Office of Risk Management Annual Conference What is Risk Management?
17
Office of Risk Management Annual Conference What is What is Risk Management? Risk Management?
-
Upload
gwendoline-floyd -
Category
Documents
-
view
225 -
download
5
Transcript of Office of Risk Management Annual Conference What is Risk Management?
Office of Risk Management Annual Conference
What isWhat isRisk Management?Risk Management?
Office of Risk Management Annual Conference
Overview
•Define Risk Management
•Define and give examples of Risk
•Identify and give examples of Exposures
•Identify Methods of Exposure Identification
•Implement Risk Management
•Define and employ ORM’s Mission
Office of Risk Management Annual Conference
What is Risk Management?
Risk management is a process that helps identify risks in order to minimize losses.
It uses a logical method to identify, analyze, resolve and monitor the risks in an organization.
The most important step is to IDENTIFY the risks in your agency operations.
Office of Risk Management Annual Conference
Risk is anything that:
•can hinder an organization from functioning efficiently and from achieving its mission
•can cause harm to the company's employees, assets, or clients
•can cause a financial loss to an organization
What is Risk?
Office of Risk Management Annual Conference
What is Risk?
Examples of Risk at a State agency:
•An employee is injured on the job
•A fire breaks out in a building
•An employee is involved in an automobile accident
•A client steals money or property
•A board makes a wrong decision
•A former employee sabotages a computer system
Office of Risk Management Annual Conference
Managing Your Risk
To manage your agency’s risks, identify your exposures.
Types of Exposure:
People
Property
Liability
Money
Office of Risk Management Annual Conference
Exposures: People
Examples of losses involving people:•An employee makes a financial recording error•A contractor does not complete a project•A client is injured while you were providing services•Someone is injured when entering your building
Office of Risk Management Annual Conference
Owned buildings
Number of vehicles
Computer equipment used in your operations
Exposures: Property
Examples of property losses:•Your building burns•A vehicle is damaged in an accident•A virus crashes your computer system*These types of exposures are reported on your semi-annual property exposure report
Office of Risk Management Annual Conference
Exposures: Liability
Examples of liability losses:•Duty to protect the public•Duty to provide services accurately and timely•Slips and Falls•Contracts with outside organizations create liability exposures
Office of Risk Management Annual Conference
Cash on hand
Business Income - $ that could not be collected due to a property loss
Exposures: Money
Examples of money losses:•Petty cash•$ Collected (i.e. ticket sales, tuition fees, rental income)•Crime – theft by third parties•Bond – theft by employee
Office of Risk Management Annual Conference
Methods of Exposure Identification
ORM Exposure Reports:- Property - Aviation
- Online - Wet Marine
Industry-Specific Checklists
Policies and Procedures Review
Contract Review
Safety Audits/Compliance Reviews
Repeat Claims
Office of Risk Management Annual Conference
Implementation of Risk Management
The process of risk management is a joint effort between ORM and each State agency.
Each participant plays a vital role in the process.
Agencies are responsible for identifying and communicating their risks and exposures to ORM.
ORM will assist the agency with risk analysis and recommendations to handle various risks.
Office of Risk Management Annual Conference
ORM’s Mission
The mission of the ORM is to develop, direct, achieve and administer a cost effective comprehensive risk management program for all agencies, boards and commissions of the State of Louisiana and for any other entity for which the state has an equity interest, in order to preserve and protect the assets of the State of Louisiana.
Office of Risk Management Annual Conference
The Office of Risk ManagementAdministration/Purchasing
Accounting
Contracts
Statistics
IT
Claims
Underwriting
Loss Prevention
Office of Risk Management Annual Conference
Contact Us: UnderwritingSusan WestState Risk [email protected] | Email(225) 342-6031 | Phone
Office of Risk Management Annual Conference
Donald MartinStatistics [email protected] | Email(225) 342-3420 | Phone
Shannon [email protected] | Email(225) 342-8471 | Phone
Contact Us: Statistics
Office of Risk Management Annual Conference
Questions?
