FM 101: Risk Management—
More Than Just Insurance

by Shari Spung

Financial Management has a new department! Effective 11/1/03, the Office of Risk Management moved under the Financial Management umbrella. The 16 staff members are very happy to be part of Financial Management and are eager for others to know more about what Risk Management is all about.

Formerly reporting to Business Services, the Office of Risk Management is led by Elizabeth Cherry. Elizabeth and her staff manage a variety of insurance programs for UW that total approximately $61 million. The staff is a diverse group, including several attorneys and risk management/claims professionals. Here’s a link to Risk Management’s Organization Chart (it will open in a new page). Use your back button to return to this page.

There are 5 programs in Risk Management:

• Risk Consulting provides services to all of the schools and colleges of UW. They also do consulting with all academic and administrative units on reducing, avoiding, and transferring risk.

• Risk Financing manages the various ways that losses are financed at UW. For predictable losses such auto, general liability, employment practices, and medical malpractice, UW self-insures through Portage Bay Insurance (PBI). PBI is a “captive” insurance company owned by UW. PBI contracts with UW for financial and claims management services. The formation of PBI in July of 2002 allowed UW access to the reinsurance market, which has saved money and allowed for a more effective program of self insurance. For less predictable losses, we choose to insure through commercial policies – we have over 60 of them covering our various exposures. Some other risks are handled through non-insurance, such as business risks and construction disputes.

• Claim Services administers the handling of tort claims (claims for civil wrongdoing) made against UW and its hospitals and affiliated medical sites. In addition to resolving claims, this group works closely with its clients on communicating “lessons learned” so that losses can be reduced or eliminated in the future. A robust claims management system collects data on claims to form the basis of trends which are monitored for loss reduction.

• Workers Compensation assists UW supervisors in bringing injured workers back to work. They work closely with the Department of Labor and Industries to make sure their handling of our claims is appropriate and that the University is in compliance with statutory obligations. They also develop loss intervention strategies to reduce UW’s premium that is paid to the Department of L & I.

• UCIRO (University Complaint Investigation and Resolution Office) investigates discrimination, harassment, retaliation, and scholarly integrity complaints which are made before a claim is filed. Because they are able to resolve viable complaints in advance of a claim or lawsuit being filed, they contribute directly to reducing claim and litigation frequency.

You’ll hear more about Risk Management and their staff in upcoming editions of New Directions.