1. I Now Have Risk Management Too
Scott J. Blaser, CSP, RMPE
Director, Risk Control

2. From your own perspective, what is risk management
From your own perspective, what is risk management? Give me your definition.

3. “Risk Management is the practice of protecting an organization from financial harm by identifying, analyzing and controlling risk at the lowest possible cost” - Robert J. Marshburn, CIC, CRM, ARM

4. Risk Managers are being asked to take on Human Resource duties or HR management is being asked to take on Risk Management duties.

5. How much are you going to be accountable for and how much authority will you or do you have?

6. Do you feel your public entity has a culture that is supportive of risk management? Why or why not?

7. How satisfied are you with the current risk management process?
What would you keep?
What would you like to see change?

8. What were my predecessor’s strengths?
What were his/her weaknesses?

9. What was your public entity’s biggest risk management failure in the past five years?

10. 3 Short Thoughts Don’t risk a lot for a little
Don’t risk more than you can afford to lose
Don’t treat insurance as a substitute for risk control*
* CRM Practice Manual

11. Some Basic Steps
Identify your risks
Property
Assets
Small scale losses
Large scale losses
Fleet

12. Some Basic Steps
Identify your risks
People
Workers compensation
Contractors/vendors
General liability
Property damage
Injuries

13. Some Basic Steps
Identify your risks
Cyber
Law enforcement liability
Product liability
Security/active shooter
Employment liability
Contract liability

14. Some Basic Steps
Identify your risks
Elected official
Land use
Meetings

15. Identify Your Risks
Develop Your Plan to Control
Contractual Transfer
Insurance Transfer
Retain
Deductibles
Self Insurance

16. Some Basic Steps
Know your retention levels
Monitor and modify

17. Build Your Team
Internal
Legal
Your staff
Human Resources
Accounting
Department heads
Key staff members
Safety committee

18. Build Your Team
External
Insurance carrier staff
Risk Control
Adjusters
Other resources
TPA’s
Agent/Broker
Consultants

19. Build Your Team
External
PRIMA – Public Risk Management Association
RIMS – Risk Management Society
FMASH – Florida Municipal Association for Safety & Health

20. Build Your Team
MUST COMMUNICATE WITH YOUR TEAM!

21. Professional Education:
Certified Risk Managers International - CRM
Insurance Institute of America – ARM, ARM-P, RMPE
Insurance Skills Center - CISC

22. Professional Education:
International Risk Management Institute (IRMI) – CRIS
The Society of Certified Insurance Counselors - CIC
American Hardware Mutual - Commercial Insurance Specialist

23. Workers’ Compensation & Your Experience Modification Factor
Workers’ Compensation Premium –
Payroll x Rate x Mod = Premium
Can Only Control the Mod!

24. Frequency Leads to Severity
Claims Issues
Frequency – How many losses
Severity – Large losses
Frequency Leads to Severity

25. Two Types of Losses
Medical Only – medical treatment for injury/exposure – worker returned to work in less than 7 days
Lost Time - medical treatment for injury/exposure – worker returned to work in more than 7 days

26. Experience Mod Example

27. Experience Mod
Actual Losses
Expected Losses
1.00 is average
Below 1.00 is good – a discount
Above 1.00 is not so good – a surcharge

28. Keys to Managing Your Mod:
Reduce losses through effective safety program
Effective return to work program to reduce the number of lost time claims
Monitor your claims reserves with TPA/carrier

29. Any Questions?