1. Betty Coulter, RMPE Director of Risk Management February 7, 2014

2. The process of making and implementing decisions that will minimize the adverse effects of accidental losses on an organization. 2

3. 3 Risk is bad – focus is on transferring risk Risk is an expense – focus is on reducing cost-of-risk Risk is uncertainty – focus is on optimizing risk to achieve goals Enterprise Risk Management A wide range of risks are discussed and reviewed, including reputational, human capital, strategic and operational Aligns RM process with strategy and mission May include “upside risks” (opportunities) Helps manage growth, allocate capital & resources Risks are owned by all & mitigated at the department level Many risk mitigation & analytical tools available Risk Manager is the risk facilitator and leader Transactional Approach Purchase insurance to cover risks Hazard-based risk identification and controls Compliance issues addressed separately Safety & emergency mgmt handled separately “Silo” approach – risk mgmt is not integrated across the organization Risk Manager is the insurance buyer A Broader Risk Mgmt Approach Greater use of alternative risk financing techniques More proactive about preventing and reducing risks Integrates claims mgmt, contracts review, special event RM, insurance and risk transfer techniques Cost allocation used for education and accountability More collaboration – as depts are willing Risk Manager may be the risk owner Transactional Strategic Integrated

4. 4 Risk Assessment – Current and future operations/ activities Provide Risk Management Consultation Claims Management Contract Review Policy Development Minors on Campus Defensive Driving/MVR Training RMSS Emergency Manual Minors on Campus Training Manual Van Certification Training

5. 5 UNCC Insurance Program Property, Auto, Workers Compensation, Contents Other – Foundation Programs Tort Liability and Defense of Employees Act Risk Financing Strategies Risk Transfer Contractual Insurance placement/purchase TULIP Retention Avoidance Record Management Insurance Costs Allocation

6. Thank You Risk Management & Insurance Department of Risk Management, Safety & Security Betty Coulter, RMPE bcoulte1@uncc.edu www.rmi.uncc.edu 6

7. Shawn Kiley, MPA Risk Management, Safety, & Security Office of Business Continuity Planning February 7, 2014

8. Continuity Planning Why do we (Institutions of Higher Education, IHE) need to worry about continuity? Impact to campus, downtime Business Continuity: Administrative Services, Research, Athletics, Auxiliary services, Housing, Parking Academic Continuity: Online Courses, Classroom/Lab Spacing 8

9. Why Do Continuity Planning? It’s good business practice Protects assets, cuts emergency costs, protects image Part of risk management process Prevent, protect, mitigate, prepare, respond, recover Identify trends and predict risks Promotes resiliency Ability of an organization to absorb the impact of a disaster, and continue to function at a minimum acceptable level Often the outcome of effective planning 9

10. Boston Marathon Bombing Boston on Lockdown 10 “City-wide shelter-in-place is advised. As this investigation unfolds, we are advising all city-wide to shelter-in-place. Please understand we have an armed and dangerous person(s) still at large and police are actively pursing every lead in this active emergency event….All MBTA service remains suspended at this time.” - April 19, 2013, 8:34 AM, ALERTBoston RadicalCartogrophy.net

11. NOAA Satellite Image, October 29, 2012.

12. Inclement Weather Snow storms (2010) in DC area, 7-day closure UNC Charlotte (2011) snow storm 3-day closure UNC Charlotte (2014) snow storm 2-day closure 12

13. Analogous to a Disaster If UNCC hosted DNC security and volunteers 1,500 beds proposed Impact to campus Operational: Academic Semester, Move-in, various activities Financial: Bookstore, Food Services, Housing, & Parking costs Cost $3 Million to recover losses Morrill, Jim. “UNCC Offers Dorms to DNC,” The Charlotte Observer (4/12/11) 13

14. What is Business Continuity? Continuity of Operations Plans (COOP) Business Impact Analysis (BIA) Risk Assessment (RA) Business Continuity Plan (BCP) It is not: Emergency Management (EM) Disaster Recovery (DR) 14

15. Disaster-Impact Timeline 15

16. Business Continuity Strategy Executive Level Buy-InUnit-Level COOPsDepartment-Level BIAs Department-Level Risk Assessment Test, Training and Exercise Program (TTE) Evaluation/Audit BC Strategy 16

17. Continuity of Operations Plans (COOP) Identify communications (including redundant methods) List and confirm alternate locations and facilities for conducting operations Response Plans (damage to vital records) How they are kept (paper vs. electronic) Where they are kept (open file vs. fireproof safe) How to recover if they are damaged Allow for succession and delegation of authority 17

18. Business Impact Analysis (BIA) Determine the effect of interrupted services on each unit Short and long-term effects of a disaster Service Revenue/expenses Goodwill Develops a strategy for the business unit and parent organization, and entire institution 18

19. Business Continuity Plan (BCP) Integrate information from COOP, BIA, and Risk Assessment, with strategies to develop plans for continuity Risk Assessment: vulnerabilities, gaps & mitigation Resource allocation for prioritized functions Based on prioritization of critical need Promotes efficiency, effectiveness, customer service 19

20. The University of North Carolina at Charlotte 20

21. Continuity Challenges Continuing/restoring essential operations during/after emergency What is essential in an academic setting? Education: classroom and online classes Research activities Administrative tasks Athletics and public activities Support and other functions How to prioritize resumption of services? 21

22. Completing your COOP List all of the critical functions/processes within the unit Effect of loss of function/process Loss of revenue/increased costs (cost per day) Legal liability, fines/penalties, public harm Loss of goodwill, other intangibles Ability to operate at reduced efficiency Recovery Time Objective (RTO) Key dependencies Contingency plans 22

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24. Relationships & Communication University partners Colleges, departments, and units Government partners Local, county, state, federal Constituent institutions of UNC System Private sector partners (including non-Profits) Hospitals, CRI-campus, American Red Cross Associations Professional organizations 24

25. Scenario Handout Read and discuss the scenario/questions Groups of 5 or 6 Select a group representative to report out what you have discussed 15 minutes to discuss; 10 minutes to report out 25

26. Thank You Office of Business Continuity Planning Department of Risk Management, Safety & Security Shawn Kiley, MPA skiley@uncc.edu www.bcp.uncc.edu 26