1. Copyright © Texas Education Agency, 2012. All rights reserved. 1 Risk Management Techniques Statistics & Risk Management

2. Copyright © 2012 Texas Education Agency. All rights reserved. “Copyright and Terms of Service Copyright © Texas Education Agency. The materials found on this website are copyrighted © and trademarked ™ as the property of the Texas Education Agency and may not be reproduced without the express written permission of the Texas Education Agency, except under the following conditions: 1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from the Texas Education Agency; 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only without obtaining written permission of the Texas Education Agency; 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way; 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from the Texas Education Agency and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty fee. Call TEA Copyrights with any questions you have.

3. Copyright © Texas Education Agency, 2012. All rights reserved. Protections The value already created by the organization The value already created by the organization Its future opportunities, favoring secure growth Its future opportunities, favoring secure growth 3

4. Copyright © Texas Education Agency, 2012. All rights reserved. Identify Rectifiers Find and eliminate for road blocks Find and eliminate for road blocks Find Flow Restrictions and open up the flow Find Flow Restrictions and open up the flow Identify alternative courses of action. Identify alternative courses of action. 4

5. Copyright © Texas Education Agency, 2012. All rights reserved. Identify Opportunities Adds a positive approach to a often negative response process. Adds a positive approach to a often negative response process. Examining and Solving a problem often leads to additional opportunities. Examining and Solving a problem often leads to additional opportunities. 5

6. Copyright © Texas Education Agency, 2012. All rights reserved. Management Presentation Documents Documents Presentations Presentations Memo and Notes Memo and Notes Follow-ups Follow-ups 6

7. Copyright © Texas Education Agency, 2012. All rights reserved. Where to Apply Advertising Advertising – Effective? – Which add campaign? – Which markets? Quality control Quality control – Defect rate? – Cost? – Are improvements working? 7

8. Copyright © Texas Education Agency, 2012. All rights reserved. Where to Apply Finance Finance – Risk - How high? How to control? At what cost? Accounting Accounting – Auditing financial statements. Are errors material? Lobbying (no explanation needed) Lobbying (no explanation needed) Other Other – Economic forecasting, background info, measuring and controlling productivity (human and machine) 8

9. Copyright © Texas Education Agency, 2012. All rights reserved. Associations Professional or Industry Associations are often used to reduce risk. Professional or Industry Associations are often used to reduce risk. State Bar Associations State Bar Associations Realtors Association Realtors Association American Petroleum Institute American Petroleum Institute American Medical Association American Medical Association 9

10. Copyright © Texas Education Agency, 2012. All rights reserved. PACs Political Action Committee. Political Action Committee. – Organizations in the US which campaign for/against political candidates, ballot initiatives, or legislation. 10