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TRANSCRIPT
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Risk ManagementUnderstanding the Impact of Risk Management in your School
MASBOWinter Conference 2019
Presenters:
Tom StrasburgerVP of Strategic Alliances
Jim Westrum, SFO, CSRMExec. Director of Finance & Business
Amy Diedrich, CEBS, CSRMPublic Sector Specialist
Stephen AndersonBusiness Manager
The Risk Management Process
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The Risk Management
Process
Identification
Analysis
Control
Financing
Administration
s c i c . c o m
The Impact
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School Board
School Board
School Board
School Board
School Board
Human Resources
Instructional & Academic
Administration & StaffCustodial & Maintenance
Food Service
Transportation
Students & Community
Emerging Risks
• Drone Liability
• Builders Risk
• International/Travel and accident
• TULIP –Building lease or use by others
• Opioids
• Cyber/Network Security
Separate limits or sub limits
Emerging Risks
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Drones in Schools
• Sporting Event replays:
• Stadium videos
• Race watchers
• Photo finishes
•Watching kids at bus stops
• Tracking on the way to school
• Drones are getting smaller, easier to
use and more cost effective; they
can go anywhere!
Drones in Schools
Cool Drones Uses
Drone Car insurance claims - Bing video
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• Confirm whether the district owns any drones or not
• How do you protect data?
• Have coverage for drones the district does not own but maybe flown over your property
• Will students be participating in education competitions off campus?
• How do you notify students and parents of UAS rules?
Things to Consider
Only UAS owned & controlled by the school
Non-Owned &/or Non-Controlled UAS
Banned
NO DRONE ZONE
ü Accessü Trackingü Hold Harmlessü Compliance
ü Requirementsü Who’s Whoü Time frameü Proof of coverage
ü Communicateü Enforceü Protect
Set Policy Direction
• Travel for educational purpose
• Trip/travel usually covers cancellation
• Ransom & kidnapping
• Repatriation
• Excluded by Standard Workers’ Compensation
International Travel
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• Have policy ready before ground breaking
• Copper theft, vandalism, water damage to existing buildings
due to construction
• Better to have your own than rely on construction company
Builders Risk
• Other parties renting/leasing school space
• Fundraisers
• Class reunions
• Verification of insurance
• Some State laws provide relief or further
protection
• Don’t leave your district open to a large claim
TULIPTenants Users Liability Protection
Key Insights SecurityScorecard analyzed 2393 companies with a footprint of 100 IP addresses or more in the education industry, from April 2018 to October 2018. We found the following: • The Education Industry was the lowest performer in terms
of cybersecurity compared to all other major industries. • The Education Industry performed poorly in patching
cadence, application security, and network security. • There are several regulatory requirements for
cybersecurity performance to improve in the education industry.
2018 Education Cybersecurity Report2018 Education Cybersecurity Report | SecurityScorecard
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Cyber risk is fast emerging as
one of the most critical
operational and financial
risks for all organizations
today as recent ransomware
attacks have shown.
• Breach of Student and Employee
Private Data
• Business Interruption
• Reputational damage
• Data or software damage
• Liability to third parties resulting
from a system breach
Cyber Security/Data Breach
• The Family Education Rights and Privacy Act (FERPA) (20 U.S.C. § 1232g; 34 CFR Part 99)
• The Protection of Pupil Rights Amendment (PPRA) (20 U.S.C. §1232h; 34 CFR Part 98)
• The Children’s Online Privacy Protection Act (COPPA) (15 U.S.C. § 6501–6505)
• The Children’s Internet Protection Act (CIPA) (47 U.S.C. § 254) • General Data Protection Regulation (GDPR) (Regulation (EU)
2016/679)
Privacy Regulations
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Cost of Data Breach
Ponemon Institute Research Report
“Cyber Security: A Critical District Priority” Even after recent high-profile incidents, cybersecurity can seem abstract and non-urgent, but of course, cybersecurity is a necessity in education.1. Liability2. Legal requirements
3. Professional reputation
4. Teaching and learning
5. Student digital records
Written by Stacey PuseyDec 10, 2018 | EDSCOOP
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• https://youtu.be/rjVzQfKVm3Q
• https://youtu.be/tpRySYis14c
• https://youtu.be/U4gtGeDoJRw
• https://youtu.be/_7HZHkrwNHQ
News Reports & How To
• Tort caps limits1.5M
• Help to determine event or breach
• Forensics, legal and PR assistance
• Bitcoin Restoration
• What is excluded
• Prevention assistance
Key Components of Good Coverage
The Total Cost of Risk -TCOR
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WC Claims Frequency vs. Severity
WC Claims Staff injured while working with
special needs population(by School Year)
Slip, Trip & Fall WC Claims(by School Year)
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Work Comp Injury Cause Frequency – Lifting or Moving
(by School Year)
Work Comp-Injury Type/Cause5 School Years
Property & General Liability
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Property & General LiabilitySchool Year 2011-2012 2012-2013 2013-2014 2014-2015 (1st Half)
Total Number of Crashes 42 (3) 53 (8) 64 (6) 28 (4)
42
53
63
28
0
1 0
2 0
3 0
4 0
5 0
6 0
7 0
8 0
9 0
2 01 1-2 01 2 2 01 2-2 01 3 2 01 3-2 01 4 2 01 4-2 01 5(1 st Ha l f)
School Year
Crash Totals per School Year
• Assists in making effective risk management decisions
• Enables measurement of progress toward risk
management objectives
• Provides management and employee incentives
Uses of TCOR Calculations
• Assists with effective management of financial budgets
• Promote safety and loss control by communicating the
financial impact of a loss on the cost of risk
Benefits TCOR Calculations
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• Effective administration of a risk management program
• Public relations, public relations, public
relations!
• Meet and greet throughout the district!
• Well developed, easily navigated website
is essential for risk management
Resources and Strategies
• Includes in-house legal counsel and academics
• Usual duties of accident reviews, statistics, loss run reviews etc.
• Recommending body to the superintendent’s cabinet and
school board for district policy revision, new programs, changes
in procedures
Resources and Strategies
Loss control committees from every facet of the school district
The Action Plan
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§ Simply checking boxes that we did stuff
OR
§ Truly improving safety (not just saying it
but executing it)
WHAT ARE WE TRYING TO ACCOMPLISH?
§ Prevention
§ Preparedness
§ Response
§ Recovery
P, P, R, R
§ Training with a purpose
§ Practicing and preparing to act
§ Reporting and action
§ Communication is important
§ How it is communicated is KEY!!
Prevention & Preparedness
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§ Social & Emotional
§ Bullying
§ Safety
§ Slip, Trips, Falls
§ Compliance
§ Bloodborne Pathogens
§ Policies / Procedures
§ Timing
§ Throughout the year
§ Communication
§ Help people understand the WHY!
Prevention – Training with a Purpose
§ Types
§ Building Safety Assessments
§ Drills
§ Phishing emails
§ Safety inspections
§ When
§ Throughout the year
§ Why all this????
Preparedness – Practice
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§ Reporting Systems for different events
§ Crisis, behavior, cyber, etc.
§ Some may overlap
§ Reporting Systems for different stakeholders
§ Telephone, online, paper, tell someone
§ Event Timing
§ Pre, during, post
Prevention – Reporting
Amy Diedrich, CEBS, [email protected]
Steve [email protected]