Introduction to Enterprise Risk Management (“ERM”)

2 Dept. of Enterprise Risk Management Anita Ingram, Assistant Vice President & Chief Risk Officer Primary functions involve integrating risk responsibilities across the broad spectrum of operations, financial, strategic, compliance and reputational risks of the organization, weighing in on all risk management issues that directly impact the strategic direction of the University, and prioritizing the strategic risk management issues that directly impact the mission of the university. Kathleen Scrivens, Director Under general supervision from a designated administrator, oversees and directs the administration and management of the insurance risk, claims and loss control management program for the university and UC Health med mal and property. Todd Beekley, Associate Director Under general supervision from a designated administrator, assist in the administration and management of the risk, claims and loss control management program for the University. Jean Miller, Insurance Analyst Under general supervision from a designated administrator, purchase and maintain all property/casualty insurance programs at the University and underwrite all employee/ physicians in the practice plan corporations for the medical professional liability self-insurance program. Warren Meilicke, Senior Claims Analyst Under general supervision from a designated administrator, evaluate, investigate and settle commercial property, casualty and automobile claims. Develop and support loss control programs. Amanda Bill, Communications Program Coordinator Support the ERM function and program; track, analyze, and assess risk control efforts; develop & deliver ERM training; implement & support ERM information system platforms. Manage and coordinate departmental and ERM communications objectives. Valencia Williams (contractor) Under general supervision from a designated administrator, assist in the planning and coordination of administration and/or operational activities. Kenya Faulkner, VP for Legal Affairs and General Counsel (as of 11/1/2015) Who We Are?

What We Do? 3 Collect and analyze data from all departments across UC to identify risks Promote transparency and accountability to address risk holistically versus in silos Develop an ongoing monitoring process to ensure UC meets its mission and objectives Manage the insurance procurement and claims process

Why is this Important? Many internal and external factors cause uncertainty about our ability to achieve our objectives. This is RISK! All organizations exist to ACHIEVE their objectives 4 The key is to understand and manage these risks properly and strategically seize opportunities to PROPEL our mission FORWARD Our mission includes: Teaching, Research and Community Engagement

What is Risk? 5 Uncertainty about the potential outcome -from ISO P OSITIVE OUTCOME : B ENEFICIAL TO OUR MISSION N EGATIVE OUTCOME : A DVERSE TO OUR MISSION A practical analogy: An experiment in the lab can prove or disprove the hypothesis. A risk we willingly take to advance our learning!

How Do We Measure Risk? Risk is often assessed by the likelihood that an event would occur and the impact if it did occur. 6 We use a scale of 1-6 to “grade” the likelihood and impact, then plot the results on an x, y axis (as shown here) to determine where to focus our efforts.

How Do We Classify Risk? 7 Reputational Risks fall into these five basic categories and should be assessed and balanced continuously Strategic Compliance Operational Financial How will the public at large view this if covered by the news media? What are the potential losses or gains? How will our day to day operations be affected? Is it required by regulation or law? Is our short or long term success at stake?

8 What Risks Does UC Face? To name just a few!

What Can We Do About Risk? 9 Risk Opportunity Risk Together we can manage risk and ensure we meet our objectives! 1.Identify Risk What could go wrong? What would keep us from meeting our objective? 2.Plan for Risk What controls are in place or need to be implemented? Who is accountable or needs to be involved? 3.Periodically assess the effectiveness of our Plans to mitigate the risk and achieve our objectives. What worked well? What can we do better?

What Else Can We Do? 10 Leadership Support See Something, Say Something Culture Adequate Procedures Appropriate Insurance Relevant Training Robust Systems Clear Roles and Responsibilities Proactively Seek Guidance Progress Reviews Many risks are preventable! Here are some other ideas for assessing and implementing Risk Management in your area:

UC’s Third Century Mission & Objectives Communications Diversity Research Student Affairs Health Affairs and College of Medicine Risk Management and Compliance Safety and Reform Administration and Finance Development and Alumni Relations

Our office provides proactive consultation and assists with the assessment and mitigation of risk. We also procure insurance and process any associated claims. Contact information: How Can We Help You?