UNCW
Institutional Risk Management
Tier I Response Planning
Spring 2013
Presentation Overview
 Response Plan Process
 Tier 1 High Risk Response Plans
 Response Plan Summary
University of North Carolina Wilmington
Presentation Overview
Tier 1 Response Plans
 High Risk
 Continuity of Operations
 Human Capital
Management
 Regulatory Intervention
 Volatility of Essential
Resources
 Campus Health & Safety
 Med High Risk
 Research Support
 Risk Management Integration
 Diverse Revenues*
 Participant Programs
 Infrastructure
*Diverse Revenues has been consolidated
Today’s Presentation
 Continuity of Operations
 Human Capital
Management
 Regulatory Intervention
 Volatility of Essential
Resources
 Campus Health & Safety
 Research Support
with Essential Resources
University of North Carolina Wilmington
High Risk Level Summary
Risk Area
1. Volatility of Essential Resources
2. Regulatory Intervention
3. Human Capital Management
4. Campus Health and Safety
5. Continuity of Operations
6. Research Support?
Impact
Serious
Serious
Serious
Severe
Severe
Serious
Likelihood
Almost Certain
Almost Certain
Likely
Possible
Possible
Likely
University of North Carolina Wilmington
Response Plan Process
 Assigned Leads. Workgroups comprised of SME’s
 One key risk. Example: Loss of Specialized Facilities
 Use Risk Statement and KRI guidance
 Describe Mitigations In Place or Initiated
 Develop Next Steps to reduce residual risk
 Senior Leaders offered feedback on Response Plans
 Implement Action Steps and Continuous Measurement
University of North Carolina Wilmington
Continuity of Operations
Challenges Related To
Post-Disaster Financial and Space Management
Key Risk: Loss of Specialized Facilities
Continuity of Operations
 Objective:
Provide state of the art research and instructional facilities that attract world class
faculty, staff and students to UNCW and provide for the continuation of these services
in the face of emergency situations and events.
 Risk Statement:
Loss of specialized research and instructional space in Dobo Hall could occur from a
myriad of natural, man-made or intentional events – resulting in potentially enormous
reputational and financial losses, faculty flight and loss of research relating to our core
teaching and research missions.
 Indicator(s):
The post-disaster vulnerability of specialized research and instructional space as
measured by related utilization and financial impacts and
degree to which replacement space is available, the number of related class seats per
year, the square footage of specialized space, research dollars per building and
specialized building contents value.
University of North Carolina Wilmington
Continuity of Operations
Supporting Data
 Utilization and Financial Impacts
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•
•
•
•
100 fume hoods and 3 biosafety cabinets
Limits of insurance versus value and risks (contents insured for $4.3 million)
Limited animal facilities
80% of Dobo space is specialized
17,800 Students potentially affected by loss of specialized space (AY12-13)
 Interruption of use of specialized instructional /research 2010-2012
•
•
•
2 power outages
0 days of campus evacuation
Several other significant infrastructure outages (sewer, water, IT, HVAC)
University of North Carolina Wilmington
Continuity of Operations
Mitigations
 Current
•
•
•
•
•
•
•
Inspections
Backup generators and data backup
Building maintenance – cooling tower, fume hoods, controls
Relationships with off campus partners and other universities
FEMA approved mitigation plan
Security layers (UPD, Locks, Door Access)
Safety and emergency response training and drills
 In Process
• Redundant chiller
• Connection to Regional Energy Plant
• COOP initiative for academic departments
University of North Carolina Wilmington
Continuity of Operations
Exit Strategy
 Proposed Next Steps
• Ensure the completion of laboratory or departmental specific COOP plans
• Integration of unit-specific plans into larger COOP plans, incorporating all stakeholder
input
• Aggressive preventative building and system maintenance
• Expand focus from research/instructional to all specialized facilities (e.g., hardened
facilities and facilities with high value contents)
 Expected Outcome(s)
• Having robust data-driven contingency priorities in place for specialized space before
an adverse event occurs can result in a smoother and lower cost recovery and a
reduction in lost awards, number of students directly affected, enrollment impact and
time to effect facility restoration.
University of North Carolina Wilmington
Human Capital Management
Challenges Related To
Human Capital and Talent Management
Key Risk: Inability to Deliver Effective and Efficient
Institutional Performance
Human Capital Management
 Objective:
Contribute to the institution’s success by attracting and retaining the high
quality talent required to ensure achievement of the university’s strategic goals
and meet operational needs.
 Risk Statement:
Effective and efficient institutional performance may be constrained by the
inability to consistently attract and engage a qualified and skilled workforce.
 Indicators:
Human capital-related vulnerability as measured by productivity, performance
ratings, employee satisfaction, turnover and retirement rates and recruitment
and retention of qualified employees
University of North Carolina Wilmington
Human Capital Management
 Key Mitigations
• Monitoring workforce trends to identify potential risks
• Employee Engagement Survey
• Enhanced New Employee “On-Boarding” program
• Reinstatement of competency-based supervisory training (professional
development position reinstated .8 FTE)
 Next Steps
• Improve and expand analysis of workforce trends, turnover causality and
potential impact.
• Further refine talent management strategy, including but not limited to
diversity, engagement, collaboration and efficiency.
University of North Carolina Wilmington
Regulatory Intervention
Compliance Challenges
In an Inherently Decentralized Environment
Key Risk: Non-Compliance due to Regulation Proliferation
Regulatory Intervention
 Objective:
Mitigating regulatory compliance risk in an inherently decentralized environment
 Risk Statement:
Deficiencies in compliance-related institution-wide coordination, standards, support or
accountability could lead to adverse findings or verdicts and severe reputational and/or
financial liability.
 Indicator:
The degree to which there exists a proliferation of federal and state regulations with an
increased interest in oversight and enforcement (i.e., export controls, research
regulation, ADA, Department of Education, NCAA)
University of North Carolina Wilmington
Regulatory Intervention

Key Mitigations:
• Periodic internal and external audits
• Online training to augment current compliance training in this resource
challenged environment

Next Steps:
•
•
•
•
Fund and hire a compliance coordinator
Finalize campus coordinated compliance policy
Finalize compliance calendar/matrix and web portal
Inventory of compliance programs and FTE’s with a majority of job
responsibilities including compliance
• Quarterly summits with designated responsible program compliance officers
University of North Carolina Wilmington
Campus Health and Safety
Challenges Related To
An Open Campus Environment
Key Risk: Clery Act Non-Compliance
Campus Health and Safety
 Objective:
To maintain compliance with the Jeanne Clery Disclosure of Campus Security Policy and
Campus Crime Statistics Act (Clery act) and associated regulations
 Risk Statement:
Clery Act noncompliance could occur due to the diffuse nature of required elements and the
concentration of compliance responsibility in one area – resulting in potential fines,
unmitigated risk to safety and negative impact to the institution’s reputation
 Indicators:
Institutional vulnerability of non-compliance and associated financial and reputational losses
as measured by court rulings, DOE enforcement trends, UNCW program diversification trends
(or growth in areas with potential to have associated reportable events), the concentration of
current compliance efforts and the degree to which reporting responsibilities are formalized
University of North Carolina Wilmington
Campus Health and Safety
Clery Act Noncompliance : Exit Strategy
 Key Mitigations:
•
•
•
•
•
Communication tools (UNCW Alert, Conference Bridge, CDT, University/Dept.
Policies)
Safety/security training in New Employee Orientation
2009 Campus Crime Reporting Review conducted by UNCW Internal Audit
Self-audit of crime stats YTD 2013
Staff Resources
o Student Affairs Case Manager (2009)
o University Police Crime Analyst
 Next Steps:
•
•
•
Determine appropriate ownership for Clery compliance (such as a Clery Compliance
Committee related to IRM or the Chancellor’s Council on Safety and Security)
Funding source and training objectives for functional training exercises
Identify in-roads for enhancing awareness of resources and ownership among
faculty and staff
University of North Carolina Wilmington
Volatility of Essential Resources
Challenges Related To
Slow Economic Recovery
Key Risk: Changing Resources to Support Institution
Mission and Goals
Volatility of Essential Resources
 Objective:
Ensuring that adequate resources are available for financial support of the
institution’s mission and goals
 Risk Statement:
Further budget reductions and reallocation of resources could occur due to
declining appropriations and the inability to offset the cost by increasing student
tuition and fees – potentially resulting in an inability to ensure the availability of
adequate resources to support the institution’s mission and goals.
 Indicator(s):
Vulnerability of resource availability as measured by budget and appropriations
trends
University of North Carolina Wilmington
Volatility of Essential Resources
 Key Mitigations:
•
•
•
•
Monitoring GA and Legislative Discussions
Modeling impact of Federal Sequestration
Supporting innovation in the creation of new revenue sources
Enhanced management processes and business analytics tools
o Enrollment Goal Setting to support resource needs generation
o Cost Allocation Model to inform decisions on resource allocation and reallocation
o Initiated development of Early Warning Business Analytics tools
 Next Steps:
• Evolving business analytics and predictive modeling
• Implement Unified Budget Model proposal
• Complete sensitivity analysis on grant awards and the associated impact on
indirect cost pool
University of North Carolina Wilmington
Research Support
Ensuring Adequate Support for Institutional Research
Key Risk: Research Compliance Failures
Research Support
 Objective:
Compliance with federal, state, university and sponsor requirements
 Risk Statement:
Compliance failures can result from investigator and/or institutional negligence or
misconduct resulting in eligibility restrictions for sponsors, repayment, fines and
disruption of research activity and programs
 Indicator(s):
Audit findings, inspection reports, adverse events, allegations of
scientific/research misconduct
University of North Carolina Wilmington
Research Support
 Key Mitigations:
• Consolidated research compliance programs under single umbrella (Office of
Research Services)
• Increased use of videoconference training programs
• Monthly “problem solving and compliance” sessions with ORS and other unit
heads
 Next Steps:
• Increased use of RAMSeS to reduce compliance risk (implementation of human
subjects research, animal research, and financial conflict of interest modules)
• Increase outreach and training programs
• Further analysis and treatment of: fluctuating availability of and mix of research
opportunities, funding model variability and viability, and intellectual property
management. Re-evaluate risk level.
University of North Carolina Wilmington
Response Plan Summary
Risk Area
1. Volatility of Essential Resources
2. Regulatory Intervention
3. Human Capital Management
4. Campus Health and Safety
5. Continuity of Operations
6. Research Support?
Impact
Serious
Serious
Serious
Severe
Severe
Serious
Likelihood
Almost Certain
Almost Certain
Likely
Possible
Possible
Likely
Mitigations
1. Evolve business analytics and modeling of key funding
streams
2. Better coordinate regulatory compliance with possible
compliance coordinator hire
3. Further analyze trends and further refine talent
management strategies
4. Ensure Clery Compliance with improved coordination of
emergency notification requirements and exercises
5. Assess plans and insurance for all specialized facilities
and integrate unit plans with institutional plans
6. Further utilize technology to ensure research compliance;
in addition, analyze funding availability and intellectual
property management; subsequently, re-evaluate risk level
University of North Carolina Wilmington