Statement of Facts Concerning Risk Exposures and Losses
The President and Board of Regents of Texas Southern University recognize the following facts concerning the physical, human, fiscal and environmental resources of this University:
- During the normal course of conducting the business of this University, the physical, human, fiscal and/or environmental resources are routinely exposed to various risks that can result in losses to the agency.
- These physical, human, fiscal and environmental resources are valuable assets to University community and to the citizens of the State of Texas.
- Because of the special value of these assets, they deserve reasonable protection consistent with the availability of funds.
- Unless measures are taken to preserve/protect these resources, losses will occur.
- The provision of such protection requires a significant commitment of time, money, resources and staff to manage, preserve and protect these resources in the most cost effective manner.
- The discipline of “risk management” is a specialized process that is aimed specifically at minimizing and controlling the University’s exposures and losses.
Agency Goals Concerning Risk Management
In recognition of the above facts, the following goals concerning risk management are established for the agency by the Board.
- In carrying out the University’s business, the long-term goal is to minimize harm to the physical, human, fiscal and environmental resources of the University, and to minimize the total cost of risk.
- To minimize harm, and the cost of risk, the University shall
- attempt to routinely identify exposure to all significant known perils and;
- avoid unnecessary or unreasonable exposures to the extent practicable;
- take all reasonable and practical steps to prevent harmful events and losses;
- initiate reasonable and appropriate loss control techniques to control the frequency and severity of those losses that are unavoidable; and
- in accordance with State law, insure appropriate individual or aggregate exposures that are of such large potential losses that the use of normal operating expenses for payment of losses is prohibitive.
- In the event a harmful act or loss occurs, the University shall provide for prompt, reasonable correction or payment, to the extent that the University is reasonably responsible, for any harm done to persons or properties by the University or its agents.
Authority and Responsibility
The President shall appoint or hire a University risk manager who shall serve under the direction of the Vice President for Administration and Finance / Chief Financial Officer. The risk manager shall be given the authority to, and shall be responsible for, the University’s risk management program. The risk manager shall employ, (subject to Executive approval and availability of funds), a staff of risk management professionals, and technical and clerical support staff that will accomplish University risk management goals and objectives. The risk manager shall be responsible for planning, organizing, coordinating, implementing, monitoring and controlling the University’s risk management program.
The risk manager’s authority and responsibilities shall not cross over into other functional areas of the University. However, since a comprehensive risk management program touches all other functional areas, managers, supervisors, and employees of all functional areas shall cooperate with the risk manager in the development and implementation of the risk management program.