Risk

1
Risk??

• Every employee a risk manager!!

2
Is risk good or bad?

• Is the goal elimination of all risk?
• Do we insure all risk?
• Or do we manage risk?

3
Risk return and BYU-I

• We take risks at BYU-I with the intent of getting
  something back that justifies the risk.
• Investment in the new auditorium and MC addition
  is taking a risk
• Opportunities for gathering and shared
  spiritual/learning experiences
• More interaction teaching among students
• Hoping the millions will provide an appropriate
  benefit

4
Risk Management

• Process of measuring or assessing risk and then
  developing strategies for managing risk.
• Transferring risk
• Avoiding risk
• Reducing negative effects of risk
• And accepting some risks with the inherent
  consequences
• Deal with highest loss and/or probability first

5
Informal Risk Management

• Most of the risk management is informal
• The process is the same
• Often done on the fly
• Rightfully we rejects some risky activities
• In some cases risk is accepted unwisely
• In others a moderate risk is accepted due to the
  potential benefits

6
Intangible Risk

• Deficit knowledge Not knowing what is going on
  in departments
• Relationship risk reduces effectiveness
• Operation ineffectiveness
• Reputation risk
• Violations of law
• Anything that reduces institutional ability to
  achieve its mission

7
Hiring

• Each time a new employee is hired, the
  institution is taking a risk with the
  expectation that the employee will add value to
  the mission of the university knowing some might
  not

8
Examples Risk Management

• Each time a grounds keeper insists that a student
  employee wear ear plugs and protective eye wear
• Each time and employee locks his office or
  computer
• When an account steward reviews financial
  activity reports
• When employees learn and adhere to travel policy

9
Faculty

• Each time a faculty member uses a new teaching
  method risk is being taken with the expectation
  that the learning experience will be enhanced.
  But there is some potential for a decline in the
  learning experience or other negative fallout.

10
Okay, so what?

• Dont take risks that do not provide a
  commensurate return.
• Dont take risks where the loss potential is too
  high.
• Dont take unnecessary risks.
• Dont take risks you are not authorized to take.

11
Words can haunt us and embarrass the university
and church

• Be thoughtful about what you say particularly in
  a public/classroom setting.
• If you would not want it quoted in the scroll or
  national news, it might be best left unsaid.

12
Be observant

• If you note a physical hazard on campus, call the
  safety office and voice a concern train others
  to do the same.
• If students or employees are involved in
  something that includes unwarranted danger
  (physical, property, reputation) speak-up,

13
Faculty

• Experiential learning is a good thing but
• Make sure the value justifies the risk/cost
• If a walk gets the job done then forget the
  bungee jumping
• If travel adds little value then dont travel
• Assess the risks and rewards associated with each
  activity or program

14
Things to Remember

• There are only two or three people on this campus
  who are authorized to acknowledge university
  liability.
• Never say the university will cover that.
• Never say I am sure the university has insurance
  for that injury or other issue.
• Direct potential claimants to the Safety Office
  or to Financial Services

15
Manage Risk

• As you fulfill your responsibilities be risk
  aware.
• Measure and assess
• Transfer risk if prudent - insurance
• Avoid uncompensated risk
• Reduce/mitigate risk where possible
• Know and comply with University policy

16
You are a risk manager!Teach those you work
with that they too are risk managers.
Remember