Risk??

1. Risk?? Every employee a risk manager!!

2. Is risk good or bad? • Is the goal elimination of all risk? • Do we insure all risk? • Or do we manage risk?

3. Risk return and BYU-I • We take risks at BYU-I with the intent of getting something back that justifies the risk. • Investment in the new auditorium and MC addition is taking a risk • Opportunities for gathering and shared spiritual/learning experiences • More interaction & teaching among students • Hoping the $millions will provide an appropriate benefit

4. Risk Management • Process of measuring or assessing risk and then developing strategies for managing risk. • Transferring risk • Avoiding risk • Reducing negative effects of risk • And accepting some risks with the inherent consequences • Deal with highest loss and/or probability first

5. Informal Risk Management • Most of the risk management is informal • The process is the same • Often done on the fly • Rightfully we rejects some risky activities • In some cases risk is accepted unwisely • In others a moderate risk is accepted due to the potential benefits

6. Intangible Risk • Deficit knowledge – Not knowing what is going on in departments • Relationship risk – reduces effectiveness • Operation ineffectiveness • Reputation risk • Violations of law • Anything that reduces institutional ability to achieve its mission

7. Hiring • Each time a new employee is hired, the institution is taking a risk – with the expectation that the employee will add value to the mission of the university knowing some might not

8. Examples – Risk Management • Each time a grounds keeper insists that a student employee wear ear plugs and protective eye wear • Each time and employee locks his office or computer • When an account steward reviews financial activity reports • When employees learn and adhere to travel policy

9. Faculty • Each time a faculty member uses a new teaching method risk is being taken with the expectation that the learning experience will be enhanced. But there is some potential for a decline in the learning experience or other negative fallout.

10. Okay, so what? • Don’t take risks that do not provide a commensurate return. • Don’t take risks where the loss potential is too high. • Don’t take unnecessary risks. • Don’t take risks you are not authorized to take.

11. Words can haunt us and embarrass the university and church • Be thoughtful about what you say particularly in a public/classroom setting. • If you would not want it quoted in the scroll or national news, it might be best left unsaid.

12. Be observant • If you note a physical hazard on campus, call the safety office and voice a concern – train others to do the same. • If students or employees are involved in something that includes unwarranted danger (physical, property, reputation) speak-up,

13. Faculty • Experiential learning is a good thing but: • Make sure the value justifies the risk/cost • If a walk gets the job done then forget the bungee jumping • If travel adds little value then don’t travel • Assess the risks and rewards associated with each activity or program

14. Things to Remember • There are only two or three people on this campus who are authorized to acknowledge university liability. • Never say “the university will cover that”. • Never say “I am sure the university has insurance for that injury or other issue”. • Direct potential claimants to the Safety Office or to Financial Services

15. Manage Risk • As you fulfill your responsibilities be risk aware. • Measure and assess • Transfer risk if prudent - insurance • Avoid uncompensated risk • Reduce/mitigate risk where possible • Know and comply with University policy

16. You are a risk manager!Teach those you work with that they too are risk managers. Remember