risk management and insurance

Risk Management and Insurance

Betty Coulter, RMPEDirector of Risk ManagementFebruary 7, 2014

What is Risk Management ?

The process of making and implementing decisions that will minimize the adverse effects of accidental losses on an organization.

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The Evolution of Risk Management

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Risk is bad – focus is on transferring risk

Risk is an expense – focus is on reducing cost-of-risk

Risk is uncertainty – focus is on optimizing risk to achieve goals

Enterprise Risk Management• A wide range of risks are discussed

and reviewed, including reputational, human capital, strategic and operational

• Aligns RM process with strategy and mission

• May include “upside risks” (opportunities)

• Helps manage growth, allocate capital & resources

• Risks are owned by all & mitigated at the department level

• Many risk mitigation & analytical tools available

• Risk Manager is the risk facilitator and leader

Transactional Approach • Purchase insurance to cover risks• Hazard-based risk identification and

controls• Compliance issues addressed

separately• Safety & emergency mgmt handled

separately• “Silo” approach – risk mgmt is not

integrated across the organization• Risk Manager is the insurance buyer

A Broader Risk Mgmt Approach• Greater use of alternative risk

financing techniques• More proactive about preventing

and reducing risks• Integrates claims mgmt, contracts

review, special event RM, insurance and risk transfer techniques

• Cost allocation used for education and accountability

• More collaboration – as depts are willing

• Risk Manager may be the risk owner

Transactional

Strategic

Integrated

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Risk Management and Insurance Program Administration

Risk Assessment – Current and future operations/ activitiesProvide Risk Management ConsultationClaims ManagementContract ReviewPolicy Development

Minors on CampusDefensive Driving/MVR

TrainingRMSS Emergency ManualMinors on Campus Training ManualVan Certification Training

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Risk Management and InsuranceProgram Administration

UNCC Insurance ProgramProperty, Auto, Workers Compensation, ContentsOther – Foundation ProgramsTort Liability and Defense of Employees Act

Risk Financing StrategiesRisk Transfer

Contractual Insurance placement/purchaseTULIP

RetentionAvoidance

Record ManagementInsurance Costs Allocation

Thank You

Risk Management & InsuranceDepartment of Risk Management, Safety & Security

Betty Coulter, RMPEbcoulte1@uncc.eduwww.rmi.uncc.edu

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Continuity of Operations Plans (COOP)

Shawn Kiley, MPARisk Management, Safety, & SecurityOffice of Business Continuity Planning

February 7, 2014

Continuity PlanningWhy do we (Institutions of Higher Education, IHE)

need to worry about continuity?

Impact to campus, downtimeBusiness Continuity: Administrative Services, Research, Athletics, Auxiliary services, Housing, ParkingAcademic Continuity: Online Courses, Classroom/Lab Spacing

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Why Do Continuity Planning?

It’s good business practiceProtects assets, cuts emergency costs, protects image

Part of risk management processPrevent, protect, mitigate, prepare, respond, recoverIdentify trends and predict risks

Promotes resiliencyAbility of an organization to absorb the impact of a disaster, and continue to function at a minimum acceptable levelOften the outcome of effective planning

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Boston Marathon BombingBoston on Lockdown

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“City-wide shelter-in-place is advised. As this investigation unfolds, we are advising all city-wide to shelter-in-place. Please understand we have an armed and dangerous person(s) still at large and police are actively pursing every lead in this active emergency event….All MBTA service remains suspended at this time.”

- April 19, 2013, 8:34 AM, ALERTBoston

RadicalCartogrophy.net

2012: Hurricane Sandy

NOAA Satellite Image, October 29, 2012.

Inclement Weather

Snow storms (2010) in DC area, 7-day closure

UNC Charlotte (2011) snow storm 3-day closureUNC Charlotte (2014) snow storm2-day closure

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Analogous to a Disaster

If UNCC hosted DNC security and volunteers1,500 beds proposed

Impact to campusOperational: Academic Semester, Move-in, various activitiesFinancial: Bookstore , Food Services, Housing, & Parking costs

Cost$3 Million to recover losses

Morrill, Jim. “UNCC Offers Dorms to DNC,” The Charlotte Observer (4/12/11)

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What is Business Continuity?

Continuity of Operations Plans (COOP)Business Impact Analysis (BIA)Risk Assessment (RA)Business Continuity Plan (BCP)

It is not:Emergency Management (EM)Disaster Recovery (DR)

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Disaster-Impact Timeline

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Business Continuity Strategy

Executive Level Buy-In

Unit-Level COOPs

Department-Level BIAs

Department-Level Risk Assessment

Test, Training and Exercise Program (TTE)

Evaluation/Audit

BC Strategy

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Continuity of Operations Plans (COOP)

Identify communications (including redundant methods)List and confirm alternate locations and facilities for conducting operationsResponse Plans (damage to vital records)

How they are kept (paper vs. electronic)Where they are kept (open file vs. fireproof safe)How to recover if they are damaged

Allow for succession and delegation of authority

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Business Impact Analysis (BIA)

Determine the effect of interrupted services on each unitShort and long-term effects of a disaster

Service Revenue/expenses Goodwill

Develops a strategy for the business unit and parent organization, and entire institution

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Business Continuity Plan (BCP)

Integrate information from COOP, BIA, and Risk Assessment, with strategies to develop plans for continuity

Risk Assessment: vulnerabilities, gaps & mitigationResource allocation for prioritized functions

Based on prioritization of critical needPromotes efficiency, effectiveness, customer service

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The University of North Carolina at Charlotte

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Continuity Challenges

Continuing/restoring essential operations during/after emergency

What is essential in an academic setting?Education: classroom and online classesResearch activitiesAdministrative tasksAthletics and public activitiesSupport and other functions

How to prioritize resumption of services?

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Completing your COOP

List all of the critical functions/processes within the unitEffect of loss of function/process

Loss of revenue/increased costs (cost per day)Legal liability, fines/penalties, public harmLoss of goodwill, other intangibles

Ability to operate at reduced efficiencyRecovery Time Objective (RTO)Key dependenciesContingency plans

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Interdependency Map

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Relationships & Communication

University partnersColleges, departments, and units

Government partnersLocal, county, state, federalConstituent institutions of UNC System

Private sector partners (including non-Profits)Hospitals, CRI-campus, American Red Cross

AssociationsProfessional organizations

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Workshop (25 Minutes)

Scenario Handout

Read and discuss the scenario/questionsGroups of 5 or 6Select a group representative to report out what you have discussed

15 minutes to discuss; 10 minutes to report out

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Thank You

Office of Business Continuity PlanningDepartment of Risk Management, Safety & Security

Shawn Kiley, MPAskiley@uncc.edu

www.bcp.uncc.edu

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