenix #URMIA2013 Understanding Areas of Risk (Institutional) U.S. PAYROLL REQUIREMENTS Federal Income Tax State Income Tax FICA Medicare Tax FUTA (Federal Unemployment Tax Act) SUTA (State Unemployment Tax Act) 8

RISK MANAGEMENT ON THE RISE URMIA 2013 Phoenix #URMIA2013 Understanding Areas of Risk (Institutional) CORPORATE STRUCTURAL ISSUES Can the activity be deemed as doing business within a foreign jurisdiction? Register as a Branch or Representative Office Implicate various filings and reporting Creation of a subsidiary of the University may be advisable Wholly Owned Foreign Entity (WOFE) 9

RISK MANAGEMENT ON THE RISE URMIA 2013 Phoenix #URMIA2013 Risk Mitigation Study Abroad Departments Site Visits by Academic Program Directors Frequency of Visits (once/twice a year) Site Visits by Study Abroad Administration Director of Study Abroad Associate and Assistant Directors International Travel Guidance Information Sharing with Partner Schools 10

RISK MANAGEMENT ON THE RISE URMIA 2013 Phoenix #URMIA2013 Risk Mitigation Government Resources U.S. Department of State Transportation Security Administration Overseas Security Advisory Council (OSAC) Centers for Disease Control and Prevention (CDC) World Health Organization (WHO) Higher Education Center for Alcohol, Drug Abuse, and Violence Prevention 11

RISK MANAGEMENT ON THE RISE URMIA 2013 Phoenix #URMIA2013 Risk Mitigation Security Information Services Stratfor Control Risks I-Jet Eurasia Group Kroll & Associates DRUM Ackerman Group Others Travel Assistance and Tracking International SOS Fron+ierMEDEX HTH Worldwide AIG Travel Guard Global Rescue CISI Terra Dotta Others 12

RISK MANAGEMENT ON THE RISE URMIA 2013 Phoenix #URMIA2013 Risk Mitigation 13

RISK MANAGEMENT ON THE RISE URMIA 2013 Phoenix #URMIA2013 QUESTIONS 14