1

UNIVERSITIES of AUSTRALASIA

BENCHMARKING RISK MANAGEMENT

BILL DUNNE

DIRECTOR RISK MANAGEMENT

UNSW.

PROUDLY SPONSORED BY UNIMUTUAL

2

INTRODUCTION BENCHMARKING.. 2001

UNIVERSITIES BENCHMARKING PROJECT….THE CONCEPT

BACKGROUND INFORMATION

ANALYSE RESULTS

WHAT THE RESULTS HAVE ACHIEVED

WHERE TO FROM HERE?

3

BENCHMARKING DEFINED

AN ONGOING PROCESS FOR RIGOROUSLY MEASURING YOUR PERFORMANCE VERSUS THE BEST IN CLASS AMONGST YOUR PEERS,

AND CREATIVELY APPLYING THE RESULTS OF THIS ANALYSIS TO MEET AND SURPASS THE BEST IN CLASS.

4

THE RISK MANAGEMENT PROCESS. AS/NZS 4360.

IDENTIFY EXPOSURES

ANALYSE / ASSESS /PRIORITIZE / TREAT

MONITOR AND REVIEW

5

6

PARTICIPATION

2001…….18 UNIVERSITIES FROM AUSTRALIA, AND 1 FROM NEW ZEALAND

2000…….18 UNIVERSITIES FROM AUSTRALIA, AND 3 FROM NEW ZEALAND

7

FORMAT

COMPUTER BASED

INDEPENDENT DATA MANAGER

CONFIDENTIALITY ASSURED

ANSWER ONLY FORMAT

RESULTS COLLATED BY MANAGER

RESULTS TRANSMITTED ELECTRONICALLY AS AN E-MAIL ATTACHMENT

8

9

MANAGEMENT REPORT GRAPHICAL REPRESENTATIONS SHOWING

RATINGS, ABOVE AND BELOW AVERAGE

COMPARISON OF EACH ELEMENT AGAINST BEST PRACTICE AND GROUP AVERAGE

10

SOME PROBLEMS WITH SELF ASSESSMENT

LACK OF OBJECTIVITY

YOU CAN BE TOO EASY ON YOURSELF

OR TOO HARD ON YOURSELF

11

12

13

WHAT DO YOU DO WITH THE DATA

DON’T JUST LOOK AT THOSE ELEMENTS THAT YOU PERFORMED POORLY IN

CRITICALLY EXAMINE YOUR GOOD RATINGS AGAINST YOUR EXPECTED RESULTS

14

RISK MANAGEMENT GOAL SETTING

WHAT WILL I TARGET

WHAT IS MY TARGETTED % IMPROVEMENT

WHAT PROCESSES WILL I USE

WHAT IS MY TIMEFRAME FOR REACHING MY TARGET[S]

HOW MANY $$$$$$$ WILL I SAVE

15

OUR GOAL

10% IMPROVEMENT

16

IDENTIFY AREAS FOR IMPROVEMENT

COST BENEFIT ANALYSIS

LIKELIHOOD

CONSEQUENCES

COST OF RECTIFICATION

17

RISK MANAGEMENT GOAL SETTING

RESPONSIBLE PERSON

DUE DATE FOR EACH JOB

PROJECT COMPLETION DATE

18

19

INDIVIDUAL RESULTS

SIXTEEN UNIVERSITIES PARTICIPATED IN BOTH 2000 AND 2001

14 IMPROVED THEIR PERFORMANCES

20

AVERAGE OVERALL RESULT

2000…..72.5%

2001…..76.7%

IMPROVEMENT …..4.2%

21

22

23

CONFIDENTIALITY

UNIVERSITY OF NSW RESULTS

24

25

26

UNIVERSITY OF NEW SOUTH WALES

LOSS PREVENTION………….+13.0%

OH&S…………………………..+11.8%

LABORATORY SAFETY……..+17.1%

ASSET PROTECTION…………+12.1%

SECURITY……………………...+10%

27

UNIVERSITY OF NEW SOUTH WALES

WORKERS COMPENSATION…..+15.9%

REHABILITATION……………….+13.8%

CLAIMS MANAGEMENT……….+13.8%

28

UNIVERSITY OF NEW SOUTH WALES

CHEMICAL SAFETY……….-5.0%

FLEET MANAGEMENT…NO CHANGE

29

UNIVERSITY OF NEW SOUTH WALES

OVERALL RESULT

+11.9%

30

ASSESSMENT

MEASURING PROCESS….NOT OUTCOMES

31

EXPECTED OUTCOMES

REDUCTION IN CLAIMS (FREQUENCY/SEVERITY)

REDUCTION IN COSTS

CULTURE CHANGE

IMPROVED RISK PROFILE

32

THE BOTTOM LINE CLAIMS FREQUENCY

PROPERTY………….-38.5%

LIABILITY…………..-51.7%

CONTRACTORS…….-60.0%

MOTOR VEHICLE…..-53.8%

33

THE BOTTOM LINEWORK RELATED ACCIDENTS

MINOR REDUCTION IN FREQUENCY

MAJOR REDUCTION IN SEVERITY

WORKERS COMPENSATION CLAIMS ESTIMATES REDUCED BY >$1,000,000

34

THE BOTTOM LINE INSURANCE

ISR… IMPROVED LEVELS OF INDEMNITY …REDUCED PREMIUM

LIABILITY… REDUCED PREMIUMS DESPITE A HARDENING MARKET

35

BENEFITS OF SUCCESSFUL BENCHMARKING

IMPROVED GOAL SETTING

OVERCOME DISBELIEF

ACCOUNTABILITY

CULTURE CHANGE

36

WHERE TO FROM HERE ?

BENCHMARKING SHOULD NEVER BE CONSIDERED STATIC

37

FUTURE BENCHMARKING TOPICS

ANY SUBJECT THAT YOU THINK IS

WORTHWHILE

38

CRITERIA

SIGNIFICANT RISK EXPOSURE

STANDARD FOR BEST PRACTICE

KEY PERFORMANCE INDICATORS

39

SOME EXAMPLES

INTELLECTUAL PROPERTY

I.T. RISKS

DISASTER CONTINGENCY PLANS

LOSS OF REPUTATION

LOSS MITIGATION

CONTRACT RISKS

40

WHAT NEXT

REVIEW IMPROVEMENT PROGRAM

NETWORK WITH OTHER UNIVERSITIES IN THE PROGRAM

MONITOR PERFORMANCE

41

CONTACT DETAILS

William Dunne

Director of Risk Management

UNSW

Sydney NSW 2052

Phone (02) 93851414

Fax, (02) 96634203

Email w.dunne@unsw.edu.au

THE END