1. Risk Management 101 An Introductory Guide to Risk Management and Managing Risks

2. Definition of Risk danger possibility peril chance exposure jeopardy consequence hazard menace threat gamble We are concerned with the potential loss, including economic loss, human suffering, or that which may prevent the organization from being able to achieve its goals.

3. WHAT IS RISK MANAGEMENT? A conscious effort of planning, organizing, directing, and controlling resources and activities. To minimize the adverse effects of accidental loss at the LEAST POSSIBLE ACCEPTABLE COST.

4. Risk Management Decision Process Identify exposures Evaluate loss potential Select method Implement selected method Monitor results/ Modify methods

5. Types of Risk and Loss General Liability Workers’ Compensation Property Loss – building & contents Athletic Injury Business Interruption Institutional Reputation and Image Loss Contractual Activities Vehicle

6. Types of Risk and Loss continued Financial Risk Legal Liability Environmental Health & Safety Information Management Intellectual Property Student Activities Auxiliary Enterprises

7. CSURMA Joint powers authority (JPA) formed under CA Gov’t Code section 6500 et seq.; ultimately allows CSURMA to provide insurance programs, self- insurance programs, and related services to the 23 campuses, Chancellor’s Office, and auxiliaries. Separate legal entity from the CSU. Subject to open meetings (Bagley-Keene Meeting Act). California State University Risk Management Authority

8. Programs in the CSURMA General Liability Program Workers’ Compensation Program Master Property Program IDL/NDI/UI Program Athletic Injury Medical Expense Program (AIME)

9. Programs in the CSURMA continued Property – Inland Marine Program AGPIP – Auxiliary Group Purchase Insurance Program – create market clout among the CSU Auxiliary Organizations to drive premium costs down through group purchase of insurance. Student Health Insurance Program (CSUSHI) Foreign Travel Liability Program

10. Campus Risk Exposures On the Job Safety (internal & external) EPL Vehicle Accidents Vendors (contracts & product) Building Maintenance (repairs, IAQ, general maintenance, etc.) Facilities Use (internal & external) Reputation (internal & external)

11. The Claim Their’s Victim’s Compensation & Government Claims Your’s Victim’s Compensation & Government Claims Our’s CSU Risk Management – Program Administrators

12. METHODS OF CONTROLLING RISK Avoidance Transfer of Risk Retention of Risk –Reduce Risk through Loss Reduction Efforts –Finance Retained Risk Define Meaningful Standards and Expectations

13. EVALUTE LOSS POTENTIAL Evaluation Techniques –Frequency/Severity of Claims –Publications/Periodicals/Other Universities –Political/Litigation Climate –Anticipate

14. The Challenges We Face Internal –“We’ve never had that kind of loss” –“What, change my procedure, I’ve always done it this way!” –“I’ve taught this class for 20 years without a problem!” –“All Risk Management has is: bad news with higher price tags!” –No communication!

15. The Challenges We All Face External: –The Insurance Market –Your vendors –Your constituents –Unions –Auxiliary Organizations Foundations Athletic Corporations Bookstores Food Services Health Centers

16. OTHER RISKS TO CAUSE YOU WORRY Liability –General, a wide variety of exposures, including civil liability arising out of accidents resulting from the premises or operations of a public university –Employment- the trifecta of risk Expensive to defend Awarding of compensatory, special damages Awarding of plaintiff’s attorney fees –Automobile –Public Officials’ Errors and Omissions

17. Risk Management’s Role Consults Reviews Forecasts Play “what ifs” Thinks worst case scenarios Recommends Manages insurance and claims Looks for process improvement through feedback

18. Let’s Team Up! RM&S Takes an Active Role: G.O. Observe Inquire Alert Collaborate