PDA using MyiLibrary Mary S. Woodley Oviatt Library CSU Northridge mary.woodley@csun
MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk...
-
Upload
deirdre-terry -
Category
Documents
-
view
217 -
download
0
Transcript of MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk...
![Page 1: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/1.jpg)
MANAGING BUSINESS RISKSAN OVERVIEW
CSU, NorthridgeJanuary, 2004
Chris Brady
University Risk Manager
![Page 2: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/2.jpg)
WHAT IS RISK MANAGEMENT?
Risk: The organization’s exposure to accidental loss.
Management: Planning, organizing, Leading and controlling.
“Everyone on campus must be a risk manager.”
![Page 3: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/3.jpg)
Classic risk management is no longer adequate
![Page 4: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/4.jpg)
IN ORDER TO MANAGE RISK EFFECTIVELYYOU MUST………
Understand risks associated with your objective. Understand your role as a part of the CSUN Risk
Management Team. Expand your knowledge base of risk
management principles. Take an active role in the risk management effort
at CSUN. Seek creative solutions to risk management
issues.
![Page 5: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/5.jpg)
Why Managing Risk Is Important
Accountability Raises Awareness Financial impacts
Program cuts Premiums Deductibles Claims
![Page 6: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/6.jpg)
CSUN Insurance Contributions (Premiums)
0200000400000
600000800000
10000001200000
1400000160000018000002000000
1997/98 1998/99 1999/00 2000/01 2001/02 2002/03
LiabilityWork CompIDL, NDI, UIAthleticProperty
![Page 7: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/7.jpg)
CSUN Insurance Contributions (Premiums)
$4,169,434
![Page 8: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/8.jpg)
Benefits of Hands-OnRisk Management
Increases awareness of objectives Puts focus on mission critical objectives Clear understanding of responsibility &
accountability Improves cross-functional communication Creates a sense of TEAM-OWNERSHIP Early identification of risks can result in mitigation
activity that significantly reduces exposure
![Page 9: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/9.jpg)
SIX STEPS OF RISK MANAGEMENT
1. Identify and Analyze Exposures 2. Analyze Feasibility of Alternative
Techniques 3. Select Method of Risk Control 4. Implement Chosen Techniques 5. Monitor Results 6. Modify Techniques
![Page 10: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/10.jpg)
STEP 1 – Identify & Analyze
Exposures
Identification Tools: Loss History Program Outlines Annual Budget Meeting Agendas Purchase Agreements Inspection and Maintenance Records Contracts and Leases
![Page 11: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/11.jpg)
STEP 2:Feasibility of Alternative
Techniques
Avoidance Transfer of Risk Retention of Risk
Reduce Risk through Loss Reduction Efforts Finance Retained Risk
Define Meaningful Standards and Expectations
![Page 12: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/12.jpg)
STEP 3 Evaluate Loss Potential
Evaluation Techniques Frequency/Severity of Claims Publications/Periodicals/Other Universities Political/Litigation Climate Anticipate
![Page 13: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/13.jpg)
MITIGATION OPTIONS
Control It (prevention & detection techniques)
Share It (co-source; warrants; guarantees)
Transfer It (insurance; hold harmless contracts)
Avoid It (process re-design; eliminate process)
Accept It (cost/benefit analysis)
Residual Risk (Opportunity To Manage)
![Page 14: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/14.jpg)
STEP 4 – Implement Chosen Technique
Management Support Documentation and Notification Governing Board Approval for
Major Actions Develop Policies and Procedures
![Page 15: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/15.jpg)
STEP 5 – Monitor Results
Compare Actual Results to Anticipated Results
Consider Environmental Changes Keep Records/Documents
![Page 16: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/16.jpg)
STEP 6 – Modify Techniques to Reflect
experience
Document Decision Making Process Maintain a Safety/Loss Control Program Continue to Monitor Results Start over at Step 1 !!!
![Page 17: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/17.jpg)
CURRENT CHALLENGES
•Changing environment – remodel
•Budget issues – Circumvent procedures/taking shortcuts
•Policies & Procedures – Clearly defined
•Safety environment – Constant changes
•Communication – Sharing of information
•Equipment – Purchasing & Insurance requirements
Maintain a teamwork philosophy, share information, focus on the objective of the college and the impact to future programs.
![Page 18: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/18.jpg)
RISK RELATED ACTIVITIES
• Lab Environment• Project design & testing• Competitions• Internships• Field Trips
Proper planning, training and supervision for these types of activities will significantly reduce the risk of loss, damage or injury.
![Page 19: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/19.jpg)
•Insurance Issues
•Risk Assessments
•Ergonomic Assessments
•Compliance Monitoring
•Claim Management
•Training & Staff Development
For Assistance With:
Insurance & Risk Management at ext. 2401
![Page 20: MANAGING BUSINESS RISKS AN OVERVIEW CSU, Northridge January, 2004 Chris Brady University Risk Manager.](https://reader036.fdocuments.in/reader036/viewer/2022062517/56649f115503460f94c2445a/html5/thumbnails/20.jpg)
Questions & Answers