Risk management and insurance
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Risk Management and Insurance . Betty Coulter, RMPE Director of Risk Management February 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 . The Evolution of Risk Management.

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Risk Management and Insurance

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Risk management and insurance

Risk Management and Insurance

Betty Coulter, RMPE

Director of Risk Management

February 7, 2014

What is risk management

What is Risk Management ?

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

The evolution of risk management

The Evolution of Risk Management



  • 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


  • 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 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

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

Risk management and insurance program administration

Risk Management and InsuranceProgram Administration

  • Risk Assessment – Current and future operations/ activities

  • Provide Risk Management Consultation

  • Claims Management

  • Contract Review

  • Policy Development

    • Minors on Campus

    • Defensive Driving/MVR

  • Training

    • RMSS Emergency Manual

    • Minors on Campus Training Manual

    • Van Certification Training

Risk management and insurance

Risk Management and InsuranceProgram Administration

  • UNCC Insurance Program

    • Property, Auto, Workers Compensation, Contents

    • Other – Foundation Programs

    • Tort Liability and Defense of Employees Act

  • Risk Financing Strategies

    • Risk Transfer

      • Contractual

      • Insurance placement/purchase

      • TULIP

    • Retention

    • Avoidance

  • Record Management

  • Insurance Costs Allocation

Thank you

Thank You

Risk Management & Insurance

Department of Risk Management, Safety & Security

Betty Coulter, RMPE



Continuity of operations plans coop

Continuity of Operations Plans (COOP)

Shawn Kiley, MPA

Risk Management, Safety, & Security

Office of Business Continuity Planning

February 7, 2014

Continuity planning

Continuity Planning

Why do we (Institutions of Higher Education, IHE) need to worry about continuity?

  • Impact to campus, downtime

  • Business Continuity: Administrative Services, Research, Athletics, Auxiliary services, Housing, Parking

  • Academic Continuity: Online Courses, Classroom/Lab Spacing

Why do continuity planning

Why Do Continuity Planning?

  • It’s good business practice

    • Protects assets, cuts emergency costs, protects image

  • Part of risk management process

    • Prevent, protect, mitigate, prepare, respond, recover

    • Identify trends and predict risks

  • Promotes resiliency

    • Ability of an organization to absorb the impact of a disaster, and continue to function at a minimum acceptable level

    • Often the outcome of effective planning

Boston marathon bombing boston on lockdown

Boston Marathon BombingBoston on Lockdown

  • “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


2012 hurricane sandy

2012: Hurricane Sandy

NOAA Satellite Image, October 29, 2012.

Inclement weather

Inclement Weather

Snow storms (2010) in DC area,

7-day closure

UNC Charlotte (2011) snow storm 3-day closure

UNC Charlotte (2014) snow storm

2-day closure

Analogous to a disaster

Analogous to a Disaster

  • If UNCC hosted DNC security and volunteers

    • 1,500 beds proposed

  • Impact to campus

    • Operational: Academic Semester, Move-in, various activities

    • Financial: 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)

What is business continuity

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)

Disaster impact timeline

Disaster-Impact Timeline

Business continuity strategy

Business Continuity Strategy

BC Strategy

Continuity of operations plans coop1

Continuity of Operations Plans (COOP)

  • Identify communications (including redundant methods)

  • List and confirm alternate locations and facilities for conducting operations

  • Response 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

Business impact analysis bia

Business Impact Analysis (BIA)

  • Determine the effect of interrupted services on each unit

  • Short and long-term effects of a disaster

    • Service

    • Revenue/expenses

    • Goodwill

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

Business continuity plan bcp

Business Continuity Plan (BCP)

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

    • Risk Assessment: vulnerabilities, gaps & mitigation

  • Resource allocation for prioritized functions

    • Based on prioritization of critical need

    • Promotes efficiency, effectiveness, customer service

The university of north carolina at charlotte

The University of North Carolina at Charlotte

Continuity challenges

Continuity Challenges

  • Continuing/restoring essential operations during/after emergency

    • What is essential in an academic setting?

      • Education: classroom and online classes

      • Research activities

      • Administrative tasks

      • Athletics and public activities

      • Support and other functions

  • How to prioritize resumption of services?

Completing your coop

Completing your COOP

  • List all of the critical functions/processes within the unit

  • Effect of loss of function/process

    • Loss of revenue/increased costs (cost per day)

    • Legal liability, fines/penalties, public harm

    • Loss of goodwill, other intangibles

  • Ability to operate at reduced efficiency

  • Recovery Time Objective (RTO)

  • Key dependencies

  • Contingency plans

Interdependency map

Interdependency Map

Relationships communication

Relationships & Communication

  • University partners

    • Colleges, departments, and units

  • Government partners

    • Local, county, state, federal

    • Constituent institutions of UNC System

  • Private sector partners (including non-Profits)

    • Hospitals, CRI-campus, American Red Cross

  • Associations

    • Professional organizations

Workshop 25 minutes

Workshop (25 Minutes)

  • Scenario Handout

  • Read and discuss the scenario/questions

    • Groups of 5 or 6

    • Select a group representative to report out what you have discussed

  • 15 minutes to discuss; 10 minutes to report out

Thank you1

Thank You

Office of Business Continuity Planning

Department of Risk Management, Safety & Security

Shawn Kiley, MPA



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