50 Shades of Risk 2016 The Strategic World of Universities and Risks

1. 50 Shades of Risk 2016 The Strategic World of Universities and Risks Harry Rosenthal, Regis Mutual Management August 2016

2. Presenter - Harry Rosenthal Harry is the General Manager of Risk Management Services for Regis and Partners, the managers of Unimutual, a discretionary mutual of Australian universities and affiliates. He is the former Director of the Risk Management Unit of the University of New South Wales, and past President of the Australasian University Risk and Insurance Management Society (AURIMS), and serves on industry committees for the Australian New Zealand Insurance Institute and the Australian Nuclear Science and Technology Organisation. Currently he is the General Editor of Risk Management Today, Australia’s risk management professional newsletter, and is on the Faculty of Risk Management Advisory Board of ANZIFF. He course coordinates and teaches risk management subjects at UNSW and has published numerous articles on loss control and risk management related topics and is a frequent presenter at conferences and symposiums on risk, insurance and higher education loss exposures. General Manager, Risk Management Services, Regis Mutual Management Pty Ltd.

3. A Way to Discuss Risk 4% Maximum Level of Risk To Achieve Required Gains 3% Potential Gains 2% Required Gains To increase domestic postgraduate coursework student load by 2% per annum Level of Risk 0 Level of Risk -2% -15% Potential Losses Maximum Sustainable Losses

4. Unimutual Membership • 52 Members • 26 Universities • 25 associated entities incl: Research Institutes, Residential Colleges and Conservatoria of Music

5. 2016 Unimutual Members • AARNet Pty Ltd • Australian Genome Research Facility • Batchelor Institute for Indigenous Tertiary Education • Black Dog Institute • Emmanuel College • Fertility SA Pty Ltd • Grace College • Guild of Undergraduates University of Western Australia • Hunter Medical Research Institute • International House • UOMC Ltd • Menzies School of Health Research • Mitchell Conservatorium Inc • Swinburne University • University of Canberra • University of Newcastle • University of New England • University of Queensland • University of South Australia • University of Sydney • University of Tasmania • University of Western Australia • University of Western Sydney • University of Wollongong • Victoria University • Excelsior College • National ICT Australia Limited • Queensland Tertiary Admissions Centre Ltd • Translational Research Institute Pty Ltd • UniQuest Pty Ltd • Universities Admissions Centre (NSW&ACT) Pty Ltd • Universities Australia Ltd • University College Melbourne • UOM Commercial Ltd • University of Western Australia Sports and Recreation Assoc Inc • Wollongong Conservatorium of Music Ltd • Women's College within the University of Queensland • Welding Technology Institute of Australia Australian Catholic University Australian National University Bond University Charles Darwin University Charles Sturt University Deakin University Federation University Australia Flinders University Griffith University La Trobe University Macquarie University Monash University Murdoch University Southern Cross University

6. We Live & Work in a World of Risk Typical University in Australia • 426 Reported Accidents on Campus • 152 Employees Injured • 200+ Known Student Injuries • 219 Insurance Claims • 20 Fires on Campus • 100 Thefts on Campus • 7 Robberies on Campus • 2 Assaults on Campus • Research Misconduct incident

7. The Big Questions on Campus Today NOT • Am I helping to prepare my institution for the next 5 years? • Does my institution manage risk better in 2016 than in 2015? THEY ARE • Is my division safe? • Where is my funding coming from next year? • What’s the outcome/impact of the latest restructure?

8. Key Disruptions to Higher Ed Digital Technology Loss of Monopoly Australian Higher Education Everything is Contestable Integration With Industry Ernst & Young 2012

9. Strategy Begins With a Vision of the Future? 2034 • Nature of Workplace (Remember 20 years ago - 1994?) • Nature of Higher Education Needed to Support Future Workplace (students)

10. So What’s The Impact of the New Types of Management? AG suggests administrative expenses should not exceed 18%-20% of total expenses. NSW average is between 26.6% to 32.5%. NSW Audit Office 2014

11. Can We Answer These Questions? What Use Are We if We Can’t • Are we getting better or worse at managing risk? • Have our risk related initiatives paid off, and were they cost beneficial? • How do we compare to our peers, i.e. benchmarking? • Can we give the Board assurance that risks are being identified, managed and that improved outcomes are being achieved? • Activity vs outcomes

12. How Griffith U Looks to the Mutual

13. There is No Lack of Data Can This Be Useful in Understanding Risk Profiles?

14. Types of Dashboard Data? Some of the best risk related data sources in an organisation which meets these criteria includes: Workers Compensation data Insurance claims data Security data Secondary Sources Employee turnover rates Cost/ Time Overruns of large projects Level of Financial Reserves/ liquidity

15. Key Challenges in Risk Dashboards • Agreeing on “What is a proxy?” • Agreeing on how metrics are recorded (i.e. how rates are recorded) • Agreeing on “taking the long view” (some numbers don’t change much or often) • Tying risk programs and action in to dashboard outcomes.

16. Users of the Data Audit and Risk Committee – Assurance with teeth Finance Managers – Total cost of risk validation Executive Management – keeping strategy on track Security Managers – using data to allocate resources Risk Managers - outcomes of their tenure Internal Audit – move away from compliance to critical examination of risk in operations

17. Thank You