Transcript Title of Presentation - University of North Carolina at

Betty Coulter, RMPE
Director of Risk Management
February 7, 2014
The process of making and implementing
decisions that will minimize the adverse effects
of accidental losses on an organization.
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Transactional Approach
• Purchase insurance to cover risks
• Hazard-based risk identification and
controls
• Compliance issues addressed
separately
• Safety & emergency mgmt handled
separately
• “Silo” approach – risk mgmt is not
integrated across the organization
• Risk Manager is the insurance buyer
Risk is bad – focus is on
transferring risk
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A Broader Risk Mgmt Approach
• Greater use of alternative risk
financing techniques
• More proactive about preventing
and reducing risks
• Integrates claims mgmt, contracts
review, special event RM,
insurance and risk transfer
techniques
• Cost allocation used for education
and accountability
• More collaboration – as depts are
willing
• Risk Manager may be the risk
owner
Risk is an expense – focus is on
reducing cost-of-risk
Enterprise Risk Management
• A wide range of risks are discussed
and reviewed, including reputational,
human capital, strategic and
operational
• Aligns RM process with strategy and
mission
• May include “upside risks”
(opportunities)
• Helps manage growth, allocate
capital & resources
• Risks are owned by all & mitigated at
the department level
• Many risk mitigation & analytical
tools available
• Risk Manager is the risk facilitator
and leader
Risk is uncertainty – focus is on
optimizing risk to achieve goals
Risk Assessment – Current and future operations/
activities
Provide Risk Management Consultation
Claims Management
Contract Review
Policy Development
Minors on Campus
Defensive Driving/MVR
Training
RMSS Emergency Manual
Minors on Campus Training Manual
Van Certification Training
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UNCC Insurance Program
Property, Auto, Workers Compensation, Contents
Other – Foundation Programs
Tort Liability and Defense of Employees Act
Risk Financing Strategies
Risk Transfer
Contractual
Insurance placement/purchase
TULIP
Retention
Avoidance
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Record Management
Insurance Costs Allocation
Thank You
Risk Management & Insurance
Department of Risk Management, Safety & Security
Betty Coulter, RMPE
[email protected]
www.rmi.uncc.edu
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Shawn Kiley, MPA
Risk Management, Safety, & Security
Office of Business Continuity Planning
February 7, 2014
Continuity Planning
Why do we (Institutions of Higher Education, IHE)
need to worry about continuity?
Impact to campus, downtime
Business Continuity: Administrative Services,
Research, Athletics, Auxiliary services, Housing,
Parking
Academic Continuity: Online Courses,
Classroom/Lab Spacing
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Why Do Continuity Planning?
It’s good business practice
Protects assets, cuts emergency costs, protects image
Part of risk management process
Prevent, protect, mitigate, prepare, respond, recover
Identify trends and predict risks
Promotes resiliency
Ability of an organization to absorb the impact of a
disaster, and continue to function at a minimum
acceptable level
Often the outcome of effective planning
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Boston Marathon Bombing
Boston on Lockdown
RadicalCartogrophy.net
“City-wide shelter-in-place is advised. As this investigation unfolds, we
are advising all city-wide to shelter-in-place. Please understand we
have an armed and dangerous person(s) still at large and police are
actively pursing every lead in this active emergency event….All MBTA
service remains suspended at this time.”
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- April 19, 2013, 8:34 AM, ALERTBoston
NOAA Satellite Image, October 29, 2012.
Inclement Weather
Snow storms (2010) in DC area,
7-day closure
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UNC Charlotte (2011) snow storm
3-day closure
UNC Charlotte (2014) snow storm
2-day closure
Analogous to a Disaster
If UNCC hosted DNC security and volunteers
1,500 beds proposed
Impact to campus
Operational: Academic Semester, Move-in, various
activities
Financial: Bookstore , Food Services, Housing, &
Parking costs
Cost
$3 Million to recover losses
Morrill, Jim. “UNCC Offers Dorms to DNC,” The
Charlotte Observer (4/12/11)
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What is Business Continuity?
Continuity of Operations Plans (COOP)
Business Impact Analysis (BIA)
Risk Assessment (RA)
Business Continuity Plan (BCP)
It is not:
Emergency Management (EM)
Disaster Recovery (DR)
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Disaster-Impact Timeline
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Business Continuity Strategy
Executive Level Buy-In
Evaluation/Audit
Unit-Level COOPs
BC Strategy
Test, Training and Exercise
Program (TTE)
Department-Level BIAs
Department-Level Risk
Assessment
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Continuity of Operations Plans
(COOP)
Identify communications (including redundant
methods)
List and confirm alternate locations and facilities
for conducting operations
Response Plans (damage to vital records)
How they are kept (paper vs. electronic)
Where they are kept (open file vs. fireproof safe)
How to recover if they are damaged
Allow for succession and delegation of authority
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Business Impact Analysis (BIA)
Determine the effect of interrupted services on
each unit
Short and long-term effects of a disaster
Service
Revenue/expenses
Goodwill
Develops a strategy for the business unit and
parent organization, and entire institution
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Business Continuity Plan (BCP)
Integrate information from COOP, BIA, and Risk
Assessment, with strategies to develop plans for
continuity
Risk Assessment: vulnerabilities, gaps & mitigation
Resource allocation for prioritized functions
Based on prioritization of critical need
Promotes efficiency, effectiveness, customer
service
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The University of North Carolina at
Charlotte
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Continuity Challenges
Continuing/restoring essential operations
during/after emergency
What is essential in an academic setting?
Education: classroom and online classes
Research activities
Administrative tasks
Athletics and public activities
Support and other functions
How to prioritize resumption of services?
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Completing your COOP
List all of the critical functions/processes within
the unit
Effect of loss of function/process
Loss of revenue/increased costs (cost per day)
Legal liability, fines/penalties, public harm
Loss of goodwill, other intangibles
Ability to operate at reduced efficiency
Recovery Time Objective (RTO)
Key dependencies
Contingency plans
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Relationships & Communication
University partners
Colleges, departments, and units
Government partners
Local, county, state, federal
Constituent institutions of UNC System
Private sector partners (including non-Profits)
Hospitals, CRI-campus, American Red Cross
Associations
Professional organizations
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Scenario Handout
Read and discuss the scenario/questions
Groups of 5 or 6
Select a group representative to report out what
you have discussed
15 minutes to discuss; 10 minutes to report out
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Thank You
Office of Business Continuity Planning
Department of Risk Management, Safety & Security
Shawn Kiley, MPA
[email protected]
www.bcp.uncc.edu
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