cover slide - austin & stanovich · cover slide (intro by tim palmer ... berklee college of...
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1
UR
MIA
Co
nfe
ren
ce 2
01
2:
“P
rovid
en
ce
20
12
-Gu
idin
g y
ou
Ac
ross
the O
ce
an
of R
isk”
1. C
ove
r Slid
e (In
tro b
y T
im P
alm
er)
Good M
orn
ing a
nd w
elc
om
e to
“Aho
y M
ate
y-T
ake th
e T
iller a
nd M
ain
tain
Due C
ours
e th
rough E
xposure
Ide
ntific
atio
n”. I
am
Tim
Palm
er . . . . . . . L
et m
e in
troduce
yo
u to
the p
resente
rs fo
r this
sessio
n.
Ed
wa
rd F
rackie
wic
z:
Ed
Fra
ckie
wic
z is
the
Le
ad
er o
f the
Bo
sto
n C
on
so
rtium
Ris
k M
an
ag
em
en
t Advis
ory
Gro
up
pro
vid
ing
inte
gra
ted
Ris
k
Ma
na
gem
en
t se
rvic
es
to
Bra
nde
is
Un
ive
rsity
, B
en
tley
Colle
ge
, B
erk
lee
C
olle
ge
o
f M
usic
, B
rya
nt
Un
ive
rsity
, E
me
rso
n C
olle
ge
, Fra
nklin
W. O
lin C
olle
ge o
f Eng
ine
erin
g, L
aS
elle
Co
llege
, Salv
e R
egin
a U
niv
ers
ity, W
elle
sle
y
Colle
ge
, Whea
ton
Colle
ge a
nd
Worc
este
r Poly
tech
nic
Institu
te.
Prio
r to jo
inin
g th
e C
onso
rtium
team
, Ed
wa
s th
e D
irecto
r, Ris
k M
an
ag
em
en
t for A
llme
rica
Fin
an
cia
l Co
rpo
ratio
n a
nd
the
D
el
Mon
te
Foo
ds
Co
mp
an
y.
In
bo
th
role
s,
he
w
as
the
p
rima
ry
indiv
idu
al
resp
on
sib
le
for
co
rpo
rate
ris
k
man
agem
en
t aw
are
ne
ss a
nd
the
execu
tion
of fin
ancia
l trea
tme
nts
de
sig
ne
d to
pro
tect c
om
pan
y a
sse
ts. In
ad
ditio
n,
he
ha
d g
lob
al a
ccou
nta
bilitie
s fo
r the
stra
teg
y a
nd
se
lectio
n o
f pro
pe
rty &
ca
su
alty
insu
ran
ce
pro
gra
ms, s
ecu
rity a
nd
sa
fety
se
rvic
e p
rovid
ers
an
d c
orp
ora
te fle
et v
eh
icle
man
agem
en
t. E
d w
as a
lea
din
g m
em
be
r of th
e ris
k m
ana
gem
en
t team
with
the L
ibe
rty M
utu
al In
su
rance
Gro
up
. Du
ring
his
twe
nty
-ye
ar
ca
ree
r a
t L
ibe
rty,
he
h
eld
n
um
ero
us p
ositio
ns in
clu
din
g cla
ims a
dju
ste
r, tra
inin
g su
pe
rvis
or,
Ma
na
ge
r of
Co
nsum
er A
ffairs
& C
orp
ora
te In
su
ran
ce
an
d D
irecto
r of R
isk F
ina
ncin
g.
Ed
is
a g
rad
ua
te o
f Wake
F
ore
st
Univ
ers
ity w
ith a
B
S in
B
usin
ess a
nd h
as ea
rne
d his
A
RM
desig
na
tion
. H
e
cu
rren
tly se
rve
s th
e ro
le a
s an
in
de
pen
den
t D
irecto
r a
nd P
resid
en
t E
me
ritus of
the
N
ew
E
ng
lan
d E
du
ca
tors
In
su
ran
ce
Asso
cia
tion
Boa
rd (N
EE
IA) a
nd
a m
em
be
r of th
eir R
isk M
ana
gem
en
t an
d S
trate
gic
Pla
nn
ing
Com
mitte
es.
He
has p
resen
ted
at p
rog
ram
s h
oste
d b
y U
RM
IA, R
IMS
, the
So
cie
ty o
f Con
sum
er A
ffairs
in B
usin
ess (S
OC
AP
), In
su
ran
ce
Con
sum
er A
ffairs
Exch
an
ge
(ICA
E), In
tern
atio
na
l Qua
lity &
Pro
du
ctiv
ity C
en
ter (IQ
PC
) an
d th
e A
llian
ce
of
Am
eric
an
Insu
rers
(AA
I). He
als
o s
erv
ed
as a
mem
be
r of th
e B
oa
rd o
f Dire
cto
rs o
f the
Trip
le S
Insu
ran
ce
Ag
en
cy,
Inc. a
nd
on
a N
atio
nal F
oo
d P
roce
sso
rs A
sso
cia
tion
(NF
PA
) Insu
ran
ce
Task F
orc
e.
Willia
m A
ustin
: B
ill Au
stin
is a
prin
cip
al o
f Austin
& S
tan
ovic
h R
isk M
an
age
rs L
LC
, a n
atio
na
l risk m
an
agem
en
t co
nsultin
g firm
, with
o
ffice
s in
MA
and
RI. H
e s
pe
cia
lize
s in
all a
sp
ects
of ris
k m
an
ag
em
en
t. His
hig
he
r edu
ca
tion
pra
ctic
e in
clu
des
man
y w
ell-k
no
wn
co
lleges a
nd
un
ive
rsitie
s lo
ca
ted
th
roug
h th
e N
orth
ea
st
US
su
ch
as B
osto
n C
olle
ge
, B
rya
nt
Univ
ers
ity, J
oh
nson
& W
ale
s U
niv
ers
ity, M
aris
t Colle
ge
, Pro
vid
en
ce
Co
lleg
e, R
hod
e Is
lan
d S
ch
ool o
f De
sig
n, T
rinity
C
olle
ge
. He
is a
reso
urc
e to
Un
ive
rsity
of R
ho
de
Isla
nd
, Rho
de
Isla
nd
Colle
ge
an
d C
om
mu
nity
Colle
ge
of R
hod
e
Isla
nd
. His
con
sultin
g p
ractic
e in
clu
des o
rgan
iza
tion
s fro
m F
ortu
ne
10
0 c
om
pa
nie
s to
larg
e re
gio
na
l co
rpo
ratio
ns to
g
ove
rnm
en
tal
en
tities.
H
e als
o h
as an
activ
e litig
atio
n sup
po
rt p
ractic
e th
at
inclu
de
s e
xp
erie
nce
as a
n e
xp
ert
witn
ess in
bo
th d
isclo
se
d a
nd
no
n-d
isclo
se
d e
ng
age
me
nts
. Som
e o
f his
expe
rt witn
ess e
ng
agem
en
ts h
ave
inclu
ded
hig
he
r ed
uca
tion
risk a
nd
insu
rance
issu
es.
His
risk a
nd
insu
ran
ce
care
er b
ega
n in
19
77
an
d e
vo
lve
d to
inclu
de
su
cce
ssfu
l em
plo
ym
en
ts in
und
erw
riting
with
W
ausa
u In
su
ran
ce
Com
pa
nie
s, n
atio
nal b
roke
rag
e w
ith R
ollin
s H
ud
ig H
all n
ow
Ao
n, in
dep
end
en
t consu
lting
with
A
lbe
rt Ris
k a
nd
7+
ye
ars
as a
VP
/Co
rpo
rate
Ris
k m
an
age
r for F
lee
tBo
sto
n a
Fo
rtune
100
co
rpo
ratio
n, 7
th la
rge
st
US
ba
nk w
ith o
pe
ratio
ns in
21 c
ou
ntrie
s a
nd m
ore
tha
n 5
0,0
00
em
plo
ye
es. H
e c
o-fo
un
de
d A
ustin
& S
tan
ovic
h R
isk
Ma
na
ge
rs w
ith C
raig
Sta
no
vic
h in
20
02
as a
n in
de
pe
nd
en
t risk m
an
agem
en
t an
d in
su
rance
co
nsu
lting
firm. B
ill is a
re
gu
lato
r co
ntrib
uto
r to In
tern
atio
na
l Ris
k M
an
agem
en
t Institu
te. H
e is
a g
rad
ua
te o
f Univ
ers
ity o
f Wis
con
sin
-Ea
u
Cla
ire w
ith a
BB
A in
ma
rke
ting
with
an
em
pha
sis
in fin
an
ce
and
ha
s a
CR
IS d
esig
na
tion
from
IRM
I. B
ill is a
freq
uen
t sp
eake
r on
risk m
an
agem
en
t an
d in
su
rance
topic
s. In
the
pa
st y
ea
r he
wa
s a
pa
nelis
t for a
NY
C
RIM
S p
an
el d
iscu
ssio
n o
n R
MS
risk m
ode
ling
; a p
an
elis
t at F
ord
ham
La
w S
ch
ool in
NY
C o
n “H
um
an
Rig
hts
–
Em
erg
ing
Ris
ks fo
r Co
rpora
te C
oun
sel a
nd
dis
cu
sse
d o
pe
ratio
na
l risk is
su
es fo
r non
-pro
fits fo
r the
RI C
PA
So
cie
ty.
Ed
a
nd B
ill h
ave
kn
ow
n e
ach
o
the
r fo
r 1
0 ye
ars
a
s b
oth
a
re a
ctiv
e in
th
e G
rea
ter
Bo
sto
n R
isk M
an
agem
en
t C
om
mu
nity
for 1
0 y
ea
rs. T
he
y to
ld m
e it is
a p
lea
sure
to p
rese
nt th
is s
essio
n to
ge
the
r toda
y.
2 2
. Ou
r Ex
pe
cta
tion
s S
lide
Ed
Fra
ckie
wic
z a
nd
I are
ve
ry h
ap
py to
se
e a
ll of y
ou a
t our s
essio
n.
Ou
r go
al to
da
y is
sim
ple
: Thro
ug
h a
n e
xch
an
ge
of id
ea
s w
e h
op
e a
ll of u
s w
ill beco
me
mo
re e
ffectiv
e ris
k
ma
nag
ers
thro
ug
h e
nh
an
ced
aw
are
ne
ss to
the im
po
rtan
ce o
f exp
os
ure
iden
tificatio
n.
I rem
em
ber th
e re
cru
iting
bro
ch
ure
used
by W
ausa
u In
sura
nce
Co
mp
an
ies in
197
7, w
hen
I go
t out o
f co
lleg
e.
It sa
id s
om
eth
ing
like
FIR
E, E
XP
LO
SIO
N, L
OS
S o
f LIF
E, D
ISA
ST
ER
-how
ca
n a
ca
ree
r in in
sura
nce
be b
orin
g
wh
en
yo
u w
ork
with
these
typ
es o
f eve
nts
. All e
xp
osu
res to
loss b
ut s
imp
ly w
ord
s, n
ot d
ime
nsio
na
l in a
ny w
ay
for o
ne
that w
ould
ultim
ate
ly b
eco
me
a F
ortu
ne
10
0 ris
k m
anag
er.
Yo
u c
an
no
t ma
nag
e o
r un
ders
tan
d o
r treat w
ha
t yo
u d
o n
ot k
no
w!!! Y
ou
nee
d to
ma
nag
e a
360
de
gre
e
of e
xp
os
ure
-cau
se
/effe
ct a
nd
effe
ct o
n a
giv
en
ass
et (b
uild
ing
, data
, hu
ma
n c
ap
ital) a
nd
wh
at th
es
e
sam
e a
ss
ets
ca
n d
o to
cre
ate
exp
os
ure
to o
the
r ass
ets
(neig
hb
orin
g b
uild
ing
, theft o
f data
, inju
ry to
h
um
an
ca
pita
l an
d in
jury
to o
ther p
eo
ple
an
d o
rgan
izatio
ns). E
xp
osu
re re
vie
w is
3 d
ime
nsio
na
l-it is
no
t that w
hic
h m
ay b
e o
bvio
us
. T
he P
ow
erP
oin
t that y
ou
ma
y h
ave
do
wn
load
ed
from
UR
MIA
is a
wo
rkin
g d
raft w
e c
reate
d a
t the b
eg
innin
g o
f th
e s
um
me
r. We d
ecid
ed
this
se
ssio
n m
ay a
llow
gre
at id
ea
s, s
torie
s a
nd s
o o
n fro
m th
is g
rou
p.
Th
e o
ne
used
for to
da
y is
our fin
al d
raft. W
e h
ope
to e
licit id
ea
s fro
m th
e g
roup
toda
y th
at w
e c
an u
se to
u
pd
ate
this
final d
raft in
to a
final v
ers
ion
that in
clu
de
s a
ll poin
ts fro
m th
is s
essio
n. In
oth
er w
ord
s th
is w
ill be
kin
d o
f a liv
ing
docu
men
t to ta
ke
our id
ea
s a
nd
poin
ts a
nd
brin
g in
the c
om
me
nts
from
those o
f yo
u th
at d
ecid
e
to s
hare
thoug
hts
, idea
s a
nd
sto
ries w
ith u
s. S
ucce
ss s
torie
s a
nd fa
ilure
sto
ries. W
e le
arn
from
he
arin
g fro
m
one a
no
ther w
hat w
ork
s a
nd
wh
at d
oe
s n
ot.
Ed
is s
erv
ing
as s
crib
e to
da
y. H
e lo
st th
e c
oin
toss a
s to
wh
o w
ould
sp
ea
k a
nd
wh
o w
ou
ld b
e s
crib
e. T
hen
ag
ain
ma
yb
e h
e w
on! H
e lik
e m
e w
as a
lso
a ris
k m
anag
er a
nd
has d
eve
lope
d a
risk m
anag
em
ent to
ol s
et th
at
inclu
de
s id
eas o
n e
xp
osu
re id
en
tificatio
n.
We w
ill take
idea
s fro
m th
is s
essio
n a
nd
upd
ate
the P
ow
erP
oin
t as b
est w
e c
an a
nd
have
it co
nve
rted to
PD
F.
It will lik
ely
be p
oste
d b
y U
RM
IA a
nd
will b
e a
t my w
ebsite
Octo
ber 1
5, 2
01
2 w
ww
.austin
sta
no
vic
h.c
om
. Ed
will
yo
u b
e p
ostin
g it to
Th
e B
osto
n C
onsortiu
m w
ebsite
as w
ell?
Do
wn
load
it/sh
are
it as y
ou d
ee
m a
pp
rop
riate
. If y
ou ra
ther h
ave
it em
aile
d to
yo
u w
hen
read
y s
imp
ly le
ave
yo
ur e
ma
il add
ress w
ith u
s o
n th
is s
ign-u
p s
heet
and
we
will e
ma
il it to y
ou
wh
en
it is re
ad
y fo
r rele
ase
. Ple
ase
prin
t yo
ur e
ma
il add
ress c
learly
for u
s to
read.
3. S
lide: T
he R
isk
Man
ag
em
en
t Pro
ce
ss
Is
a te
mp
late
app
roa
ch
rea
lly u
se
d?
Is it u
sefu
l? Y
es to
bo
th q
uestio
ns. If y
ou
r initia
l rea
ctio
n is
no
the
n y
ou
ma
y n
eed
to re
-thin
k y
ou
r pra
ctic
e o
f risk m
an
agem
ent. T
he
ste
ps a
re s
imp
le. T
he
ste
ps
ke
ep
us o
n p
oin
t as to
exp
osu
re id
en
tificatio
n firs
t an
d tre
atm
en
t op
tion
s s
eco
nd.
1
. Id
en
tify a
nd
an
aly
ze
ex
po
su
re to
loss.
2.
Eva
lua
te fe
asib
le a
ltern
ativ
e ris
k m
ana
ge
men
t tech
niq
ue
s to
ha
nd
le lo
ss e
xp
osu
res.
3.
Se
lect th
e m
ost a
pp
rop
riate
/effic
ien
t risk m
an
age
me
nt te
chn
iqu
es to
han
dle
loss e
xp
osu
res.
4.
Imp
lem
en
t the c
ho
se
n te
ch
niq
ue
s.
5.
Mo
nito
ring
the
resu
lts, re
vis
e a
s re
qu
ired
and
sta
rt ove
r ag
ain
with
ex
po
su
re id
en
tificatio
n.
What is
inte
restin
g th
ese
5 s
tep
s a
re u
se
d in
ma
ny ty
pe
s o
f risk m
an
age
me
nt p
roce
sse
s. I h
ave
se
en
sim
ilar s
tep
s fo
r e-d
ata
risk m
an
agem
en
t and
in IS
O 9
00
1 d
ocum
en
ts th
at d
iscuss ris
k m
an
agem
ent
as a
dis
cip
line
an
d a
ma
na
gem
ent p
ractic
e.
3 4
. Ins
ert F
lee
t Bu
sin
es
s P
lan
ne
xt S
lide
an
d d
isc
uss
WK
A R
isk
Ma
nag
em
en
t Slid
e
I imp
lem
en
ted
a b
usin
ess p
lan
ap
pro
ach
to ris
k m
ana
ge
men
t that w
as in
itially
a o
ne y
ear p
lan
an
d
the
n a
s th
e o
rga
niz
atio
n b
ecam
e m
ore
com
ple
x I e
xp
an
de
d it u
ltima
tely
to 3
ye
ars
as s
om
e o
f ou
r in
itiativ
es c
ou
ld o
r wo
uld
take
mu
ch
lon
ge
r tha
n 1
2 o
r eve
n 2
4 m
on
ths to
de
sig
n a
nd
imp
lem
en
t. It le
d o
ff with
Exp
osu
re ID
-the
n R
isk C
on
trol-th
en
Ris
k F
ina
ncin
g a
nd th
en
Adm
in E
fficie
ncie
s-s
elf is
sue
of in
su
ran
ce
ce
rts-tra
ditio
na
l insu
ran
ce
as w
ell a
s c
aptiv
e.
Pla
n th
e w
ork
-Wo
rk th
e P
lan
E
d a
nd
I firmly
be
lieve
the
2 m
ost im
po
rtan
t ste
ps in
the
Ris
k M
ana
ge
men
t pro
ce
ss a
re th
e firs
t and
las
t-eve
ryth
ing
be
gin
s
with
e
xp
osu
re
ide
ntific
atio
n
and
sta
rts
ove
r a
ga
in
with
e
xp
osu
re
ide
ntific
atio
n. O
rga
niz
atio
ns e
vo
lve
as w
ill exp
osu
re to
loss-in
su
rab
le o
r no
t-1st p
arty
or 3
rd pa
rty.
A ris
k m
an
ag
em
en
t pro
gra
m th
at d
oes
no
t evo
lve
co
nsis
ten
t with
ex
po
su
res
to lo
ss
is lik
ely
a
n in
effe
ctiv
e ris
k m
an
ag
em
en
t p
rog
ram
fo
r th
e o
rgan
iza
tion
. T
ec
hn
iqu
es
lik
e In
su
ran
ce
pu
rch
as
e o
r imp
lem
en
tatio
n o
f a c
ap
tive
ins
ure
r are
no
t risk m
an
ag
em
en
t pro
gra
ms
. Ea
ch
m
ay b
e c
ritica
l co
mp
on
en
t of th
e o
ve
rall ris
k m
an
ag
em
en
t pro
gra
m b
ut a
re n
ot s
ub
stitu
tes
for
the
risk
ma
nag
em
en
t pro
gra
m in
tota
l. 5
. Wh
at D
o W
e m
ea
n b
y E
xp
osu
re
Exp
osu
res to
loss-in
sura
ble
or n
ot-c
ontin
ue
to e
vo
lve
and
ou
r skill s
et m
ust e
vo
lve
as w
ell in
ord
er to
se
rve
our
org
aniz
atio
ns a
s e
ffectiv
e ris
k m
anag
ers
. E
xp
osu
re d
efin
ed
from
IRM
I: “Th
e s
tate
of b
ein
g s
ub
ject to
loss b
eca
use
of s
om
e h
aza
rd o
r co
ntin
ge
ncy”.
6. W
hat d
o w
e m
ea
n “
Ris
k” a
nd
“L
os
s”
Ho
w to
defin
e “ris
k”: IR
MI: a
term
of m
any m
eanin
gs. T
wo
of th
e p
rincip
al m
ean
ing
s a
re 1
. Un
certa
inty
and
2.
A s
ubje
ct o
f insura
nce (e
.g., a
hou
se) (s
om
etim
es a
lso
refe
rred to
as a
n e
xp
osu
re u
nit o
r unit o
f exp
osu
re)
Ris
k d
efin
ed
? IR
MI: S
om
etim
es th
e p
roba
bility
of a
n e
ve
nt. L
et’s
just s
ay th
e p
ossib
ility o
f loss. L
et’s
not
pre
tend
to b
e a
n a
ctu
ary
. It ca
n e
ither h
ap
pe
n o
r it ca
nn
ot h
ap
pe
n. It is
or it is
not. M
ust lo
ok a
t eac
h s
ing
le
exp
os
ure
a
s to
th
e p
oss
ibility
o
f a
n e
ve
nt.
A
SS
UM
E s
om
eth
ing
c
an
o
r c
an
no
t h
ap
pen
a
fter
yo
u
inq
uire
. DO
NO
T S
IMP
LY
AS
SU
ME
IT C
AN
NO
T H
AP
PE
N H
ER
E.
“lo
ss
”: IR
MI: th
e b
asis
of a
cla
im fo
r dam
ag
es u
nd
er th
e te
rms o
f a (in
sura
nce
) polic
y.
Be
tter: re
du
ctio
n in
the v
alu
e o
f an a
sset d
ue to
pe
ril or d
am
ag
es fo
r neg
lige
nt u
se o
f the a
sset.
We
ha
ve
5 s
en
ses
: Sig
ht, S
peec
h, S
me
ll, So
un
d a
nd
Tas
te. L
et’s
co
ns
ide
r ou
r 5 s
en
se
s a
s a
m
ea
ns to
ide
ntify
ex
po
su
re.
7. K
ey P
oin
ts o
f Ris
k M
an
ag
em
en
t
8. S
lide: C
ras
h-B
oo
m-B
an
g
Did
yo
u h
ea
r so
und
s o
r exp
osu
res?
What a
re s
om
e e
xp
osu
res th
at c
om
e to
min
d?
Airp
lan
e c
rash
(dam
age
to b
uild
ing, d
ea
th o
f pa
ssen
ge
rs), (in
terru
ptio
n o
f freig
ht tra
nsit)
Scre
am
s-a
ssa
ult-m
uggin
g (la
ck o
f safe
ty)
Gu
n s
ho
ts (la
ck o
f safe
ty, d
am
age
to b
uild
ings, ro
bbe
ry o
f mon
ey/s
ecu
rities)
4 A
mbu
lan
ce
-on
ca
mp
us o
r off (in
jurie
s o
n c
am
pu
s-in
jurie
s c
au
se
d b
y d
rive
r of c
olle
ge
am
bu
lan
ce
) T
raffic
co
nge
stio
n (p
rob
lem
or s
om
e e
ve
nt o
n c
am
pu
s)
Do
g g
row
ling (la
ck o
f safe
ty a
nd
bre
ach
of c
om
mo
n la
w)
Fire
Ala
rm (d
an
ge
r on
ca
mpu
s, d
an
ge
r from
ne
ar c
am
pu
s, fa
ulty
ala
rm, d
am
age
to b
uild
ing, in
jury
to
pe
rso
n p
ullin
g a
larm
) N
ot a
ll exp
osu
res a
re o
bvio
us.
WK
A
pro
pe
rty
un
de
rwrite
r e
ure
ka
: P
rope
rty
we
se
e
the
a
sse
t a
nd
ca
n
vis
ua
lize
th
e
exp
osu
re.
Ca
su
alty
ma
y n
ot b
e o
bvio
us. M
an
in w
ind
ow
sittin
g a
t de
sk m
ay c
rea
te m
ore
exp
osu
re to
loss th
an
the
bu
ildin
g h
e w
ork
s in
. 9
-10
-11. W
ha
t do
yo
u s
ee
?
12
. Ex
po
su
re Id
en
tifica
tion
Usin
g 5
Se
ns
es
PL
US
1
Sile
nce
do
es n
ot m
ean a
ll is a
t pe
ace
What e
xp
osu
re d
id y
ou s
ee
an
d h
ea
r?
E
mp
loye
e liftin
g h
ea
vy o
bje
ct n
ot p
ayin
g a
tten
tion
to p
rop
er liftin
g m
eth
od
s
B
roke
r curb
in a
he
avy fo
ot tra
ffic a
rea
S
milin
g s
tude
nt ju
st a
cce
pte
d in
to fo
reig
n s
tud
y p
rogra
m in
Ch
ina
W
ithd
raw
n s
tud
en
t dw
ellin
g o
n b
ad
test s
co
re
W
ithd
raw
n s
tud
en
t dw
ellin
g o
n s
exu
al a
ssa
ult
P
are
nt ta
lkin
g to
atto
rne
y a
bo
ut s
exu
al a
ssau
lt of th
eir c
hild
N
ew
sp
ap
er re
po
rter g
ath
erin
g fa
cts
on
ca
mp
us s
exu
al a
ssa
ults
L
ega
l dep
artm
ent c
reatin
g a
ne
w e
ntity
to a
ct a
s s
traw
to p
urc
ha
se
pro
pe
rty n
ea
r cam
pu
s
S
tude
nt d
rive
r with
sp
ee
din
g tic
kets
ge
tting in
to c
olle
ge
va
n to
tran
spo
rt fello
w a
thle
tes
A
dju
nct in
stru
cto
r den
ied
a p
erm
ane
nt p
ositio
n
O
lde
r facu
lty m
em
be
r tha
t ha
s y
et to
rece
ive
ten
ure
B
oa
rd m
em
be
rs v
otin
g to
exp
an
d n
ew
bu
ildin
g w
hile
facin
g fin
an
cia
l ch
alle
nge
s
G
ay s
tud
en
t vid
eo
go
ing v
iral o
n Y
ou
Tube
S
tude
nt h
acke
r ob
tain
ing s
tud
en
t pe
rsona
l info
rma
tion
from
ca
mp
us c
om
pu
ters
F
acu
lty m
em
be
r en
terin
g in
to re
sea
rch g
ran
t for s
om
e ty
pe
of b
io/m
ed
de
vic
e
• B
ein
g a
risk m
anag
er is
not th
e s
am
e a
s b
ein
g ris
k a
dve
rse
. Be
ing c
onscio
us o
f exp
osu
re s
imp
ly m
ean
s
bein
g a
wa
re o
f situ
atio
ns th
at m
ay b
e a
dve
rse
to y
our in
stitu
tion a
nd
if don
e tim
ely
giv
ing
the in
stitu
tion
time
to im
ple
me
nt a
pp
rop
riate
risk m
anag
em
ent te
chn
iqu
es. W
e n
ee
d to
imp
lem
en
t techn
iqu
es c
on
sis
tent
with
the n
ee
ds o
f our in
stitu
tion b
ut c
onsis
tent w
ith o
ur o
wn
feels
of ris
k. T
hin
k in
term
s o
f risk/re
wa
rd a
nd
h
ow
to m
inim
ize
the ris
k a
nd
still re
ap th
e re
wa
rd
• T
he p
ractic
e o
f risk m
an
ag
em
ent is
both
Art a
nd S
cie
nce
. It takes o
ur 5
se
nse
s P
LU
S a
6th s
en
se o
f E
XP
OS
UR
E A
WA
RE
NE
SS
wh
ich
I thin
k is
a c
om
bin
atio
n o
f EX
PE
RIE
NC
E, C
OM
MO
N S
EN
SE
an
d
BU
SIE
NS
S S
EN
SE
to p
erfo
rm th
e a
rt aspe
ct o
f risk m
anag
em
ent. D
eve
lop
ing
a 6
th s
ense
with
in ris
k
ma
nag
em
ent is
ke
y to
first c
reatin
g a
nd
se
con
d m
ain
tain
ing
a ris
k m
anag
em
ent p
rog
ram
that is
effe
ctiv
e
for y
our in
stitu
tion a
nd
one
that s
hou
ld e
vo
lve
with
yo
ur in
stitu
tion
. So
me
wa
ys to
deve
lop a
nd
ma
inta
in
yo
ur 6
th se
nse
.
5 •
We b
elie
ve
ris
k m
anag
em
ent
is b
est
perfo
rmed
a
s a
te
am
sp
ort.
It
take
s a
villa
ge
. Y
OU
a
s ris
k
ma
nag
em
ent n
ee
d te
nta
cle
s in
to th
e o
rga
niz
atio
n. T
alk
to y
our c
olle
ag
ues a
s a
risk m
anag
er n
ot ju
st o
nce
a y
ear to
ga
ther in
sura
nce
rene
wa
l info
rmatio
n.
• W
e b
elie
ve
risk m
anag
em
ent c
ann
ot b
e e
ffectiv
ely
pra
ctic
ed a
s “s
ilo” o
r in a
“so
lo”. L
ea
rn to
iden
tify a
ny
exp
osu
re o
r risk to
yo
ur in
stitu
tion a
nd s
hare
with
those th
at m
ay b
e in
po
sitio
n to
bette
r dea
l with
it than
yo
u. J
ust b
eca
use
yo
u a
re n
ot in
IT o
r HR
doe
s n
ot m
ean
yo
u s
hou
ld a
ssu
me
those
folk
s a
re u
p to
date
w
ith e
xp
osu
res th
at m
ay c
ripple
yo
ur in
stitu
tion fin
ancia
lly o
r by re
puta
tion
. •
Th
e tra
nsitio
n fro
m o
pera
tion
al ris
k m
anag
em
ent to
ente
rpris
e ris
k m
anag
em
ent is
easy. R
isk is
Ris
k.
•
Th
e 8
0/2
0 A
dag
e: 8
0%
of e
xp
osu
re fa
ce
d b
y a
ny o
rga
niz
atio
n is
sa
me
or s
imila
r to th
at fa
ce
d b
y o
the
r org
aniz
atio
ns in
oth
er in
du
strie
s. T
he tru
e d
iffere
nce
in e
xp
osu
re b
y in
du
stry
ma
y b
e 2
0%
. Th
ere
is m
ore
in
co
mm
on a
s to
loss e
xp
osu
res to
all in
du
strie
s th
en
that w
hic
h is
unco
mm
on: B
uild
ing
s b
urn
, pe
op
le g
et
inju
red
beca
use
of o
pera
tions, p
eo
ple
su
e w
hen
inju
red. E
mp
loye
es s
ue w
hen
term
inate
d, e
tc.
Co
lleg
e a
nd
Un
ive
rsity
ca
mp
use
s a
re lik
e c
ities w
ith m
ore
go
ing
on a
t any o
ne
mo
me
nt th
an
stric
tly e
du
catio
n.
Ca
mp
us s
ecurity
-polic
e; re
sta
ura
nt/fo
od
pre
p a
nd
deliv
ery
, gro
un
ds m
ain
ten
ance
; hea
lth c
are
de
live
ry-o
nsite
clin
ic, h
osp
itals
, me
nta
l he
alth
co
un
selin
g e
ve
n E
MT
am
bu
lance
s; b
roa
dca
stin
g-T
V, ra
dio
, prin
t, we
b;
13. S
lide M
om
en
t of T
ruth
We a
ll talk
ab
out ris
k m
ana
ge
me
nt. In
one
se
nte
nce
to y
ou
rself o
r to a
ll of u
s
• D
escrib
e y
ou
r risk m
ana
ge
men
t pro
gra
m. (E
d w
ill act a
s o
ur s
crib
e).
• S
ingle
stre
ngth
of y
ou
r risk m
ana
ge
me
nt p
rogra
m.
• D
escrib
e h
ow
do
es y
ou
r Bo
ss d
escrib
es y
ou
r risk m
ana
ge
me
nt p
rogra
m.
• D
o y
ou
do
en
ou
gh
expo
su
re id
en
tificatio
n in
yo
ur jo
b?
•
Are
yo
u a
wa
ke
a
t n
igh
ts w
on
de
ring if
yo
ur
risk m
ana
ge
men
t p
rogra
m is
re
ason
ab
le fo
r yo
ur
co
llege
or u
niv
ers
ity.
• W
hat d
o y
ou k
now
abo
ut y
our b
usin
ess-th
e b
usin
ess o
f co
lleg
e a
nd u
niv
ers
ity o
pe
ratio
ns?
Wha
t are
so
me
of th
e e
xp
osu
res?
• D
escrib
e h
ow
yo
u m
ay a
pp
roa
ch
exp
osu
re id
en
tifica
tion
in y
ou
r risk m
an
age
me
nt p
rogra
m a
fter
yo
u re
turn
to h
om
e b
ase
afte
r this
co
nfe
ren
ce
. (Ed
will a
ct a
s o
ur s
crib
e).
• D
escrib
e h
ow
yo
u m
ay m
ove
from
a s
olo
and
silo
risk m
an
age
r to p
layin
g ris
k m
an
agem
en
t as a
te
am
spo
rt?
14
. Ex
po
su
re T
oo
l Bo
x S
lide
Le
t’s c
reate
an
exp
osure
too
lbo
x. (E
d a
s s
crib
e to
write
do
wn
idea
s)
WK
A/E
F id
ea
s to
be
sh
are
d a
s e
xp
osu
re id
en
tificatio
n to
ols
U
se
a b
usin
ess p
lan
ap
pro
ach
to
yo
ur a
nnu
al g
oa
ls a
nd
ob
jectiv
es m
ake
su
re th
at E
xp
osu
re
Ide
ntific
atio
n is
#1.
E
ntitie
s-S
tate
co
rpo
rate
d
ata
ba
se
. W
KA
clie
nt
(ne
w C
FO
) d
id n
ot
kn
ow
o
rga
niz
atio
n h
ad
2
ad
ditio
na
l entitie
s-fo
und
by lo
okin
g a
t fina
ncia
l rep
ort. O
the
r did
no
t kn
ow
of o
the
r entitie
s a
ctiv
e
an
d in
activ
e (ta
il exp
osu
re) b
ut fo
un
d w
he
n W
KA
revie
we
d c
orp
da
tab
ase
.
T
alk
to
in
-hou
se
e
xp
erts
w
he
n
ava
ilab
le-d
o
no
t ju
mp
to
in
sura
nce
m
echa
nis
m
sim
ply
b
y
co
nclu
din
g o
n y
ou
r ow
n w
e h
ave
an
exp
osu
re-
S
afe
ty ris
k c
om
mitte
es-c
olla
bo
rativ
e effo
rts to
kno
w w
ha
t’s g
oin
g o
n. G
et a
se
at
at th
e ta
ble
(F
lee
t Ope
ratio
na
l Assu
ran
ce
co
mm
ittee
) Le
ga
l sta
ff
6
Rea
d y
ou
r insu
ran
ce
po
licie
s (R
TP
), ob
vio
usly
to u
nd
ers
tan
d c
ove
rage
, bu
t equ
ally
impo
rtan
t to
un
de
rsta
nd
wh
at is
exclu
de
d, lim
ited
, restric
ted
an
d s
o o
n. T
he re
stric
tive
pa
rts o
f an in
su
ran
ce
po
licy p
oin
t ou
t exp
osure
s th
at m
ay 1
-ma
y h
ave
no
t be
en
ide
ntifie
d in
pa
st a
nd
2-th
at m
ay n
eed
to
be
de
alt w
ith w
he
the
r insu
rab
le o
r no
t.
W
alk
aro
und
F
ina
nce
sta
ff-ne
w in
itiativ
es
A
thle
tic-n
ew
initia
tive
s
R
ese
arc
h/g
ran
t ne
w in
itiativ
es (w
ho
will o
wn
pa
tien
ts, B
II issue
s, e
mb
ezzle
me
nt is
sue
s)
C
am
pu
s c
om
pu
ter n
etw
ork
an
d u
se
of c
lou
d (p
riva
cy, b
usin
ess c
on
tinu
ity)
S
tude
nt n
ew
sp
ape
r (libe
l-glo
ba
l issue
s if w
eb
ba
sed
and
effe
ct o
n re
pu
tatio
n)
C
ertific
ate
s o
f insu
rance
-wh
y is
yo
ur firm
be
ing a
ske
d to
pro
vid
e a
co
nfirm
atio
n o
f co
ve
rage
to
oth
er o
rga
niz
atio
n. C
ertific
ate
s o
f Insu
ran
ce
-wh
y is
the
oth
er e
ntity
pro
vid
ing a
co
py to
us?
Wha
t a
re th
ey d
oin
g fo
r yo
ur o
rga
niz
atio
n?
C
lery
R
ep
ort-(w
ha
t d
oe
s th
e in
fo m
ea
n in
te
rms of
rep
uta
tion
a
nd
p
ossib
le effe
ct
on
fu
ture
a
dm
issio
ns)
F
ire s
afe
ty re
po
rts/In
su
ran
ce
co
mp
an
y e
ngin
ee
ring
(do
yo
u g
et th
e s
am
e le
ve
l of in
form
atio
n o
n
yo
ur fo
reig
n c
am
pu
se
s)
R
em
em
be
r th
e ‘6
0’s
sa
yin
g “Q
ue
stio
n a
uth
ority
” w
he
n qu
estio
n in
su
ran
ce
ap
ps-w
ha
t d
o th
ey
me
an
? H
ow
are
qu
estio
ns a
nsw
ere
d?
Lo
ok c
lose
ly a
t Ye
s a
nd
No Q
&A
. Hosp
ital is
sue
re v
ide
o
tap
e-“a
re s
cop
e s
urg
ical p
roce
du
res ro
utin
ely
vid
eo
tape
d?
No. S
oun
ds b
ad. N
o w
e d
o n
ot. B
ut it
turn
ed o
ut th
at th
e h
osp
ital to
ok s
till pic
ture
s o
f the
pro
ced
ure
s. S
o e
xp
osu
re to
insu
rer w
as b
ette
r th
an
first th
ou
gh
t. Ove
rloo
ke
d b
y p
rior ris
k m
an
agem
ent s
taff a
s w
ell a
s c
on
su
lting firm
with
a +
20
ye
ar re
latio
nsh
ip.
Indu
stry
pe
riod
ica
ls: B
I, Ris
k a
nd
Insu
ran
ce
, RIM
S m
aga
zin
e
C
on
ce
rns o
f risk m
ana
ge
men
t pe
ers
in o
the
r ind
ustrie
s: b
an
kin
g, m
an
ufa
ctu
ring, tra
nspo
rtatio
n,
sto
rage
, etc
. The
80
/20
rule
of e
xp
osu
re.
C
rea
te
yo
ur
ow
n
un
iqu
e
risk
ma
na
ge
men
t te
mp
late
-RIM
S,
UR
MIA
, U
E,
AC
OR
D
Ap
ps,
hire
so
meo
ne
to a
ssis
t yo
u. U
se it a
s y
ou
wa
lk th
e c
am
pu
s, re
vie
w y
ou
r we
bsite
, take
it to m
eetin
gs,
dis
cuss is
sue
s a
t regio
na
l UE
, UR
MIA
mee
tings a
nd
so o
n.
L
oo
kin
g fo
r an
d u
nd
ers
tan
din
g e
xp
osu
re to
loss is
no
t the s
am
e a
s b
ein
g ris
k a
dve
rse.
Be
ing
co
gn
itive
of e
xp
osu
re to
loss in
su
rab
le o
r not a
llow
s y
ou
to e
va
luate
on
a ris
k/re
wa
rd b
asis
W
ha
t are
up
an
d c
om
ing
ca
mp
us e
xp
os
ure
s.
What c
an
we
as ris
k m
ana
ge
rs d
o to
lea
rn a
bo
ut th
ese
exp
osu
res, m
ake
su
re tre
atm
en
t is b
ein
g
co
nsid
ere
d w
he
the
r insu
rab
le o
r no?
Are
yo
u c
om
forta
ble
tha
t yo
u u
nd
ers
tan
d th
ese
exp
osu
res
L
oss o
f pe
rson
al in
form
atio
n-h
ard
co
py a
nd
e-fo
rmat
C
am
pu
s v
iole
nce
C
lou
d s
tora
ge
and
loss o
f da
ta a
nd
effe
ct o
n re
se
arc
h
S
tude
nts
ab
roa
d a
nd fo
reig
n h
ou
sin
g
S
tude
nts
and
facu
lty a
bro
ad
-Kid
nap
S
tude
nts
and
facu
lty a
bro
ad
-eva
c fro
m h
ot s
po
ts
A
ge
dis
crim
ina
tion
-em
plo
ye
es-fa
cu
lty a
nd o
the
rs
F
ailu
re to
info
rm s
tud
en
ts o
f poo
r job
pro
spe
cts
for c
erta
in m
ajo
rs
R
ese
arc
h a
nd
or g
ran
t activ
ities c
on
du
cte
d b
y fa
cu
lty-is
the
sch
oo
l vic
ario
usly
liab
le fo
r the
actio
ns
of th
e fa
cu
lty fo
r the
se
en
de
avo
rs
“Ahoy Matey-Take the Tiller and
Maintain Due Course through
Exposure Identification”
Edward Frackiewicz, ARM
Director Risk Management
The Boston Consortium for Higher Education, Olin College
William K. Austin, CRIS
Principal and Consultant
Austin & Stanovich Risk Managers LLC
October 3, 2012
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
Our Expectations • Become better risk managers through exposure ID skills.
You cannot manage what you do not know!!!
• Class participation-Share stories-when things work and as
well as when things do not work.
• Discussion of risk management topics more important
than colorful PowerPoint Presentation.
• Updated PowerPoint: Add ideas from today!
URMIA?
www.austinstanovich.com by 10/15/12
Boston Consortium?
• .
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
1. Review and analyze Exposure to loss.
2. Evaluate alternative risk management
techniques.
3. Select the most appropriate/efficient
techniques
4. Implement the chosen techniques.
5. Monitoring the results, revise as required
and start over again with exposure
identification.
The Risk Management Process
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
Risk Management Process as a Daily Activity
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
So many definitions-so little time
Exposure defined from IRMI:
“The state of being subject to loss because of
some hazard or contingency”.
What Do We Mean by “Exposure”?
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
“Risk” from IRMI: “A term of many meanings.
Two of the principal meanings are 1. Uncertainty
and 2. a subject of insurance (e.g. building)
sometimes also referred to as an exposure unit or
unit of exposure.”
“Loss” from IRMI: “the basis of a claim for
damages under the terms of a (insurance) policy.”
Other Definitions/Ideas from the Group
What do we mean by “Risk” and “Loss”
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
The process starts with exposure identification and comes back
to exposure identification.
Continually check to determine what is new to organization-
growth, new endeavors, new trends in litigation, etc.
Risk management is a team sport: It takes more than a risk
manager to manage risk.
To manage risk one must first manage activities.
What do you do to manage risk through Exposure ID?
Key Points: Risk Management Process
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
Crash-Boom-Bang
Exposure Identification and the 5 Senses
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
Silence
Exposure Identification: 5 Senses PLUS 1
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
• In one sentence describe your risk
management program.
• What is a key strength of your program
• In one sentence how would your Boss
describe your risk management program.
• How do you rate your OVERALL risk
management program?
Moment of Truth
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
Exposure Tool Box
Entities-for whom do you manage risk
Create networks
Join other’s monthly meeting
Certificates of Insurance
Walking Around
Insurance Applications
Create an exposure survey
External: Peer group, other industries (80/20 Rule)