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1
UR
MIA
Co
nfe
ren
ce 2
01
2:
“P
rovid
en
ce
20
12
-Gu
idin
g y
ou
Ac
ross
the O
ce
an
of R
isk”
1. C
ove
r Slid
e (In
tro b
y T
im P
alm
er)
Good M
orn
ing a
nd w
elc
om
e to
“Aho
y M
ate
y-T
ake th
e T
iller a
nd M
ain
tain
Due C
ours
e th
rough E
xposure
Ide
ntific
atio
n”. I
am
Tim
Palm
er . . . . . . . L
et m
e in
troduce
yo
u to
the p
resente
rs fo
r this
sessio
n.
Ed
wa
rd F
rackie
wic
z:
Ed
Fra
ckie
wic
z is
the
Le
ad
er o
f the
Bo
sto
n C
on
so
rtium
Ris
k M
an
ag
em
en
t Advis
ory
Gro
up
pro
vid
ing
inte
gra
ted
Ris
k
Ma
na
gem
en
t se
rvic
es
to
Bra
nde
is
Un
ive
rsity
, B
en
tley
Colle
ge
, B
erk
lee
C
olle
ge
o
f M
usic
, B
rya
nt
Un
ive
rsity
, E
me
rso
n C
olle
ge
, Fra
nklin
W. O
lin C
olle
ge o
f Eng
ine
erin
g, L
aS
elle
Co
llege
, Salv
e R
egin
a U
niv
ers
ity, W
elle
sle
y
Colle
ge
, Whea
ton
Colle
ge a
nd
Worc
este
r Poly
tech
nic
Institu
te.
Prio
r to jo
inin
g th
e C
onso
rtium
team
, Ed
wa
s th
e D
irecto
r, Ris
k M
an
ag
em
en
t for A
llme
rica
Fin
an
cia
l Co
rpo
ratio
n a
nd
the
D
el
Mon
te
Foo
ds
Co
mp
an
y.
In
bo
th
role
s,
he
w
as
the
p
rima
ry
indiv
idu
al
resp
on
sib
le
for
co
rpo
rate
ris
k
man
agem
en
t aw
are
ne
ss a
nd
the
execu
tion
of fin
ancia
l trea
tme
nts
de
sig
ne
d to
pro
tect c
om
pan
y a
sse
ts. In
ad
ditio
n,
he
ha
d g
lob
al a
ccou
nta
bilitie
s fo
r the
stra
teg
y a
nd
se
lectio
n o
f pro
pe
rty &
ca
su
alty
insu
ran
ce
pro
gra
ms, s
ecu
rity a
nd
sa
fety
se
rvic
e p
rovid
ers
an
d c
orp
ora
te fle
et v
eh
icle
man
agem
en
t. E
d w
as a
lea
din
g m
em
be
r of th
e ris
k m
ana
gem
en
t team
with
the L
ibe
rty M
utu
al In
su
rance
Gro
up
. Du
ring
his
twe
nty
-ye
ar
ca
ree
r a
t L
ibe
rty,
he
h
eld
n
um
ero
us p
ositio
ns in
clu
din
g cla
ims a
dju
ste
r, tra
inin
g su
pe
rvis
or,
Ma
na
ge
r of
Co
nsum
er A
ffairs
& C
orp
ora
te In
su
ran
ce
an
d D
irecto
r of R
isk F
ina
ncin
g.
Ed
is
a g
rad
ua
te o
f Wake
F
ore
st
Univ
ers
ity w
ith a
B
S in
B
usin
ess a
nd h
as ea
rne
d his
A
RM
desig
na
tion
. H
e
cu
rren
tly se
rve
s th
e ro
le a
s an
in
de
pen
den
t D
irecto
r a
nd P
resid
en
t E
me
ritus of
the
N
ew
E
ng
lan
d E
du
ca
tors
In
su
ran
ce
Asso
cia
tion
Boa
rd (N
EE
IA) a
nd
a m
em
be
r of th
eir R
isk M
ana
gem
en
t an
d S
trate
gic
Pla
nn
ing
Com
mitte
es.
He
has p
resen
ted
at p
rog
ram
s h
oste
d b
y U
RM
IA, R
IMS
, the
So
cie
ty o
f Con
sum
er A
ffairs
in B
usin
ess (S
OC
AP
), In
su
ran
ce
Con
sum
er A
ffairs
Exch
an
ge
(ICA
E), In
tern
atio
na
l Qua
lity &
Pro
du
ctiv
ity C
en
ter (IQ
PC
) an
d th
e A
llian
ce
of
Am
eric
an
Insu
rers
(AA
I). He
als
o s
erv
ed
as a
mem
be
r of th
e B
oa
rd o
f Dire
cto
rs o
f the
Trip
le S
Insu
ran
ce
Ag
en
cy,
Inc. a
nd
on
a N
atio
nal F
oo
d P
roce
sso
rs A
sso
cia
tion
(NF
PA
) Insu
ran
ce
Task F
orc
e.
Willia
m A
ustin
: B
ill Au
stin
is a
prin
cip
al o
f Austin
& S
tan
ovic
h R
isk M
an
age
rs L
LC
, a n
atio
na
l risk m
an
agem
en
t co
nsultin
g firm
, with
o
ffice
s in
MA
and
RI. H
e s
pe
cia
lize
s in
all a
sp
ects
of ris
k m
an
ag
em
en
t. His
hig
he
r edu
ca
tion
pra
ctic
e in
clu
des
man
y w
ell-k
no
wn
co
lleges a
nd
un
ive
rsitie
s lo
ca
ted
th
roug
h th
e N
orth
ea
st
US
su
ch
as B
osto
n C
olle
ge
, B
rya
nt
Univ
ers
ity, J
oh
nson
& W
ale
s U
niv
ers
ity, M
aris
t Colle
ge
, Pro
vid
en
ce
Co
lleg
e, R
hod
e Is
lan
d S
ch
ool o
f De
sig
n, T
rinity
C
olle
ge
. He
is a
reso
urc
e to
Un
ive
rsity
of R
ho
de
Isla
nd
, Rho
de
Isla
nd
Colle
ge
an
d C
om
mu
nity
Colle
ge
of R
hod
e
Isla
nd
. His
con
sultin
g p
ractic
e in
clu
des o
rgan
iza
tion
s fro
m F
ortu
ne
10
0 c
om
pa
nie
s to
larg
e re
gio
na
l co
rpo
ratio
ns to
g
ove
rnm
en
tal
en
tities.
H
e als
o h
as an
activ
e litig
atio
n sup
po
rt p
ractic
e th
at
inclu
de
s e
xp
erie
nce
as a
n e
xp
ert
witn
ess in
bo
th d
isclo
se
d a
nd
no
n-d
isclo
se
d e
ng
age
me
nts
. Som
e o
f his
expe
rt witn
ess e
ng
agem
en
ts h
ave
inclu
ded
hig
he
r ed
uca
tion
risk a
nd
insu
rance
issu
es.
His
risk a
nd
insu
ran
ce
care
er b
ega
n in
19
77
an
d e
vo
lve
d to
inclu
de
su
cce
ssfu
l em
plo
ym
en
ts in
und
erw
riting
with
W
ausa
u In
su
ran
ce
Com
pa
nie
s, n
atio
nal b
roke
rag
e w
ith R
ollin
s H
ud
ig H
all n
ow
Ao
n, in
dep
end
en
t consu
lting
with
A
lbe
rt Ris
k a
nd
7+
ye
ars
as a
VP
/Co
rpo
rate
Ris
k m
an
age
r for F
lee
tBo
sto
n a
Fo
rtune
100
co
rpo
ratio
n, 7
th la
rge
st
US
ba
nk w
ith o
pe
ratio
ns in
21 c
ou
ntrie
s a
nd m
ore
tha
n 5
0,0
00
em
plo
ye
es. H
e c
o-fo
un
de
d A
ustin
& S
tan
ovic
h R
isk
Ma
na
ge
rs w
ith C
raig
Sta
no
vic
h in
20
02
as a
n in
de
pe
nd
en
t risk m
an
agem
en
t an
d in
su
rance
co
nsu
lting
firm. B
ill is a
re
gu
lato
r co
ntrib
uto
r to In
tern
atio
na
l Ris
k M
an
agem
en
t Institu
te. H
e is
a g
rad
ua
te o
f Univ
ers
ity o
f Wis
con
sin
-Ea
u
Cla
ire w
ith a
BB
A in
ma
rke
ting
with
an
em
pha
sis
in fin
an
ce
and
ha
s a
CR
IS d
esig
na
tion
from
IRM
I. B
ill is a
freq
uen
t sp
eake
r on
risk m
an
agem
en
t an
d in
su
rance
topic
s. In
the
pa
st y
ea
r he
wa
s a
pa
nelis
t for a
NY
C
RIM
S p
an
el d
iscu
ssio
n o
n R
MS
risk m
ode
ling
; a p
an
elis
t at F
ord
ham
La
w S
ch
ool in
NY
C o
n “H
um
an
Rig
hts
–
Em
erg
ing
Ris
ks fo
r Co
rpora
te C
oun
sel a
nd
dis
cu
sse
d o
pe
ratio
na
l risk is
su
es fo
r non
-pro
fits fo
r the
RI C
PA
So
cie
ty.
Ed
a
nd B
ill h
ave
kn
ow
n e
ach
o
the
r fo
r 1
0 ye
ars
a
s b
oth
a
re a
ctiv
e in
th
e G
rea
ter
Bo
sto
n R
isk M
an
agem
en
t C
om
mu
nity
for 1
0 y
ea
rs. T
he
y to
ld m
e it is
a p
lea
sure
to p
rese
nt th
is s
essio
n to
ge
the
r toda
y.
2 2
. Ou
r Ex
pe
cta
tion
s S
lide
Ed
Fra
ckie
wic
z a
nd
I are
ve
ry h
ap
py to
se
e a
ll of y
ou a
t our s
essio
n.
Ou
r go
al to
da
y is
sim
ple
: Thro
ug
h a
n e
xch
an
ge
of id
ea
s w
e h
op
e a
ll of u
s w
ill beco
me
mo
re e
ffectiv
e ris
k
ma
nag
ers
thro
ug
h e
nh
an
ced
aw
are
ne
ss to
the im
po
rtan
ce o
f exp
os
ure
iden
tificatio
n.
I rem
em
ber th
e re
cru
iting
bro
ch
ure
used
by W
ausa
u In
sura
nce
Co
mp
an
ies in
197
7, w
hen
I go
t out o
f co
lleg
e.
It sa
id s
om
eth
ing
like
FIR
E, E
XP
LO
SIO
N, L
OS
S o
f LIF
E, D
ISA
ST
ER
-how
ca
n a
ca
ree
r in in
sura
nce
be b
orin
g
wh
en
yo
u w
ork
with
these
typ
es o
f eve
nts
. All e
xp
osu
res to
loss b
ut s
imp
ly w
ord
s, n
ot d
ime
nsio
na
l in a
ny w
ay
for o
ne
that w
ould
ultim
ate
ly b
eco
me
a F
ortu
ne
10
0 ris
k m
anag
er.
Yo
u c
an
no
t ma
nag
e o
r un
ders
tan
d o
r treat w
ha
t yo
u d
o n
ot k
no
w!!! Y
ou
nee
d to
ma
nag
e a
360
de
gre
e
of e
xp
os
ure
-cau
se
/effe
ct a
nd
effe
ct o
n a
giv
en
ass
et (b
uild
ing
, data
, hu
ma
n c
ap
ital) a
nd
wh
at th
es
e
sam
e a
ss
ets
ca
n d
o to
cre
ate
exp
os
ure
to o
the
r ass
ets
(neig
hb
orin
g b
uild
ing
, theft o
f data
, inju
ry to
h
um
an
ca
pita
l an
d in
jury
to o
ther p
eo
ple
an
d o
rgan
izatio
ns). E
xp
osu
re re
vie
w is
3 d
ime
nsio
na
l-it is
no
t that w
hic
h m
ay b
e o
bvio
us
. T
he P
ow
erP
oin
t that y
ou
ma
y h
ave
do
wn
load
ed
from
UR
MIA
is a
wo
rkin
g d
raft w
e c
reate
d a
t the b
eg
innin
g o
f th
e s
um
me
r. We d
ecid
ed
this
se
ssio
n m
ay a
llow
gre
at id
ea
s, s
torie
s a
nd s
o o
n fro
m th
is g
rou
p.
Th
e o
ne
used
for to
da
y is
our fin
al d
raft. W
e h
ope
to e
licit id
ea
s fro
m th
e g
roup
toda
y th
at w
e c
an u
se to
u
pd
ate
this
final d
raft in
to a
final v
ers
ion
that in
clu
de
s a
ll poin
ts fro
m th
is s
essio
n. In
oth
er w
ord
s th
is w
ill be
kin
d o
f a liv
ing
docu
men
t to ta
ke
our id
ea
s a
nd
poin
ts a
nd
brin
g in
the c
om
me
nts
from
those o
f yo
u th
at d
ecid
e
to s
hare
thoug
hts
, idea
s a
nd
sto
ries w
ith u
s. S
ucce
ss s
torie
s a
nd fa
ilure
sto
ries. W
e le
arn
from
he
arin
g fro
m
one a
no
ther w
hat w
ork
s a
nd
wh
at d
oe
s n
ot.
Ed
is s
erv
ing
as s
crib
e to
da
y. H
e lo
st th
e c
oin
toss a
s to
wh
o w
ould
sp
ea
k a
nd
wh
o w
ou
ld b
e s
crib
e. T
hen
ag
ain
ma
yb
e h
e w
on! H
e lik
e m
e w
as a
lso
a ris
k m
anag
er a
nd
has d
eve
lope
d a
risk m
anag
em
ent to
ol s
et th
at
inclu
de
s id
eas o
n e
xp
osu
re id
en
tificatio
n.
We w
ill take
idea
s fro
m th
is s
essio
n a
nd
upd
ate
the P
ow
erP
oin
t as b
est w
e c
an a
nd
have
it co
nve
rted to
PD
F.
It will lik
ely
be p
oste
d b
y U
RM
IA a
nd
will b
e a
t my w
ebsite
Octo
ber 1
5, 2
01
2 w
ww
.austin
sta
no
vic
h.c
om
. Ed
will
yo
u b
e p
ostin
g it to
Th
e B
osto
n C
onsortiu
m w
ebsite
as w
ell?
Do
wn
load
it/sh
are
it as y
ou d
ee
m a
pp
rop
riate
. If y
ou ra
ther h
ave
it em
aile
d to
yo
u w
hen
read
y s
imp
ly le
ave
yo
ur e
ma
il add
ress w
ith u
s o
n th
is s
ign-u
p s
heet
and
we
will e
ma
il it to y
ou
wh
en
it is re
ad
y fo
r rele
ase
. Ple
ase
prin
t yo
ur e
ma
il add
ress c
learly
for u
s to
read.
3. S
lide: T
he R
isk
Man
ag
em
en
t Pro
ce
ss
Is
a te
mp
late
app
roa
ch
rea
lly u
se
d?
Is it u
sefu
l? Y
es to
bo
th q
uestio
ns. If y
ou
r initia
l rea
ctio
n is
no
the
n y
ou
ma
y n
eed
to re
-thin
k y
ou
r pra
ctic
e o
f risk m
an
agem
ent. T
he
ste
ps a
re s
imp
le. T
he
ste
ps
ke
ep
us o
n p
oin
t as to
exp
osu
re id
en
tificatio
n firs
t an
d tre
atm
en
t op
tion
s s
eco
nd.
1
. Id
en
tify a
nd
an
aly
ze
ex
po
su
re to
loss.
2.
Eva
lua
te fe
asib
le a
ltern
ativ
e ris
k m
ana
ge
men
t tech
niq
ue
s to
ha
nd
le lo
ss e
xp
osu
res.
3.
Se
lect th
e m
ost a
pp
rop
riate
/effic
ien
t risk m
an
age
me
nt te
chn
iqu
es to
han
dle
loss e
xp
osu
res.
4.
Imp
lem
en
t the c
ho
se
n te
ch
niq
ue
s.
5.
Mo
nito
ring
the
resu
lts, re
vis
e a
s re
qu
ired
and
sta
rt ove
r ag
ain
with
ex
po
su
re id
en
tificatio
n.
What is
inte
restin
g th
ese
5 s
tep
s a
re u
se
d in
ma
ny ty
pe
s o
f risk m
an
age
me
nt p
roce
sse
s. I h
ave
se
en
sim
ilar s
tep
s fo
r e-d
ata
risk m
an
agem
en
t and
in IS
O 9
00
1 d
ocum
en
ts th
at d
iscuss ris
k m
an
agem
ent
as a
dis
cip
line
an
d a
ma
na
gem
ent p
ractic
e.
3 4
. Ins
ert F
lee
t Bu
sin
es
s P
lan
ne
xt S
lide
an
d d
isc
uss
WK
A R
isk
Ma
nag
em
en
t Slid
e
I imp
lem
en
ted
a b
usin
ess p
lan
ap
pro
ach
to ris
k m
ana
ge
men
t that w
as in
itially
a o
ne y
ear p
lan
an
d
the
n a
s th
e o
rga
niz
atio
n b
ecam
e m
ore
com
ple
x I e
xp
an
de
d it u
ltima
tely
to 3
ye
ars
as s
om
e o
f ou
r in
itiativ
es c
ou
ld o
r wo
uld
take
mu
ch
lon
ge
r tha
n 1
2 o
r eve
n 2
4 m
on
ths to
de
sig
n a
nd
imp
lem
en
t. It le
d o
ff with
Exp
osu
re ID
-the
n R
isk C
on
trol-th
en
Ris
k F
ina
ncin
g a
nd th
en
Adm
in E
fficie
ncie
s-s
elf is
sue
of in
su
ran
ce
ce
rts-tra
ditio
na
l insu
ran
ce
as w
ell a
s c
aptiv
e.
Pla
n th
e w
ork
-Wo
rk th
e P
lan
E
d a
nd
I firmly
be
lieve
the
2 m
ost im
po
rtan
t ste
ps in
the
Ris
k M
ana
ge
men
t pro
ce
ss a
re th
e firs
t and
las
t-eve
ryth
ing
be
gin
s
with
e
xp
osu
re
ide
ntific
atio
n
and
sta
rts
ove
r a
ga
in
with
e
xp
osu
re
ide
ntific
atio
n. O
rga
niz
atio
ns e
vo
lve
as w
ill exp
osu
re to
loss-in
su
rab
le o
r no
t-1st p
arty
or 3
rd pa
rty.
A ris
k m
an
ag
em
en
t pro
gra
m th
at d
oes
no
t evo
lve
co
nsis
ten
t with
ex
po
su
res
to lo
ss
is lik
ely
a
n in
effe
ctiv
e ris
k m
an
ag
em
en
t p
rog
ram
fo
r th
e o
rgan
iza
tion
. T
ec
hn
iqu
es
lik
e In
su
ran
ce
pu
rch
as
e o
r imp
lem
en
tatio
n o
f a c
ap
tive
ins
ure
r are
no
t risk m
an
ag
em
en
t pro
gra
ms
. Ea
ch
m
ay b
e c
ritica
l co
mp
on
en
t of th
e o
ve
rall ris
k m
an
ag
em
en
t pro
gra
m b
ut a
re n
ot s
ub
stitu
tes
for
the
risk
ma
nag
em
en
t pro
gra
m in
tota
l. 5
. Wh
at D
o W
e m
ea
n b
y E
xp
osu
re
Exp
osu
res to
loss-in
sura
ble
or n
ot-c
ontin
ue
to e
vo
lve
and
ou
r skill s
et m
ust e
vo
lve
as w
ell in
ord
er to
se
rve
our
org
aniz
atio
ns a
s e
ffectiv
e ris
k m
anag
ers
. E
xp
osu
re d
efin
ed
from
IRM
I: “Th
e s
tate
of b
ein
g s
ub
ject to
loss b
eca
use
of s
om
e h
aza
rd o
r co
ntin
ge
ncy”.
6. W
hat d
o w
e m
ea
n “
Ris
k” a
nd
“L
os
s”
Ho
w to
defin
e “ris
k”: IR
MI: a
term
of m
any m
eanin
gs. T
wo
of th
e p
rincip
al m
ean
ing
s a
re 1
. Un
certa
inty
and
2.
A s
ubje
ct o
f insura
nce (e
.g., a
hou
se) (s
om
etim
es a
lso
refe
rred to
as a
n e
xp
osu
re u
nit o
r unit o
f exp
osu
re)
Ris
k d
efin
ed
? IR
MI: S
om
etim
es th
e p
roba
bility
of a
n e
ve
nt. L
et’s
just s
ay th
e p
ossib
ility o
f loss. L
et’s
not
pre
tend
to b
e a
n a
ctu
ary
. It ca
n e
ither h
ap
pe
n o
r it ca
nn
ot h
ap
pe
n. It is
or it is
not. M
ust lo
ok a
t eac
h s
ing
le
exp
os
ure
a
s to
th
e p
oss
ibility
o
f a
n e
ve
nt.
A
SS
UM
E s
om
eth
ing
c
an
o
r c
an
no
t h
ap
pen
a
fter
yo
u
inq
uire
. DO
NO
T S
IMP
LY
AS
SU
ME
IT C
AN
NO
T H
AP
PE
N H
ER
E.
“lo
ss
”: IR
MI: th
e b
asis
of a
cla
im fo
r dam
ag
es u
nd
er th
e te
rms o
f a (in
sura
nce
) polic
y.
Be
tter: re
du
ctio
n in
the v
alu
e o
f an a
sset d
ue to
pe
ril or d
am
ag
es fo
r neg
lige
nt u
se o
f the a
sset.
We
ha
ve
5 s
en
ses
: Sig
ht, S
peec
h, S
me
ll, So
un
d a
nd
Tas
te. L
et’s
co
ns
ide
r ou
r 5 s
en
se
s a
s a
m
ea
ns to
ide
ntify
ex
po
su
re.
7. K
ey P
oin
ts o
f Ris
k M
an
ag
em
en
t
8. S
lide: C
ras
h-B
oo
m-B
an
g
Did
yo
u h
ea
r so
und
s o
r exp
osu
res?
What a
re s
om
e e
xp
osu
res th
at c
om
e to
min
d?
Airp
lan
e c
rash
(dam
age
to b
uild
ing, d
ea
th o
f pa
ssen
ge
rs), (in
terru
ptio
n o
f freig
ht tra
nsit)
Scre
am
s-a
ssa
ult-m
uggin
g (la
ck o
f safe
ty)
Gu
n s
ho
ts (la
ck o
f safe
ty, d
am
age
to b
uild
ings, ro
bbe
ry o
f mon
ey/s
ecu
rities)
4 A
mbu
lan
ce
-on
ca
mp
us o
r off (in
jurie
s o
n c
am
pu
s-in
jurie
s c
au
se
d b
y d
rive
r of c
olle
ge
am
bu
lan
ce
) T
raffic
co
nge
stio
n (p
rob
lem
or s
om
e e
ve
nt o
n c
am
pu
s)
Do
g g
row
ling (la
ck o
f safe
ty a
nd
bre
ach
of c
om
mo
n la
w)
Fire
Ala
rm (d
an
ge
r on
ca
mpu
s, d
an
ge
r from
ne
ar c
am
pu
s, fa
ulty
ala
rm, d
am
age
to b
uild
ing, in
jury
to
pe
rso
n p
ullin
g a
larm
) N
ot a
ll exp
osu
res a
re o
bvio
us.
WK
A
pro
pe
rty
un
de
rwrite
r e
ure
ka
: P
rope
rty
we
se
e
the
a
sse
t a
nd
ca
n
vis
ua
lize
th
e
exp
osu
re.
Ca
su
alty
ma
y n
ot b
e o
bvio
us. M
an
in w
ind
ow
sittin
g a
t de
sk m
ay c
rea
te m
ore
exp
osu
re to
loss th
an
the
bu
ildin
g h
e w
ork
s in
. 9
-10
-11. W
ha
t do
yo
u s
ee
?
12
. Ex
po
su
re Id
en
tifica
tion
Usin
g 5
Se
ns
es
PL
US
1
Sile
nce
do
es n
ot m
ean a
ll is a
t pe
ace
What e
xp
osu
re d
id y
ou s
ee
an
d h
ea
r?
E
mp
loye
e liftin
g h
ea
vy o
bje
ct n
ot p
ayin
g a
tten
tion
to p
rop
er liftin
g m
eth
od
s
B
roke
r curb
in a
he
avy fo
ot tra
ffic a
rea
S
milin
g s
tude
nt ju
st a
cce
pte
d in
to fo
reig
n s
tud
y p
rogra
m in
Ch
ina
W
ithd
raw
n s
tud
en
t dw
ellin
g o
n b
ad
test s
co
re
W
ithd
raw
n s
tud
en
t dw
ellin
g o
n s
exu
al a
ssa
ult
P
are
nt ta
lkin
g to
atto
rne
y a
bo
ut s
exu
al a
ssau
lt of th
eir c
hild
N
ew
sp
ap
er re
po
rter g
ath
erin
g fa
cts
on
ca
mp
us s
exu
al a
ssa
ults
L
ega
l dep
artm
ent c
reatin
g a
ne
w e
ntity
to a
ct a
s s
traw
to p
urc
ha
se
pro
pe
rty n
ea
r cam
pu
s
S
tude
nt d
rive
r with
sp
ee
din
g tic
kets
ge
tting in
to c
olle
ge
va
n to
tran
spo
rt fello
w a
thle
tes
A
dju
nct in
stru
cto
r den
ied
a p
erm
ane
nt p
ositio
n
O
lde
r facu
lty m
em
be
r tha
t ha
s y
et to
rece
ive
ten
ure
B
oa
rd m
em
be
rs v
otin
g to
exp
an
d n
ew
bu
ildin
g w
hile
facin
g fin
an
cia
l ch
alle
nge
s
G
ay s
tud
en
t vid
eo
go
ing v
iral o
n Y
ou
Tube
S
tude
nt h
acke
r ob
tain
ing s
tud
en
t pe
rsona
l info
rma
tion
from
ca
mp
us c
om
pu
ters
F
acu
lty m
em
be
r en
terin
g in
to re
sea
rch g
ran
t for s
om
e ty
pe
of b
io/m
ed
de
vic
e
• B
ein
g a
risk m
anag
er is
not th
e s
am
e a
s b
ein
g ris
k a
dve
rse
. Be
ing c
onscio
us o
f exp
osu
re s
imp
ly m
ean
s
bein
g a
wa
re o
f situ
atio
ns th
at m
ay b
e a
dve
rse
to y
our in
stitu
tion a
nd
if don
e tim
ely
giv
ing
the in
stitu
tion
time
to im
ple
me
nt a
pp
rop
riate
risk m
anag
em
ent te
chn
iqu
es. W
e n
ee
d to
imp
lem
en
t techn
iqu
es c
on
sis
tent
with
the n
ee
ds o
f our in
stitu
tion b
ut c
onsis
tent w
ith o
ur o
wn
feels
of ris
k. T
hin
k in
term
s o
f risk/re
wa
rd a
nd
h
ow
to m
inim
ize
the ris
k a
nd
still re
ap th
e re
wa
rd
• T
he p
ractic
e o
f risk m
an
ag
em
ent is
both
Art a
nd S
cie
nce
. It takes o
ur 5
se
nse
s P
LU
S a
6th s
en
se o
f E
XP
OS
UR
E A
WA
RE
NE
SS
wh
ich
I thin
k is
a c
om
bin
atio
n o
f EX
PE
RIE
NC
E, C
OM
MO
N S
EN
SE
an
d
BU
SIE
NS
S S
EN
SE
to p
erfo
rm th
e a
rt aspe
ct o
f risk m
anag
em
ent. D
eve
lop
ing
a 6
th s
ense
with
in ris
k
ma
nag
em
ent is
ke
y to
first c
reatin
g a
nd
se
con
d m
ain
tain
ing
a ris
k m
anag
em
ent p
rog
ram
that is
effe
ctiv
e
for y
our in
stitu
tion a
nd
one
that s
hou
ld e
vo
lve
with
yo
ur in
stitu
tion
. So
me
wa
ys to
deve
lop a
nd
ma
inta
in
yo
ur 6
th se
nse
.
5 •
We b
elie
ve
ris
k m
anag
em
ent
is b
est
perfo
rmed
a
s a
te
am
sp
ort.
It
take
s a
villa
ge
. Y
OU
a
s ris
k
ma
nag
em
ent n
ee
d te
nta
cle
s in
to th
e o
rga
niz
atio
n. T
alk
to y
our c
olle
ag
ues a
s a
risk m
anag
er n
ot ju
st o
nce
a y
ear to
ga
ther in
sura
nce
rene
wa
l info
rmatio
n.
• W
e b
elie
ve
risk m
anag
em
ent c
ann
ot b
e e
ffectiv
ely
pra
ctic
ed a
s “s
ilo” o
r in a
“so
lo”. L
ea
rn to
iden
tify a
ny
exp
osu
re o
r risk to
yo
ur in
stitu
tion a
nd s
hare
with
those th
at m
ay b
e in
po
sitio
n to
bette
r dea
l with
it than
yo
u. J
ust b
eca
use
yo
u a
re n
ot in
IT o
r HR
doe
s n
ot m
ean
yo
u s
hou
ld a
ssu
me
those
folk
s a
re u
p to
date
w
ith e
xp
osu
res th
at m
ay c
ripple
yo
ur in
stitu
tion fin
ancia
lly o
r by re
puta
tion
. •
Th
e tra
nsitio
n fro
m o
pera
tion
al ris
k m
anag
em
ent to
ente
rpris
e ris
k m
anag
em
ent is
easy. R
isk is
Ris
k.
•
Th
e 8
0/2
0 A
dag
e: 8
0%
of e
xp
osu
re fa
ce
d b
y a
ny o
rga
niz
atio
n is
sa
me
or s
imila
r to th
at fa
ce
d b
y o
the
r org
aniz
atio
ns in
oth
er in
du
strie
s. T
he tru
e d
iffere
nce
in e
xp
osu
re b
y in
du
stry
ma
y b
e 2
0%
. Th
ere
is m
ore
in
co
mm
on a
s to
loss e
xp
osu
res to
all in
du
strie
s th
en
that w
hic
h is
unco
mm
on: B
uild
ing
s b
urn
, pe
op
le g
et
inju
red
beca
use
of o
pera
tions, p
eo
ple
su
e w
hen
inju
red. E
mp
loye
es s
ue w
hen
term
inate
d, e
tc.
Co
lleg
e a
nd
Un
ive
rsity
ca
mp
use
s a
re lik
e c
ities w
ith m
ore
go
ing
on a
t any o
ne
mo
me
nt th
an
stric
tly e
du
catio
n.
Ca
mp
us s
ecurity
-polic
e; re
sta
ura
nt/fo
od
pre
p a
nd
deliv
ery
, gro
un
ds m
ain
ten
ance
; hea
lth c
are
de
live
ry-o
nsite
clin
ic, h
osp
itals
, me
nta
l he
alth
co
un
selin
g e
ve
n E
MT
am
bu
lance
s; b
roa
dca
stin
g-T
V, ra
dio
, prin
t, we
b;
13. S
lide M
om
en
t of T
ruth
We a
ll talk
ab
out ris
k m
ana
ge
me
nt. In
one
se
nte
nce
to y
ou
rself o
r to a
ll of u
s
• D
escrib
e y
ou
r risk m
ana
ge
men
t pro
gra
m. (E
d w
ill act a
s o
ur s
crib
e).
• S
ingle
stre
ngth
of y
ou
r risk m
ana
ge
me
nt p
rogra
m.
• D
escrib
e h
ow
do
es y
ou
r Bo
ss d
escrib
es y
ou
r risk m
ana
ge
me
nt p
rogra
m.
• D
o y
ou
do
en
ou
gh
expo
su
re id
en
tificatio
n in
yo
ur jo
b?
•
Are
yo
u a
wa
ke
a
t n
igh
ts w
on
de
ring if
yo
ur
risk m
ana
ge
men
t p
rogra
m is
re
ason
ab
le fo
r yo
ur
co
llege
or u
niv
ers
ity.
• W
hat d
o y
ou k
now
abo
ut y
our b
usin
ess-th
e b
usin
ess o
f co
lleg
e a
nd u
niv
ers
ity o
pe
ratio
ns?
Wha
t are
so
me
of th
e e
xp
osu
res?
• D
escrib
e h
ow
yo
u m
ay a
pp
roa
ch
exp
osu
re id
en
tifica
tion
in y
ou
r risk m
an
age
me
nt p
rogra
m a
fter
yo
u re
turn
to h
om
e b
ase
afte
r this
co
nfe
ren
ce
. (Ed
will a
ct a
s o
ur s
crib
e).
• D
escrib
e h
ow
yo
u m
ay m
ove
from
a s
olo
and
silo
risk m
an
age
r to p
layin
g ris
k m
an
agem
en
t as a
te
am
spo
rt?
14
. Ex
po
su
re T
oo
l Bo
x S
lide
Le
t’s c
reate
an
exp
osure
too
lbo
x. (E
d a
s s
crib
e to
write
do
wn
idea
s)
WK
A/E
F id
ea
s to
be
sh
are
d a
s e
xp
osu
re id
en
tificatio
n to
ols
U
se
a b
usin
ess p
lan
ap
pro
ach
to
yo
ur a
nnu
al g
oa
ls a
nd
ob
jectiv
es m
ake
su
re th
at E
xp
osu
re
Ide
ntific
atio
n is
#1.
E
ntitie
s-S
tate
co
rpo
rate
d
ata
ba
se
. W
KA
clie
nt
(ne
w C
FO
) d
id n
ot
kn
ow
o
rga
niz
atio
n h
ad
2
ad
ditio
na
l entitie
s-fo
und
by lo
okin
g a
t fina
ncia
l rep
ort. O
the
r did
no
t kn
ow
of o
the
r entitie
s a
ctiv
e
an
d in
activ
e (ta
il exp
osu
re) b
ut fo
un
d w
he
n W
KA
revie
we
d c
orp
da
tab
ase
.
T
alk
to
in
-hou
se
e
xp
erts
w
he
n
ava
ilab
le-d
o
no
t ju
mp
to
in
sura
nce
m
echa
nis
m
sim
ply
b
y
co
nclu
din
g o
n y
ou
r ow
n w
e h
ave
an
exp
osu
re-
S
afe
ty ris
k c
om
mitte
es-c
olla
bo
rativ
e effo
rts to
kno
w w
ha
t’s g
oin
g o
n. G
et a
se
at
at th
e ta
ble
(F
lee
t Ope
ratio
na
l Assu
ran
ce
co
mm
ittee
) Le
ga
l sta
ff
6
Rea
d y
ou
r insu
ran
ce
po
licie
s (R
TP
), ob
vio
usly
to u
nd
ers
tan
d c
ove
rage
, bu
t equ
ally
impo
rtan
t to
un
de
rsta
nd
wh
at is
exclu
de
d, lim
ited
, restric
ted
an
d s
o o
n. T
he re
stric
tive
pa
rts o
f an in
su
ran
ce
po
licy p
oin
t ou
t exp
osure
s th
at m
ay 1
-ma
y h
ave
no
t be
en
ide
ntifie
d in
pa
st a
nd
2-th
at m
ay n
eed
to
be
de
alt w
ith w
he
the
r insu
rab
le o
r no
t.
W
alk
aro
und
F
ina
nce
sta
ff-ne
w in
itiativ
es
A
thle
tic-n
ew
initia
tive
s
R
ese
arc
h/g
ran
t ne
w in
itiativ
es (w
ho
will o
wn
pa
tien
ts, B
II issue
s, e
mb
ezzle
me
nt is
sue
s)
C
am
pu
s c
om
pu
ter n
etw
ork
an
d u
se
of c
lou
d (p
riva
cy, b
usin
ess c
on
tinu
ity)
S
tude
nt n
ew
sp
ape
r (libe
l-glo
ba
l issue
s if w
eb
ba
sed
and
effe
ct o
n re
pu
tatio
n)
C
ertific
ate
s o
f insu
rance
-wh
y is
yo
ur firm
be
ing a
ske
d to
pro
vid
e a
co
nfirm
atio
n o
f co
ve
rage
to
oth
er o
rga
niz
atio
n. C
ertific
ate
s o
f Insu
ran
ce
-wh
y is
the
oth
er e
ntity
pro
vid
ing a
co
py to
us?
Wha
t a
re th
ey d
oin
g fo
r yo
ur o
rga
niz
atio
n?
C
lery
R
ep
ort-(w
ha
t d
oe
s th
e in
fo m
ea
n in
te
rms of
rep
uta
tion
a
nd
p
ossib
le effe
ct
on
fu
ture
a
dm
issio
ns)
F
ire s
afe
ty re
po
rts/In
su
ran
ce
co
mp
an
y e
ngin
ee
ring
(do
yo
u g
et th
e s
am
e le
ve
l of in
form
atio
n o
n
yo
ur fo
reig
n c
am
pu
se
s)
R
em
em
be
r th
e ‘6
0’s
sa
yin
g “Q
ue
stio
n a
uth
ority
” w
he
n qu
estio
n in
su
ran
ce
ap
ps-w
ha
t d
o th
ey
me
an
? H
ow
are
qu
estio
ns a
nsw
ere
d?
Lo
ok c
lose
ly a
t Ye
s a
nd
No Q
&A
. Hosp
ital is
sue
re v
ide
o
tap
e-“a
re s
cop
e s
urg
ical p
roce
du
res ro
utin
ely
vid
eo
tape
d?
No. S
oun
ds b
ad. N
o w
e d
o n
ot. B
ut it
turn
ed o
ut th
at th
e h
osp
ital to
ok s
till pic
ture
s o
f the
pro
ced
ure
s. S
o e
xp
osu
re to
insu
rer w
as b
ette
r th
an
first th
ou
gh
t. Ove
rloo
ke
d b
y p
rior ris
k m
an
agem
ent s
taff a
s w
ell a
s c
on
su
lting firm
with
a +
20
ye
ar re
latio
nsh
ip.
Indu
stry
pe
riod
ica
ls: B
I, Ris
k a
nd
Insu
ran
ce
, RIM
S m
aga
zin
e
C
on
ce
rns o
f risk m
ana
ge
men
t pe
ers
in o
the
r ind
ustrie
s: b
an
kin
g, m
an
ufa
ctu
ring, tra
nspo
rtatio
n,
sto
rage
, etc
. The
80
/20
rule
of e
xp
osu
re.
C
rea
te
yo
ur
ow
n
un
iqu
e
risk
ma
na
ge
men
t te
mp
late
-RIM
S,
UR
MIA
, U
E,
AC
OR
D
Ap
ps,
hire
so
meo
ne
to a
ssis
t yo
u. U
se it a
s y
ou
wa
lk th
e c
am
pu
s, re
vie
w y
ou
r we
bsite
, take
it to m
eetin
gs,
dis
cuss is
sue
s a
t regio
na
l UE
, UR
MIA
mee
tings a
nd
so o
n.
L
oo
kin
g fo
r an
d u
nd
ers
tan
din
g e
xp
osu
re to
loss is
no
t the s
am
e a
s b
ein
g ris
k a
dve
rse.
Be
ing
co
gn
itive
of e
xp
osu
re to
loss in
su
rab
le o
r not a
llow
s y
ou
to e
va
luate
on
a ris
k/re
wa
rd b
asis
W
ha
t are
up
an
d c
om
ing
ca
mp
us e
xp
os
ure
s.
What c
an
we
as ris
k m
ana
ge
rs d
o to
lea
rn a
bo
ut th
ese
exp
osu
res, m
ake
su
re tre
atm
en
t is b
ein
g
co
nsid
ere
d w
he
the
r insu
rab
le o
r no?
Are
yo
u c
om
forta
ble
tha
t yo
u u
nd
ers
tan
d th
ese
exp
osu
res
L
oss o
f pe
rson
al in
form
atio
n-h
ard
co
py a
nd
e-fo
rmat
C
am
pu
s v
iole
nce
C
lou
d s
tora
ge
and
loss o
f da
ta a
nd
effe
ct o
n re
se
arc
h
S
tude
nts
ab
roa
d a
nd fo
reig
n h
ou
sin
g
S
tude
nts
and
facu
lty a
bro
ad
-Kid
nap
S
tude
nts
and
facu
lty a
bro
ad
-eva
c fro
m h
ot s
po
ts
A
ge
dis
crim
ina
tion
-em
plo
ye
es-fa
cu
lty a
nd o
the
rs
F
ailu
re to
info
rm s
tud
en
ts o
f poo
r job
pro
spe
cts
for c
erta
in m
ajo
rs
R
ese
arc
h a
nd
or g
ran
t activ
ities c
on
du
cte
d b
y fa
cu
lty-is
the
sch
oo
l vic
ario
usly
liab
le fo
r the
actio
ns
of th
e fa
cu
lty fo
r the
se
en
de
avo
rs
“Ahoy Matey-Take the Tiller and
Maintain Due Course through
Exposure Identification”
Edward Frackiewicz, ARM
Director Risk Management
The Boston Consortium for Higher Education, Olin College
edward.frackiewicz@olin.edu
William K. Austin, CRIS
Principal and Consultant
Austin & Stanovich Risk Managers LLC
wkaustin@austinstanovich.com
October 3, 2012
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
Our Expectations • Become better risk managers through exposure ID skills.
You cannot manage what you do not know!!!
• Class participation-Share stories-when things work and as
well as when things do not work.
• Discussion of risk management topics more important
than colorful PowerPoint Presentation.
• Updated PowerPoint: Add ideas from today!
URMIA?
www.austinstanovich.com by 10/15/12
Boston Consortium?
• .
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
1. Review and analyze Exposure to loss.
2. Evaluate alternative risk management
techniques.
3. Select the most appropriate/efficient
techniques
4. Implement the chosen techniques.
5. Monitoring the results, revise as required
and start over again with exposure
identification.
The Risk Management Process
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
Risk Management Process as a Daily Activity
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
So many definitions-so little time
Exposure defined from IRMI:
“The state of being subject to loss because of
some hazard or contingency”.
What Do We Mean by “Exposure”?
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
“Risk” from IRMI: “A term of many meanings.
Two of the principal meanings are 1. Uncertainty
and 2. a subject of insurance (e.g. building)
sometimes also referred to as an exposure unit or
unit of exposure.”
“Loss” from IRMI: “the basis of a claim for
damages under the terms of a (insurance) policy.”
Other Definitions/Ideas from the Group
What do we mean by “Risk” and “Loss”
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
The process starts with exposure identification and comes back
to exposure identification.
Continually check to determine what is new to organization-
growth, new endeavors, new trends in litigation, etc.
Risk management is a team sport: It takes more than a risk
manager to manage risk.
To manage risk one must first manage activities.
What do you do to manage risk through Exposure ID?
Key Points: Risk Management Process
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
Crash-Boom-Bang
Exposure Identification and the 5 Senses
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
Silence
Exposure Identification: 5 Senses PLUS 1
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
• In one sentence describe your risk
management program.
• What is a key strength of your program
• In one sentence how would your Boss
describe your risk management program.
• How do you rate your OVERALL risk
management program?
Moment of Truth
G u i d i n g Yo u Ac r o s s t h e O c e a n o f R i s k URMIA 2012 • Providence
Exposure Tool Box
Entities-for whom do you manage risk
Create networks
Join other’s monthly meeting
Certificates of Insurance
Walking Around
Insurance Applications
Create an exposure survey
External: Peer group, other industries (80/20 Rule)
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