Risk Management (RM) is responsible for planning, organizing, leading and controlling the resources and activities necessary to recover from accidental losses. The goals of RM are achieved through the Risk Management Process.

There are six steps in the Risk Management Process:

• Step 1: Identifying Loss Exposures
• Step 2: Analyzing Loss Exposures
• Step 3: Examining the Feasibility of Risk Management Techniques
• Step 4: Selecting the Appropriate Risk Management Techniques
• Step 5: Implementing the Selected Risk Management Techniques
• Step 6: Monitoring Results and Revising the Risk Management Program
  

RISK ASSESSMENT

The first two steps listed above are also referred to as Risk Assessment. Assessments are carried out by reviewing documents, such as agreements, financial statements, loss histories, and questionnaires, and conducting inspections. Gathering information on past losses facilitates the statistical analyses necessary for RM to quantify and prioritize the various loss exposures to be managed.

Loss exposures can be grouped into the following categories:

• Property Loss Exposures
• Liability Loss Exposures
• Personnel Loss Exposures
• Net Income Loss Exposures
  

RISK CONTROL AND RISK FINANCING

The third step in the risk management process allows RM to determine which techniques to use to address various loss exposures faced by the University. These techniques are divided into Risk Control and Risk Financing. Risk Control can be broadly defined as actions, including decisions not to act, that reduce the frequency and severity of losses. Risk Financing is the decision to retain or transfer (or some combination of both) the financial responsibility to pay for losses. A deductible is an example of risk retention, while insurance is an example of risk transfer.

Risk Control is a responsibility shared amongst many departments within the University. Claims administered by RM, safety training conducted by Environmental Health & Safety, sprinkler systems installed by Facility Operations, contracts reviewed by the Office of the General Counsel, and quality assurance reviews conducted by Institutional Compliance illustrate the many ways in which Risk Control is carried out by the University.

RM is primarily responsible for Risk Financing, including the management of the University's insurance program, and establishing guidelines for indemnification and insurance provisions with the assistant of the Office of the General Counsel. The University maintains several insurance policies to transfer the payment of losses associated with auto liability/physical damage, general liability, management liability, property loss, and workers compensation.