strima annual conference, lexington, ky why can’t state risk managers and university risk...
TRANSCRIPT
STRIMA Annual Conference, Lexington, KY
Why Can’t State Risk Managers and University Risk Manager’s Be Friends?
Louis Drapeau, University of KentuckyScott Jordan, State of AlaskaJen Coney, State of Oregon
Jean Demchak, Education & Public Entity Leader, MarshSeptember 21, 2011
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Discussion Outline
Current program for each panelist
Association Statistics
State Government vs. Higher Education– Risk Profiles– Coverages– Services
Future Considerations
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“State of the Union”
State of Oregon
University of Kentucky
State of Alaska
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“The World According to GARP”
STRIMA– 45 States participate in RM Survey– Higher education as “clientele”
10 states DO NOT include 35 states DO include
University Risk Management Insurance Association (URMIA)– 4,500 Institutions in U.S.– 500 Risk Managers
Peer benchmarking challenging
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Risk Profile: State Government Programs
The protection of sovereign immunity and the birth of the doctrine dates back to the 13th century in the Kingdom of Britain, when the courts decided the King could do no wrong.
Absence of capitalism with State governments. – Not driven by same “risk of loss” for settlement in private industry,
governmental entities do not suffer from the same pressures in this regard. State government: budgets are set they are not profit-making entities they can rely on tax dollars they are not subject to punitive damages
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Public vs. Private – Sovereign Immunity
In most states, government entities such as public colleges and universities, and cities and counties, are protected by sovereign immunity – which works together with general liability policies.
Sovereign immunity can cover mistakes and accidents as long as they were not done with willful negligence or malice. Pursuant to this protection, the public entity may have caps on the amount to which they can be held liable, or immune from suits.
STRIMA– 4 states with total immunity– 35 states with limited/partial immunity– 4 states with no immunity
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Risk Profile: State Government Programs
Agency Operations– Employee base (unions)– Aviation– Transportation– Prison– Department of Public Works– Children and Family Services– Power / Energy / Sewer– Hospitals– State Police – Marine
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Risk Profile: State Government Programs Cont.
Higher Education– Main University – Community Colleges– State University / Regional
K-12 municipal or regional oversight– Charter Schools– For profit
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Risk Profile: Higher Education
Academic environment with open culture
STUDENTS!!!
Publics compete with Privates, For Profits and Non-US institutions
Employee base (staff, faculty, grad students)
Operations include:– Residence Halls – Food Service– Transportation– Campus Security– Aviation– Administration– Athletics
UK: 4H State-wide Program; Agricultural Extension Service
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Risk Profile: Higher Education continued
Academic Medical Centers Patient Safety Medical Training UK Level I Trauma Center
Research– Sponsored programs– Funding contingencies– Clinical trials
Human subject safety Alignment with peers
International Programs– K&R– Terrorism– WC
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Coverages: State vs. Higher Education
Casualty– General and Automobile Liability
Workers Compensation
Property
Public Officials vs. Educators Legal Liability
Aviation
Marine
Higher education specific:– Out of state operations– Fine arts, – Foreign programs (K&R, SOS, Crisis Mgt., WC, DBA)– Contractual liability – Athletics– Student: Health care and professional liability
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Services: State Vs. Higher Education
Claims administration
Information services
Legal defense
Risk control
Appraisals– Property
Fine Arts– Public vs. private appraisers / inspectors
Other
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Emerging Areas for Consideration
Total Cost of Risk Model– State Government– Higher Education
URMIA TCOR I Whitepaper 2008 URMIA TCOR II Advanced Whitepaper 2011
- Dynamic worksheets
Enterprise Risk Management– State Government– Higher Education
URMIA ERM Whitepaper 2007
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Speaker Contact Information
Jen Coney, ManagerRisk ManagementState of Oregon
State Services DivisionDepartment of Administrative Services
503 373 [email protected]
Scott Jordan, Director, Division of Risk Management
State of Alaska907 465 5723
Louis J. DrapeauDirector of Risk Management
University of Kentucky859.257.6214
Jean Demchak, Managing DirectorGlobal Education & Public Entity Leader
Marsh, Inc.860 938 0175