University Risk Management Initiative Enterprise Risk Management 1

University Risk Management Initiative Enterprise Risk Management (ERM) is a system or process to deal with all risks facing an entire organization. The University Risk Management Initiative (URMI) is a systematic means to manage enterprise wide risks at OHIO. 2

University Risk Management Initiative We do not want to eliminate all risk because we cannot have a reward without taking a risk. However, we can take actions to manage the amount of risk we need to take compared to the reward we hope to achieve. 3

University Risk Management Initiative Why the URMI? If we can tame uncertainty and improve the decisions made in regard to risk, we will significantly improve our ability to accomplish our goals. URMI builds upon the benefits of traditional Risk Management by applying its principles to operational hazards, compliance, reputation and economic risks. 4

University Risk Management Initiative The Five Steps of Managing Risk 1.Indentifying the Risks We cannot manage or control the risk until we know what it is. 2.Assessing the Risks Organizing the risks so we can better understand them. 3.Evaluating the Risks Prioritizing the list of risks to ensure the most effective utilization of available resources. 4.Mitigating the Risk Strategies to make the risks acceptable. 5.Monitoring Follow-up to ensure the plans are carried out. 5

Threats To Higher Education WHY URMI Kent State shooting (1970) Texas A&M bonfire (1999) Seaton Hall fire (2000) World Trade Center (2001) Grover Water loss (2006) OU Computer Security (2006) Virginia Tech shooting (2007) Wall Street AIG (2008) Athens County Tornado (near miss) (2010) Clippinger & Brough Fire losses (2011) 6

University Risk Management Initiative The Bottom Line… The URMI will allow OHIO to better identify, understand and manage all risk associated with achieving our mission. 7

University Risk Management Initiative Thank You! 8