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  • Risk Management & InsuranceMarch 25, 2015

  • Risk Management & Insurance Discussion TopicsSection 1. Risk

    Section 2. Risk Management

    Section 3. Insurance

    Section 4. Contracts

  • Section 1.1 Risk What is Risk?Risk is:

    the potential for an act or activity, or the failure to act, to result in loss.

    the element of uncertainty present in all planning that can impact the capacity of an organization to achieve its goals.

  • Section 1.2 RiskWhat are Some Risks UCSB Faces?Lab safetyDeferred maintenanceActive shooterStudent travelBluff erosionNCAA complianceOutreach involving minorsInformation technology infrastructureContracts & Grants complianceFaculty recruitment & retention

  • Section 1.3 RiskUC Offices Deal w/Institutional Risks OP General Counsel Litigation management, legal adviceOP Risk Services Insurance, litigation, claims, contractsRisk Management Office Insurance, litigation, claims, contractsContracts & Procurement Office contracts, purchase ordersBusiness Officers UC policies, internal controls, SAS 112 (auditing stds.)Internal Audit Annual Risk AssessmentCompliance & Ethics Committee - Compliance w/laws, policiesStudent Affairs - Student Behavioral Health TeamAthletics NCAA compliance Environmental Health & Safety Assess safety and hazards Information Security- HIPAA, IS-3 Design and Construction Seismic safety, construction code compliance Office of Research - Compliance with grant regulations and laws

  • Section 2.1 Risk Management What is Risk Management?Risk management is a process.

    The objective of the risk management process is to protect an organizations financial, physical, and human assets from loss or destruction.

  • Section 2.2 Risk Management The Risk Management Process

  • Section 2.3 Risk Management Risk AnalysisRisk frequency and severity are the two parameters that risk managers use to determine how to appropriately respond to risk.

    High severity risks must be avoided if possible or transferred if not. There- after extensively managed so as to reduce the risk of catastrophic loss.

    Low severity risks can be dealt with by implementing loss control measures and then retained as the cost of doing business.

  • Section 2.4 Risk ManagementDifferent Ways to Handle RiskRisk Avoidance - get rid of the risk if you can by not engaging in the activity that causes it.

    Loss Control - implement measures that reduce the possibility that a loss will occur.

    Risk Retention - assume financial responsibility for the risk as a cost of doing business because it is small and does not pose a significant risk to the organization

    Risk Transfer transfer the financial responsibility that the risk represents to another party

  • Section 2.5 Risk Management Risk Transfer

    Risk Transfer:

    InsuranceIndemnificationWaiver of Liability

  • Section 2.6 Risk ManagementUC Waiver of LiabilityA Waiver of Liability

    Is a risk transfer tool

    Protect the University from legal liability for injuries sustained by individuals participating in voluntary activities.

    Required for activities that create physical risk to participants, e.g. sports activities, off-campus travel, field trips, boat charters, etc.

  • Section 2.7 Risk ManagementAll Employees are Risk ManagersWhen you drive a car in the course of business.When your supervisor asks you to hire a caterer for a department event.When you are implement a training program.When you are responsible for a contract with a consultant.When you must plan a field trip.When you charter a boat for a department event.When you work in a lab.When you work with power tools.When you travel or arrange someone elses travel.When you organize youth outreach activities.

  • Section 3.1 Insurance UC Self-Insurance ProgramsThe University of California has been self-insured since 1986. Self-insurance is a form of retained risk. It established the following in-house self-financed insurance programs:

    Workers Compensation Auto Liability General Liability Professional Liability Employment Practices Liability Hospital & Medical Professional Liability Property Insurance

  • Section 3.2 Insurance UC Commercial Insurance PoliciesUC does not self-insure all its exposures. It transfers the risk of some exposures by purchasing commercial policies.

  • Section 3.3 InsuranceStandard UC Insurance Requirements

    GENERAL LIABILITY (contractual liability included) with minimum limits:a) Each Occurrence $1,000,000b) Products/Completed Operations Aggregate $2,000,000 c) Personal and Advertising Injury $1,000,000d) General Aggregate $2,000,000


    WORKERS COMPENSATION As reqd by State law


    ADDITIONAL INSURED: both the General Liability and Automobile Liability policies shall be endorsed to include The Regents of the University of California as additional insured.

  • Section 3.4 InsuranceThe Certificate of InsuranceA Certificate of Insurance provides evidence that an individual or organization carries certain types and limits of insurance.

    It is required by UC contracts to prove that campus providers have met contract insurance requirements.

  • Section 3.5 InsuranceWaiver of UC Insurance RequirementsUC insurance requirements can be waived if the exposure to liability is negligible.

    However when a Waiver is approved there is no risk transfer which creates increased liability for the University.

    Waivers are approved on the condition that the department requesting the waiver assume financial responsibility for any losses that arise out of the contract.

  • Insurance for Business Partners and Affiliated Organizations:

    Contractor/Vendor Insurance ProgramRegistered Student Organizations Event Liability PolicyFoundations, Alumni, and Support Groups PoliciesTenant Users Liability Insurance Protection (TULIP) Recognized Club Sports Camps and Clinics Event Liability PolicyRenters Insurance


    Section 3.6 Insurance CampusConnexions Insurance

  • Section 3.7 InsuranceTravel Accident InsuranceThe Universitys Travel Accident Insurance Program: for employees and students who are traveling out-of-state on UC business or participating in UC-sponsored activities. The benefits are provided at no cost and include:

    Out-of-Country Medical ExpensesEmergency Medical EvacuationRepatriation of RemainsSecurity ExtractionTravel AssistancePersonal Property and Lost LuggageTrips Interruption and Cancellation

    iJet/WorldcueTRAVELER: When University travelers register for travel accident coverage they will receive travel alerts about the country they are traveling in. The system also allows the University to keep track of and communicate with its employees and students in the event of an emergency.

  • Section 4.1 Contracts Contracts & Risk ManagementA contract is a legally enforceable agreement between two (or more) parties to perform specified act(s) in exchange for lawful consideration.

  • Section 4.2 Contracts Types of Contracts Facility Use Permits

    Professional Services Agreements


    Research Access Permits

    Performance Agreements

    Academic Agreements

    Instructional Agreements

    Purchase Orders

    Leases, Rentals

  • Section 4.3 ContractsIndemnificationThe indemnification provision in a contract is a form of risk transfer. It specifies who shall be financially responsible in the event of a loss.

    The University uses the indemnity provision to require its business partners to take responsibility for their own liability:

    Regents Standing Order 100.4(dd)(9) prohibits campuses from entering into agreements that require the University to take responsibility for the acts or omissions of individuals who are not University employees.

  • Risk Management & InsuranceContactsMari Tyrrell-Simpson, Acting Risk ManagerTel. 8934169; Email: mari.tyrrell-simpson@workcomp.ucsb.eduLee Mudrick, Risk Management Administrator Tel. 8932860; Email: lee.mudrick@ehs.ucsb.eduRon Betancourt, Risk Management AnalystTel. 8935837; Email: ron.betancourt@ehs.ucsb.edu

    Kimberly Tapia, Contracts ManagerTel. 893-5836; Email: kimberly.tapia@contracts.ucsb.eduDaniel Sweeney, Contracts AnalystTel. 893-2271; Email: daniel.sweeney@contracts.ucsb.edu

  • Risk Management & InsuranceQuestions?



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