University Executive Directive #01-22 – Risk Management Policy

Purpose: 

The campus president has delegated responsibility for the implementation of Executive Order 715, the CSU Risk Management Policy (dated Wednesday, October 27, 1999), to the Vice President for Business and Finance. The Vice President for Business and Finance established the Office of Enterprise Risk Management to develop and implement programs, policies, and procedures in support of Executive Order 715.

Statement: 

This policy applies to all areas and members of the campus community and provides for consultation and coordination of risk management practices with the campus auxiliary organizations: Associated Students, Inc., San Francisco State Student Center, Inc., Franciscan Shops, Inc., and the San Francisco State University Foundation, Inc.

Procedures:

The Office of Enterprise Risk Management is responsible for administering programs covered by the California State University Risk Management Authority (CSURMA) risk pool, including:

• Liability Program
• Workers' Compensation Program
• Industrial Disability Insurance
• Non-industrial Disability Insurance
• Unemployment Insurance
• Special Events Insurance
• Property Insurance
• State Vehicle Insurance
• Student Travel Accident Insurance 

The Procurement Office will handle insurance requirements in contracts in accordance with the guidelines of the CSURMA Insurance Requirements in Contracts, prepared by Driver Insurance Services in August 1998. The Executive Director of Risk Management and/or University Counsel will review exceptions to the Driver requirements and perform risk analysis as necessary. The Office of Environmental Health, and Emergency Operations, which is part of the Office of Enterprise Risk Management, is responsible for health and safety matters and related training. 

Risk Management Policy Implementation

Policies and procedures will be developed to anticipate and assess losses, and to mitigate such losses through appropriate risk management techniques. The Office of Enterprise Risk Management will implement practices developed by the CSURMA and make appropriate decisions to control losses while supporting the goals of the University. The following steps will be taken in the risk management process: 

• Identify loss exposures
  • Define types of exposures: property, liability, personnel, income, and goodwill
  • Define campus-relevant criteria for significant risks
  • Identify risks unique to San Francisco State University
• Evaluate the seriousness of risk exposures
  • Determine the probability of risk occurrence
  • Estimate severity and frequency
  • Factor in the University's objectives
• Examine the feasibility of managing risk through alternative techniques
  • Control risk through prevention, segregation, transfer, and avoidance
  • Finance the risk through deductibles and other means
  • Transfer the risk through insurance or contracts
• Select and implement the best techniques
  • Perform cost/benefit analysis
• Monitor, evaluate, and improve the program
  • Ensure proper implementation
  • Utilize productive qualitative and quantitative measurements
• Report results
  • Collect and report relevant data
  • Prepare an annual risk management report for the campus president 

Risk Management Consultation Process

The Executive Director of Risk Management shall develop ongoing communication with decision-making administrators from among such departments as Human Resources, Environmental Health and Safety, Public Safety, Plant Operations, Student Affairs, Disability Resources, Continuing Education, International Program, Academic Affairs, Fiscal Affairs, and University Counsel. The Executive Director may convene an ad hoc committee or task force from time to time to ensure full performance of risk management functions by those having specific program responsibilities. 

Risk Management Training 

The Office of Enterprise Risk Management will provide training to individuals and departments on topics related to health, safety, and risk management. 

Auxiliary Oversight 

The Office of Enterprise Risk Management will require that each auxiliary organization provide the University with current certificates of insurance in the amounts specified in their operating agreements. The Office of Enterprise Risk Management will work with auxiliary managers to ensure that the university is not held liable for losses incurred by auxiliaries or on grounds leased to auxiliaries. 

Annual Report 

The Executive Director of Safety and Risk Management will provide an annual report to the office of the president. The report shall include a review of the current year’s activity, costs, trends, and initiatives.

Policy Review 

This policy shall be subject to review and revision at the time the annual report is submitted to the campus president.

[Archived Approved University Executive Order for reference: University Executive Directive #01-22 – Risk Management Policy]