1. RISK MANAGEMENT ESSENTIALS MO/KS PRIMA CONFERENCE April 17, 2015 Linda Minson LMINSON@cretcherheartland.com Mick McBride mmcbride@sedgwick.gov

2. Low Probability Low Severity Low Probability High Severity High Probability Low Severity High Probability High Severity HOW SHOULD YOU DEAL WITH RISK

3. Ignore Avoid Internal Funding Ignore Avoid Internal Funding Transfer Risk Insurance Contract Transfer Risk Insurance Contract Low Probability Low Severity Low Probability High Severity High Probability Low Severity High Probability High Severity How Do You Handle Risk Of Loss?

4. Risk Management Responsibility IN THE EVENT OF AN ADVERSE EVENT YOUR RISK PLAN should PROVIDE adequate RESOURCES (MONEY) to pay the financial consequences of the event.

5. Insurance Agent Responsibility IN THE EVENT OF AN ADVERSE EVENT YOUR

6. RISK CONSIDERATIONS Continuity of Operations (COOP) Self Insurance vs Insurance Risk Transfer by Contract Enterprise Risk Management

7. How To Start (Decide) Which Risks Are Currently Not Insured? Read your insurance policy exclusions/limitations. – Intentionally caused – Protect property Before or After Loss – Vacant property – Earthquake, earth movement, flood, war, terrorism, nuclear radiation, mold, broken water main, mechanical breakdown, electrical arc, building code, margin clause, concealed carry – Margin Clause

8. DECISION TIME QUESTION: WHAT HAPPENS TO YOUR INSURANCE PREMIUM IF YOUR LOSS RATIO APPROACHES 50%?

9. DECISION TIME QUESTION: WHAT HAPPENS IF YOU HAVE TO TELL YOUR BOSS ANOUT A PREMIUM INCREASE?

10. SUMMARY You are already doing self insurance. How much is the real question. Should you modify your RISK PLAN to include more or less self insurance? Can you overcome the barriers? Can you COMMUNICATE your Risk PLAN to others?

11. QUESTIONS