Providing Value-Added Risk Management. Accomplishing Operational and Strategic Goals

Transcription

1 Prviding Value-Added Risk Management Accmplishing Operatinal and Strategic Gals

2 Agenda Our Backgrund Early Successes and Value-Added Risk Management Q&A

3 Our Backgrund/Stry

4 Risk and Safety as an Additinal Duty The first Safety Officer fr TWU was in 1970s This was an additinal rle held by a Plice Officer Occupatinal safety and envirnmental safety were nt addressed in a cmprehensive way

5 Decentralized Risk Financing TWU allwed departments t purchase their wn insurance Multiple brkers fr institutin Duplicate plicies and cverage Increasing csts t institutin Plicies were nt strategically aligned t meet peratinal needs

6 Health and Safety Under Facilities In 2009, the university hired a Directr f Envirnmental Health and Safety that tk n the fllwing rles: Occupatinal safety prgrams Life safety prgrams Emergency preparedness and business cntinuity prgrams Lab safety prgram Hazardus waste prgram Bldbrne pathgen and radiatin safety prgrams Only ne persn fr EH&S until 2013 when tw additinal FTEs were prvided (1-EH&S Crdinatr and 1-EH&S Technician)

7 Emergency Management Has t Prve Wrth In May 2015, TWU hired a Directr f Emergency Management that was n a 12-mnth appintment and reprted directly t CFO Prvided space in DPS Given small budget Given 12 mnths t prve EM s necessity fr permanent prgram

8 Risk Takes Pririty at the University June 2015, Directr f EM reviewed prperty and aut plicies and discvered that the University was paying cmparable premium t larger universities fr similar cverage Discvered nt using SORM prgrams Discvered that brker used had been with university fr ver 20 years September 2015, University made switch t SORM prgram fr prperty and aut Saved university ver $400,000 in premium

9 Establishing Department f Risk Prpsed in January 2016 Lked t pull units tgether that frequently identified, cntrlled, and financed risk Lked at and evaluated ther universities as mdels Demnstrated the ptential additinal savings thrugh risk cntrl and financing strategies Prpsed bringing the fllwing units tgether: Risk services (Risk analysis and financing) Envirnmental Health and Safety Emergency Management Business Cntinuity

10 Establishing Department f Risk April 2016 VP f Finance and Administratin charged me with finding space and creating the first budget fr the department. Prvided a space plan t VP f Finance and Administratin with qutes fr renvatins Prvided budget fr new department s needs June 2016 VP f Finance and Administratin authrized wrk n renvatins and frmally established Department f Risk Management August 2016: Mved int new renvated space in Old Main Octber 2016: Began hiring staff fr the department

11 Establishing Department f Risk February 2017 began develpment f strategic plan March 2017 bid ut fr a new brker fr Insurance and Risk Management Services March 2017: Develped and began implementing lab inspectin prgram March 2017: Develped and began accident investigatin prgram April 2017 selected new brker April 2017: Received authrizatin frm VP f Finance and Administratin t create a risk retentin fund with premium savings May 2017: Cmplete and finalize strategic plan

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13 Successes and Value-Added Risk Management

14 Make Risk Management Mre Than Insurance Operatinal Risks What culd slw prductin? Are we being efficient with ur resurces? Physical Risks Assets and their lcatins Lcatin f facilities and the perils that exist (Ex: Hail and rf damage) Peple and their interactin with their wrk envirnment Strategic Risks Lk fr premium savings Reduce lsses (Bth direct and indirect)

15 Make Risk Management Mre Than Insurance Fr each risk have at least ne methd f financing it and ne methd fr cntrlling it. T gain supprt fr a risk cntrl, relate benefits t the department r area in which yu are needing their supprt.

16 Tying Risk t Strategic Initiatives Aligning department s strategic plan with university s initiatives Finding the pathway t Yes Example: Faculty wanting t take students t d health prfessin wrk internatinally Example: University wanting t grw its internatinal ftprint Example: Expanding enrllment yet tight budget fr building new buildings and majr renvatins

17 Tying Risk t Strategic Initiatives Cnnect risk strategies t measurable utcmes. Make the prcess flexible and adaptable t changes

18 Supprting Operatinal Decisins Critical t identify data that is imprtant t the rganizatin Turn data int infrmatin that is pwerful Have the data tell a stry Example: Wrker s Cmpensatin data and custdians Custdians cnsist f 52% f ur claims paid in last tw years 27 custdians turnver in last tw years Added cst f custdial peratins is apprximately $172,000 ver the last tw years (Just claims paid and turnver cst, des nt include prductivity lst during injury)

19 Generate Revenue and Increase Operatinal Efficiency Reducing the Ttal Cst f Risk t the rganizatin Lk fr premium savings Reduce lsses (Bth direct and indirect) Transfer risk when pssible Allcate risk t departments (Prvide visibility f cst) With mney saved, build a retentin fund Start a fund frm savings cllected frm lwering the ttal cst f risk. Have accunting set up the fund allwing it t cllect interest and becme an investment Eventually, use excess as incentive fr risk cntrl prjects

20 Generate Revenue and Increase Operatinal Efficiency Make sure yu are investigating each lss and agreeing t crrective actins with thse invlved Use cheap tls t aid in the prcess (Ex: Ggle Frms and Sheets) rm

21 Cntact Infrmatin Blake Abbe, MPA, CRM, CEM Executive Directr f Risk Management Texas Wman s University Phne: gabbe@twu.edu