1. 1 UNIVERSITIES of AUSTRALASIA BENCHMARKING RISK MANAGEMENT BILL DUNNE DIRECTOR RISK MANAGEMENT UNSW. PROUDLY SPONSORED BY UNIMUTUAL

2. 2 INTRODUCTION BENCHMARKING.. 2001 UNIVERSITIES BENCHMARKING PROJECT….THE CONCEPT BACKGROUND INFORMATION ANALYSE RESULTS WHAT THE RESULTS HAVE ACHIEVED WHERE TO FROM HERE?

3. 3 BENCHMARKING DEFINED AN ONGOING PROCESS FOR RIGOROUSLY MEASURING YOUR PERFORMANCE VERSUS THE BEST IN CLASS AMONGST YOUR PEERS, AND CREATIVELY APPLYING THE RESULTS OF THIS ANALYSIS TO MEET AND SURPASS THE BEST IN CLASS.

4. 4 THE RISK MANAGEMENT PROCESS. AS/NZS 4360. IDENTIFY EXPOSURES ANALYSE / ASSESS /PRIORITIZE / TREAT MONITOR AND REVIEW

5. 5

6. 6 PARTICIPATION 2001…….18 UNIVERSITIES FROM AUSTRALIA, AND 1 FROM NEW ZEALAND 2000…….18 UNIVERSITIES FROM AUSTRALIA, AND 3 FROM NEW ZEALAND

7. 7 FORMAT COMPUTER BASED INDEPENDENT DATA MANAGER CONFIDENTIALITY ASSURED ANSWER ONLY FORMAT RESULTS COLLATED BY MANAGER RESULTS TRANSMITTED ELECTRONICALLY AS AN E-MAIL ATTACHMENT

8. 8

9. 9 MANAGEMENT REPORT GRAPHICAL REPRESENTATIONS SHOWING RATINGS, ABOVE AND BELOW AVERAGE COMPARISON OF EACH ELEMENT AGAINST BEST PRACTICE AND GROUP AVERAGE

10. 10 SOME PROBLEMS WITH SELF ASSESSMENT LACK OF OBJECTIVITY YOU CAN BE TOO EASY ON YOURSELF OR TOO HARD ON YOURSELF

11. 11

12. 12

13. 13 WHAT DO YOU DO WITH THE DATA DONT JUST LOOK AT THOSE ELEMENTS THAT YOU PERFORMED POORLY IN CRITICALLY EXAMINE YOUR GOOD RATINGS AGAINST YOUR EXPECTED RESULTS

14. 14 RISK MANAGEMENT GOAL SETTING WHAT WILL I TARGET WHAT IS MY TARGETTED % IMPROVEMENT WHAT PROCESSES WILL I USE WHAT IS MY TIMEFRAME FOR REACHING MY TARGET[S] HOW MANY $$$$$$$ WILL I SAVE

15. 15 OUR GOAL 10% IMPROVEMENT

16. 16 IDENTIFY AREAS FOR IMPROVEMENT COST BENEFIT ANALYSIS LIKELIHOOD CONSEQUENCES COST OF RECTIFICATION

17. 17 RISK MANAGEMENT GOAL SETTING RESPONSIBLE PERSON DUE DATE FOR EACH JOB PROJECT COMPLETION DATE

18. 18

19. 19 INDIVIDUAL RESULTS SIXTEEN UNIVERSITIES PARTICIPATED IN BOTH 2000 AND 2001 14 IMPROVED THEIR PERFORMANCES

20. 20 AVERAGE OVERALL RESULT 2000…..72.5% 2001…..76.7% IMPROVEMENT …..4.2%

21. 21

22. 22

23. 23 CONFIDENTIALITY UNIVERSITY OF NSW RESULTS

24. 24

25. 25

26. 26 UNIVERSITY OF NEW SOUTH WALES LOSS PREVENTION………….+13.0% OH&S…………………………..+11.8% LABORATORY SAFETY……..+17.1% ASSET PROTECTION…………+12.1% SECURITY……………………...+10%

27. 27 UNIVERSITY OF NEW SOUTH WALES WORKERS COMPENSATION…..+15.9% REHABILITATION……………….+13.8% CLAIMS MANAGEMENT……….+13.8%

28. 28 UNIVERSITY OF NEW SOUTH WALES CHEMICAL SAFETY……….-5.0% FLEET MANAGEMENT…NO CHANGE

29. 29 UNIVERSITY OF NEW SOUTH WALES OVERALL RESULT +11.9%

30. 30 ASSESSMENT MEASURING PROCESS…. NOT OUTCOMES

31. 31 EXPECTED OUTCOMES REDUCTION IN CLAIMS (FREQUENCY/SEVERITY) REDUCTION IN COSTS CULTURE CHANGE IMPROVED RISK PROFILE

32. 32 THE BOTTOM LINE CLAIMS FREQUENCY PROPERTY………….-38.5% LIABILITY…………..-51.7% CONTRACTORS…….-60.0% MOTOR VEHICLE…..-53.8%

33. 33 THE BOTTOM LINE WORK RELATED ACCIDENTS MINOR REDUCTION IN FREQUENCY MAJOR REDUCTION IN SEVERITY WORKERS COMPENSATION CLAIMS ESTIMATES REDUCED BY >$1,000,000

34. 34 THE BOTTOM LINE INSURANCE ISR… IMPROVED LEVELS OF INDEMNITY …REDUCED PREMIUM LIABILITY… REDUCED PREMIUMS DESPITE A HARDENING MARKET

35. 35 BENEFITS OF SUCCESSFUL BENCHMARKING IMPROVED GOAL SETTING OVERCOME DISBELIEF ACCOUNTABILITY CULTURE CHANGE

36. 36 WHERE TO FROM HERE ? BENCHMARKING SHOULD NEVER BE CONSIDERED STATIC

37. 37 FUTURE BENCHMARKING TOPICS ANY SUBJECT THAT YOU THINK IS WORTHWHILE

38. 38 CRITERIA SIGNIFICANT RISK EXPOSURE STANDARD FOR BEST PRACTICE KEY PERFORMANCE INDICATORS

39. 39 SOME EXAMPLES INTELLECTUAL PROPERTY I.T. RISKS DISASTER CONTINGENCY PLANS LOSS OF REPUTATION LOSS MITIGATION CONTRACT RISKS

40. 40 WHAT NEXT REVIEW IMPROVEMENT PROGRAM NETWORK WITH OTHER UNIVERSITIES IN THE PROGRAM MONITOR PERFORMANCE

41. 41 CONTACT DETAILS William Dunne Director of Risk Management UNSW Sydney NSW 2052 Phone (02) 93851414 Fax, (02) 96634203 Email w.dunne@unsw.edu.au

42. THE END