13.8. Risk Management

The University is to be protected against fortuitous loss or losses which, in the aggregate, during any financial period, would significantly affect University property, personnel, the budget or the ability of the University to continue to fulfill its educational role in the State of Michigan.

The University will apply to risks of fortuitous loss the risk management process which includes a systematic and continuous identification of loss exposures, the analysis of these exposures in terms of frequency and severity probabilities, the application of sound risk control procedures and the financing of risk consistent with University financial resources.

The objective of the Risk Management function within the University is to keep to a prudent minimum the cost of managing risk, defined as the sum of risk control costs, loss costs under self-insurance programs, insurance premium costs and the costs of risk management administration.

The Vice President for Governmental Relations and Secretary of the Board of Control  will carry out the risk management function, the responsibilities of the office to include long-range planning for the University, fulfillment of legal requirements and assistance in the maintenance of sound relationships between the University and governmental agencies, the public and the insurance community. Risk management responsibilities may be assigned to staff members with sufficient delegated authority to carry out the same. Functional ties with administrative departments, the faculty and the student body shall be maintained as may be required in accord with this policy.

The Vice President for Governmental Relations and Secretary of the Board of Control shall obtain such insurance coverage, property and liability, as will protect the University from catastrophic loss in accordance with this policy.