Risk Management “101” Terminology

1. Risk Management “101” Terminology Presented for Wisconsin 4-H Youth Development Staff Youth Emphasis April 2005

2. Potential Liability Risks • Negligence Failure to use that degree of care which an ordinary person of reasonable prudence would use under the given or similar circumstances. A person may be negligent by acts of omission or commission or both. • Assault and battery The threat to use force upon another and the carrying out of the threat. • False arrest and imprisonment False arrest is an arrest not justifiable under law. Imprisonment is to put in or as if in prison; confine. • Invasion of privacy To encroach or intrude upon personal information or space of an individual that is not open to public life; violate.

3. Potential Liability Risks • Defamation Defamation is a legal action sounding in tort based on an intentional or reckless public false statement that injures another person's reputation. Libel and slander are types of defamation. • Libel A written statement about someone which is personally injurious to that individual. • Slander A spoken statement about someone which is personally injurious to the individual. • Violation of constitutional rights To break, intentionally or unintentionally, the rights guaranteed to individuals by the United States constitution.

4. Risk Management Strategy Risk Management Techniques • Reduce To lessen in extent, amount, number, degree, or price. To gain control of. An organization concerned about the lack of male and female chaperones for an overnight camping trip may decide to host a day-long hike and picnic instead. • Avoid Taking steps to remove a hazard, engage in an alternative activity, or otherwise end a specific exposure. An organization concerned about the lack of male and female chaperones for an overnight camping trip may decide to cancel/postpone the trip.

5. Risk Management Strategy Risk Management Techniques • Transfer Shifting all or part of a risk to another party. Insurance is the most common method of risk transfer, but other devices, such as hold harmless agreements, also transfer risk. An organization concerned about the lack of male and female chaperones for an overnight camping trip may decide to require that all the parents chaperone the trip. • Assume To take upon oneself; undertake. An organization concerned about the lack of male and female chaperones for an overnight camping trip may decide that all the agents of the organization chaperone the trip.

6. Definitions • Waiver A rider waiving (excluding) liability for a stated cause of injury or sickness. A provision or rider agreeing to waive premium payments during a period of disability of the insured. The act of giving up or surrendering a right or privilege that is known to exist. • Disclaimers A repudiation or denial of responsibility or connection. A renunciation of one’s right or claim. • Incorporation To form into or organized and maintained as a legal business corporation.

7. Definitions • Bonding An insurance contract in which an agency guarantees payment to an employer in the event of unforeseen financial loss through the actions of an employee. • Tort A private wrong, independent of contract and committed against an individual, which gives rise to a legal liability and is adjudicated in a civil court. A tort can be either intentional or unintentional, and it is mainly against liability for unintentional torts that one buys liability insurance.

8. Information Prepared by: • Dave Pulda, Risk Manager, UW System Office of Safety and Loss Prevention • Debbie Beich, Risk Management Specialist, UW System Office of Safety and Loss Prevention