We Provide The Five Basic Techniques Of Risk Management:

Avoidance
Many times it is not possible to completely avoid risk but the possibility should not be overlooked. For example, at the height of a thunderstorm, Physical Plant may not release vehicles for travel until the weather begins to clear, thus avoiding the risk of auto accidents during severe weather. Some buildings on campus have had repeated water problems in some areas. By not allowing storage of records or supplies in those areas, some water damage claims may be avoided.

Retention
At times, based on the likely frequency and severity of the risks presented, retaining the risk or a portion of the risk may be cost-effective even though other methods of handling the risk are available. For example, the University retains the risk of loss to fences, signs, gates and light poles because of the difficulty of enumerating and evaluating all of these types of structures. When losses occur, the cost of repairs is absorbed by the campus maintenance budget, except for those situations involving the negligence of a third party. Although insurance is available, the University retains the risk of loss to most University personal property.

Spreading
t is possible to spread the risk of loss to property and persons. Duplication of records and documents and then storing the duplicate copies in a different location is an example of spreading risk. A small fire in a single room can destroy the entire records of a department's operations. Placing people in a large number of buildings instead of a single facility will help spread the risk of potential loss of life or injury.

Loss Prevention and Reduction
When risk cannot be avoided, the effect of loss can often be minimised in terms of frequency and severity. For example, Risk Management encourages the use of security devices on certain audio visual equipment to reduce the risk of theft. The University requires the purchase of health insurance by students who are studying abroad, so that they might avoid the risk of financial difficulty, should they incur medical expenses in another country.

Transfer
In some cases risk can be transferred to others, usually by contract. When outside organisations use University facilities for public events, they must provide evidence of insurance and name the University as an additional insured under their policy, thereby transferring the risk of the event from the University to the facility user. The purchase of insurance is also referred to as a risk transfer since the policy actually shifts the financial risk of loss, contractually, from the insured entity to the insurance company. Insurance should be the last option and used only after all other techniques have been evaluated.

Contracts
Often vendors and service providers will attempt through a contract to release themselves from all liability for their actions relating to the contract. These are often referred to as "hold harmless or indemnification" clauses. Due to the complexity of interpreting these provisions, the President has delegated contracting authority for the University solely to staff in Contracts & Procurement. The Office of University Risk Management reviews contracts and agreements as requested by Contracts & Procurement to identify and assess risks, evaluate insurance standards, and review hold harmless and indemnification provisions. The Chancellor's Office requires that the University obtain in most instances not only a Certificate of Insurance, but also an Endorsement. Collecting these documents is often the most time consuming aspect of the contracting process.