Managing Risk and Liability
11
Managing Risk and Liability Sponsored by: Campus Y – Social Innovation Incubator UNC-Chapel Hill Division of Finance April 13, 2012
-
Upload
aline-walsh -
Category
Documents
-
view
59 -
download
0
description
Managing Risk and Liability. Sponsored by: Campus Y – Social Innovation Incubator UNC-Chapel Hill Division of Finance April 13, 2012. Topics of Discussion. Liability Theory of Negligence Managing Your Risks Governance, Risk & Compliance Enterprise Risk Management - PowerPoint PPT Presentation
Transcript of Managing Risk and Liability
Managing Risk and LiabilityManaging Risk and Liability
Sponsored by:
Campus Y – Social Innovation IncubatorUNC-Chapel Hill Division of Finance
April 13, 2012
UNC.edu 2
Liability
•Theory of Negligence
Managing Your Risks
•Governance, Risk & Compliance
•Enterprise Risk Management
Building Your Risk Management Program
•Keys to Success
•Getting it Started
Topics of DiscussionTopics of Discussion
UNC.edu 3
A One Hundred Year Old Case Study in Risk Management
1912 - 2012
The TitanicThe Titanic
UNC.edu 4
A duty of care is owed
That duty is breached
The breach causes some type of harm
There’s direct causation between the duty and harm
Theory of NegligenceTheory of Negligence
UNC.edu 5
Governance• Describes the overall management approach through which
senior executives direct and control the entire organization
Risk Management• The process through which management identifies, analyzes
and responds appropriately to risks that might adversely affect the organization's business objectives
Compliance• Conforming with stated requirements
Governance, Risk & Compliance (GRC)Governance, Risk & Compliance (GRC)
UNC.edu 6
Risk CategoriesRisk Categories
Strategic Risk: Goals & objectives
Financial Risk:Loss of assets or stakeholder value
Operational Risk: Ongoing management process
Compliance Risk: Laws & regulations
Political (Sovereign) Risk:
Adverse actions of governments
Technology Risk: Protecting electronic information
Reputation Risk:Tarnishing of image or brand - equity
UNC.edu 7
Risk Management Process
Risk Management Process
Follow the basic risk management process:
1. Identify, classify and assign ownership to your risks
2. Examine your options for handling these exposures
3. Select the best techniques4. Implement the techniques5. Monitor, measure and improve
Risk management is not the same as risk avoidance. Weigh the costs and benefits of the risk and make responsible decisions.
UNC.edu 8
Mapping Your RisksMapping Your Risks
Risk can be categorized by its:
LikelihoodSeverity of Impact
Where it falls on your riskmap affects how you manage it
UNC.edu 9
Support from the top is a necessity
Determine your risk appetite
Embed risk management into your organization’s fabric
Link risk management to your strategic plan and growth
Become risk intelligent
Risk is fluid, so this is a continuous process
Keys to SuccessKeys to Success
UNC.edu 10
Getting StartedGetting Started
Seek the involvement of senior management• The “Tone at the Top” drives successful risk management
Establish a risk management committee• Representation from all areas of your enterprise
Conduct an enterprise-wide risk assessment• Focus on the most significant risks at the strategic level
Build your program in incremental steps• Focus initially on a small number of top risks; and
gradually develop a more mature program
UNC.edu 11
Questions & Comments
Questions & Comments
Steve Kenny
Director of Risk Management ServicesTreasury & Risk Management Services
University of North Carolina at Chapel HillCampus Box 1100, 104 Airport Drive
Chapel Hill, NC 27599-1100
t. 919.962.7360
