1. Risk Management Learn, Understand, Educate Revised March 2014

2. What will you get from this presentation? How Risk Management can affect your Chapter and your everyday life. How to reduce common risks How to create and implement Risk Management policy How to utilize resources and programs provided by the National Office

4. What is risk?

5. Risk: What is it? Definition Possibility of loss or injury: peril Someone or something that creates or suggests a hazard (from www.merriam-webster.com) Why take risk? Example: speeding to go with the flow of traffic

6. Risk: What happens? Ripple effect Common risks lead to uncommon consequences Example: house gatherings Alcohol Property damage Fire code - capacity Unforeseen accidents

7. What are some assets of the Fraternity? Who does risk management affect?

8. Who does it affect? National Organization The very existence of Phi Sigma Pi National Headquarters building Money Reputation - good name

9. Who does it affect? Chapters Existence as a Chapter - Charter Finances and other assets Chapter's good standing with National Fraternity

10. Who does it affect? Brothers Personal family assets - personal wealth Tarnish your good name Good standing with National Fraternity

11. Who is responsible? Liable Obligated according to law or equity Negligent Failing to exercise the care expected of a reasonably prudent person in like circumstance o Inaction o Policy without enforcement

12. Who is responsible? People most commonly named in lawsuits All Chapter officers/chairs Chapter President individually Specific Chapter officers/chairs individually Negligent Brothers

13. Who is responsible? You Personal responsibility Your Brother's Keeper Event planners - committee Responsibility to plan safe events Planning ahead - communicating concerns

14. Who is responsible? Executive Board/Council Responsible for overseeing the safe planning of events Responsible for communicating expectations of events Chapter as a Whole Responsible for behavior becoming of Brothers

15. Who is responsible? National Fraternity Council and Staff are responsible to ensure proper education create good policy enforce policy fairly maintain insurance premium not being negligent

16. Who is responsible? Everyone's collective efforts keeps the Brotherhood safe.

17. Unofficial versus Official Events Ultimately, up to the judge in hindsight of an incident Questions to consider: o Premeditated? o Discussed at meeting? o Majority of Chapter knew about it? o Chapter funds used? o Planned by Officers? o Before or after an event? o Wearing letters? o Property owned or leased by Brothers?

18. Unofficial versus Official Events Would an outsider view this as a Phi Sigma Pi Chapter Event if they were to walk by? –The University President? –A fellow student? –Your parents? *If you answered yes to any of the above questions, then the event can probably be considered an official Phi Sigma Pi Chapter event.

19. Social Host Liability When you invite people into your home, you are legally responsible to: Provide safe atmosphere for guests Follow local and state laws Provide safe transport home

20. What are some types of risk? Types of Risk

21. Physical Reputational Emotional Financial Facilities

22. Exposures to Risk What are some common risks?

23. Exposures to Risk Alcohol ProblemsSolutions Overconsumption Unruly behavior Crowd control Underage drinking 3 rd Party bartender Serve food and drinks (non-alcoholic) Unruly behaviorCrowd control with event guest list and 3 rd party security Hazards of locationChoose safe location Drinking and DrivingProvide transportation

24. Exposures to Risk Hazing National Constitution definition: “Hazing shall be defined as, but not limited to, any action taken or situation created, intentionally, to produce mental or physical discomfort, embarrassment, harassment and ridicule, regardless of the person’s willingness to participate.” Problems: Alcohol Dating Initiates Proving yourself Perception

25. How to Evaluate Your Event Is this activity an educational experience? Does this activity promote and conform to the ideals and values of Phi Sigma Pi Will this activity increase feelings of Brotherhood between new and initiated members of the chapter? Would you be willing to defend the merit of this activity in a court of law?

26. How to Evaluate Your Event Would you be willing to allow parents to witness this activity? A judge? The College/University President? Is it an activity that new and initiated members participate in together? Does the activity meet both the spirit and letter of the standards prohibiting hazing?

27. If you answer "no" to any of these questions, it's probably hazing!

28. Exposures to Risk Contracts Intended to transfer liability Don’t transfer it the wrong way! Be careful – consult National Office before signing Ensure third party vendor is licensed and insured. Liability forms – a façade! Bad: Can still be sued Good: sign to acknowledge the risk

29. Exposures to Risk Sexual Assault and Harassment National Risk Management Policy states: –“Sexual harassment and abuse is illegal and any member who sexually abuses or harasses another member, initiate, or guest of the Fraternity is criminally and personally liable for his/her own actions.” Greater perceived risk with Co-Ed Fraternity Must be diligent in prevention

30. Risk Management Circle of Risk Management Exposure identification Analyze and evaluate Reducing and controlling exposures Possible losses Implementing and monitoring of RM process

31. Risk Management Exposure Identification Analyze and Evaluate Reducing and controlling exposures Possible financial loss Implementing and monitoring of RM Policy

32. Your Chapter’s Risk Management Program Put it in motion!

33. Your Chapter’s Risk Management Program Creating Policy Template (or start from scratch) Include: –Prohibitions –Restrictions –Procedure –What to do when policy is broken? Disciplinary action Cannot contradict higher authorities –National Constitution, Risk Management Policy –School policies –Laws: Local and state

34. Your Chapter’s Risk Management Program Implement Policy President –Designated Risk Management Adviser Idea: Create Risk Management Adviser –Assist the President Idea: Create Standards Committee –Assist with duties

35. Your Chapter’s Risk Management Program Enforce Policy Proactive, not loopholes Expectations –Behavior unbecoming of a Brother –Can’t insure the “bad apples” Consistency and fairness Education and prevention

36. Insurance The National Office has insurance to cover Chapters and Brothers who act responsibly. However, the insurance does not cover “bad apples” – Intentional acts – Criminal acts – Hazing – Sexual Abuse

37. Insurance Resources Certificate of Insurance Requests –Additional Insured available o Reach out to the National Office for assistance when planning the following types of events: o Co-sponsored with another organization o Athletic Event o Working with Animals o Alcohol will be present

38. National Risk Management Policy (NRMP) Impact on Inter-Chapter Events Highlights of new policy –Collection of Emergency Contact Information –Liability Waivers for Athletic Events Only –Initiates may attend at Home Chapter Events –Alcohol Permitted: BYOB or Third Party

39. NRMP – Planning Form (PF) When Should I Submit a PF to the National Office? –Signing a Contract with certain requirements –Third Party Transportation –3x Chapter Membership Attendance or –50+ non-Members will be in attendance –Athletic Element

40. Summing it up Risk management o Matters o Affects everybody o More than just alcohol and hazing o Not about finding loopholes; being proactive - don’t break law o Creating and enforcing policies

41. Things to remember.. Bad things don’t just happen Don’t risk more than you can afford Consider the odds Insurance is no substitute for loss control Safety is number 1: If someone is unresponsive from alcohol, call 911

42. Questions? Consultant name: Email Phone

43. Thank you for your time and attention!