Risk??
Every employee a risk manager!!
Is risk good or bad?
• Is the goal elimination of all risk?
• Do we insure all risk?
• Or do we manage risk?
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
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
Informal Risk Management
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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
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
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
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
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.
Okay, so what?
• Don’t take risks that do not provide a
commensurate return.
• Don’t take risks where the loss potential is
too high.
• Don’t take unnecessary risks.
• Don’t take risks you are not authorized to
take.
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.
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,
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 don’t travel
– Assess the risks and rewards associated with
each activity or program
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
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
Remember
You are a risk manager!
Teach those you work with that
they too are risk managers.