Four
key risk management techniques
- Avoidance
Car Fleet may
not release vehicles for travel until the weather begins to clear, thus
avoiding the risk of auto accidents during severe weather. Some buildings on
campus have had repeated water problems in some areas – by not allowing storage
of supplies in those areas, some water damage claims may be avoided.
- Retention
The University
retains the risk of loss to fences, signs, parking meters, gates and light poles
because of the difficulty of enumerating and evaluating all of these types of
structures. When losses occur, the cost of repairs is absorbed by the campus
maintenance budget, except for those situations when we can collect from a
negligent third party.
- Loss Prevention and Reduction
The office
encourages the use of security devices on all computers, to reduce the risk of
theft. We require the purchase of health insurance by students who are studying
abroad, so that they might avoid the risk of financial difficulty, should they
incur medical expenses in another country.
- Transfer
When outside
organizations use University facilities for public events, we require that they
provide evidence of insurance and name the University as an additional insured
under their policy, thereby transferring the risk from the University to the
user. The purchase of insurance is also referred to as a risk transfer since
the policy actually shifts the financial risk of loss, contractually, from the
insured entity to the insurance company.
- Communication
Reporting issues
and concerns associated with unethical or illegal activities safely and
honestly with an organization will prevent and reduce the company risk.
