Risk Management Policy - Northern Michigan University

Purpose:

To establish policy for the University's Risk and Insurance Management Program.

Applicability:

All Faculty and Staff.

Policy:

The administration of Northern Michigan University recognizes its role of stewardship over the assets of the University, both human and property.  It interprets its responsibility in this area as requiring the highest possible concern for the safety of its students, employees, and the public, combined with a concern that the maximum protection be accorded University property to prevent fiscal loss.

The management of the risks of loss to the University in terms of financial resources shall be the responsibility of the Risk and Insurance Manager and administered through a Risk Management Program.  This program shall consist of the continuous identification and analysis of loss exposures, the determination of the most appropriate risk management technique for these loss exposures, implementing the risk management technique and monitoring the result.

The risk management technique for loss exposures shall include but not be limited to avoidance, loss control, non-insurance risk transfers, insurance and loss retention.  The University recognizes its ability to budget for and thereby retain limited and predictable risks of financial loss.  It shall not be the University's practice to attempt to insure such foreseeable and bearable expenses if alternatives can be achieved with due regard to sound business practice.  The retention limit for exposures to loss shall be determined by the Vice President for Finance and Administration upon the recommendation of the Risk and Insurance Manager and in recognition of insurance conditions.