Risk Management Policy

In accordance with Executive Order #715, it is the policy of CSU Sacramento to provide policies, procedures, and practices designed to minimize the adverse effects of losses arising from injury to persons or damage to property. The University and its administrators and employees are responsible for conducting programs and activities in a manner that does not impose an unreasonable risk of loss or injury.

RESPONSIBILITY

The campus president has delegated responsibility for implementation of Executive Order 715, the CSU Risk Management Policy (10/27/99), to the Vice President for Administration. The Vice President for Administration directed the establishment of a Risk Management Office to develop and implement programs, policies, and procedures in support of Executive Order 715.

PROGRAM ELEMENTS

The Risk Manager has responsibility for administration of the risk management program, including but not limited to the following:

1. Liability Program
2. Property Insurance
3. State Vehicle Insurance
4. Student Travel Accident Insurance
5. Special Events Insurance

Human Resources has responsibility for workers' compensation and disability leaves:

1. Workers' Compensation Program
2. Industrial Disability Insurance
3. Non-industrial Disability Insurance
4. Unemployment Insurance

Additionally, Procurement and Contract Services is responsible for insurance requirements in contracts, in accordance with the Chancellor's Office Executive Order 849, California State University Insurance Requirements. The Risk Manager and/or University Counsel will review exceptions to the Executive Order requirements, and perform risk analysis as necessary. Environmental Health & Safety has responsibility for health and safety matters and related training.

THE RISK MANAGEMENT PROCESS

Pursuant to Chancellors' Executive Order 715, the risk management process for controlling risks and mitigating losses shall include the following steps:

1. Identification of risks and areas of loss exposures
1. Defining campus-relevant criteria for significant risks.
2. Define types of exposures: property, liability, personnel, and goodwill
3. Itemization of significant risks including risks that are unique to our campus
2. Evaluate risk exposures.
1. Probability analysis of risk occurrence, including severity and frequency.
2. Quantitative analysis of each risk exposure
3. Rank risks in priority order of their potential impact.
3. Select the best risk management technique.
1. Identify range of alternative techniques for each specified liability/risk.
Control risk through prevention, segregation, transfer, and avoidance
2. Transfer of risk by contract or insurance
3. Finance the risk through deductibles and other means
2. Cost/benefit analysis
4. Implement the appropriate risk management technique.
1. Specify roles and responsibilities
2. Establish goals and implementation methodology
3. Provide specific measures for accountability
5. Monitor, Evaluate, and Improve the Program
6. Measure against specific goals -qualitative and quantitative measurements
7. Report Results
8. Collect and report relevant data
9. Prepare annual report to the campus President

ANNUAL REPORT AND POLICY REVIEW

The Risk Manager will provide to the President of the University a Risk Management Annual Report. The report's minimum elements shall include a review of current year's activities, issues, loss costs, trends, and major initiatives. The Risk Management Policy shall be subject to review and revision at the time the annual report is submitted to the President.

RISK MANAGEMENT CONSULTATION PROCESS

The Risk Manager shall develop on-going communication with decision-making administrators, from among such departments as Human Resources, Environmental Health and Safety, Public Safety, Facilities Management, Student Affairs, Academic Affairs, Office of Global Education, and University Counsel.

TRAINING AND PROFESSIONAL DEVELOPMENT

Risk Management will have two key components of its Training and Professional Development Program:

• In coordination with the Campus' Training Manager, provide training for campus personnel and management on Risk Management related topics.
   
• Risk Management personnel shall participate in appropriate professional development conferences and workshops, and maintain their certifications and licenses in a current condition

AUXILIARY OVERSIGHT

Risk Management will require that each auxiliary organization provide the University with current certificates of insurance in the amounts specified in their operating agreements. Additionally, Risk Management will work with auxiliary managers to ensure that the University is not held liable for losses incurred by auxiliaries.

/ALEXANDER GONZALEZ, PRESIDENT
March 24, 2004