UNCW Institutional Risk Management Tier I Response Planning

UNCWInstitutional Risk Management

Tier I Response Planning

Spring 2013

University of North Carolina Wilmington

Presentation Overview

Response Plan Process

Tier 1 High Risk Response Plans

Response Plan Summary


Presentation OverviewTier 1 Response Plans

High Risk Continuity of Operations Human Capital Management

Regulatory Intervention Volatility of Essential Resources

Campus Health & Safety Med High Risk

Research Support Risk Management Integration Diverse Revenues* Participant Programs Infrastructure*Diverse Revenues has been consolidated with Essential Resources

Today’s Presentation Continuity of Operations Human Capital Management

Regulatory Intervention Volatility of Essential

Resources Campus Health & Safety

Research Support


High Risk Level Summary

ImpactSeriousSeriousSeriousSevereSevereSerious

LikelihoodAlmost CertainAlmost CertainLikelyPossiblePossibleLikely

Risk Area1. Volatility of Essential Resources2. Regulatory Intervention3. Human Capital Management4. Campus Health and Safety5. Continuity of Operations6. Research Support?


Response Plan Process Assigned Leads. Workgroups comprised of SME’s

One key risk. Example: Loss of Specialized Facilities

Use Risk Statement and KRI guidance

Describe Mitigations In Place or Initiated

Develop Next Steps to reduce residual risk

Senior Leaders offered feedback on Response Plans

Implement Action Steps and Continuous Measurement

Continuity of Operations

Challenges Related To Post-Disaster Financial and Space Management

Key Risk: Loss of Specialized Facilities


Continuity of Operations Objective:

Provide state of the art research and instructional facilities that attract world class faculty, staff and students to UNCW and provide for the continuation of these services in the face of emergency situations and events.

Risk Statement:Loss of specialized research and instructional space in Dobo Hall could occur

from a myriad of natural, man-made or intentional events – resulting in potentially enormous reputational and financial losses, faculty flight and loss of research relating to our core teaching and research missions.

Indicator(s):The post-disaster vulnerability of specialized research and instructional space

as measured by related utilization and financial impacts and

degree to which replacement space is available, the number of related class seats per year, the square footage of specialized space, research dollars per building and specialized building contents value.


Continuity of OperationsSupporting Data Utilization and Financial Impacts

• 100 fume hoods and 3 biosafety cabinets• Limits of insurance versus value and risks (contents insured for $4.3 million)• Limited animal facilities• 80% of Dobo space is specialized• 17,800 Students potentially affected by loss of specialized space (AY12-13)

Interruption of use of specialized instructional /research 2010-2012• 2 power outages• 0 days of campus evacuation• Several other significant infrastructure outages (sewer, water, IT, HVAC)


Continuity of Operations Mitigations Current

• Inspections• Backup generators and data backup• Building maintenance – cooling tower, fume hoods, controls• Relationships with off campus partners and other universities• FEMA approved mitigation plan• Security layers (UPD, Locks, Door Access)• Safety and emergency response training and drills

In Process• Redundant chiller• Connection to Regional Energy Plant• COOP initiative for academic departments


Continuity of OperationsExit Strategy Proposed Next Steps

• Ensure the completion of laboratory or departmental specific COOP plans• Integration of unit-specific plans into larger COOP plans, incorporating all stakeholder

input• Aggressive preventative building and system maintenance• Expand focus from research/instructional to all specialized facilities (e.g., hardened

facilities and facilities with high value contents)

Expected Outcome(s)• Having robust data-driven contingency priorities in place for specialized space before

an adverse event occurs can result in a smoother and lower cost recovery and a reduction in lost awards, number of students directly affected, enrollment impact and time to effect facility restoration.

Human Capital ManagementChallenges Related To

Human Capital and Talent Management

Key Risk: Inability to Deliver Effective and Efficient Institutional Performance


Human Capital Management Objective:

Contribute to the institution’s success by attracting and retaining the high quality talent required to ensure achievement of the university’s strategic goals and meet operational needs.

Risk Statement: Effective and efficient institutional performance may be constrained by the inability to consistently attract and engage a qualified and skilled workforce.

Indicators: Human capital-related vulnerability as measured by productivity, performance ratings, employee satisfaction, turnover and retirement rates and recruitment and retention of qualified employees


Human Capital Management Key Mitigations

• Monitoring workforce trends to identify potential risks• Employee Engagement Survey• Enhanced New Employee “On-Boarding” program• Reinstatement of competency-based supervisory training (professional

development position reinstated .8 FTE)

Next Steps• Improve and expand analysis of workforce trends, turnover causality and

potential impact.

• Further refine talent management strategy, including but not limited to diversity, engagement, collaboration and efficiency.

Regulatory InterventionCompliance Challenges

In an Inherently Decentralized Environment

Key Risk: Non-Compliance due to Regulation Proliferation


Regulatory Intervention Objective:

Mitigating regulatory compliance risk in an inherently decentralized environment

Risk Statement:Deficiencies in compliance-related institution-wide coordination, standards,

support or accountability could lead to adverse findings or verdicts and severe reputational and/or financial liability.

Indicator:The degree to which there exists a proliferation of federal and state

regulations with an increased interest in oversight and enforcement (i.e., export controls, research regulation, ADA, Department of Education, NCAA)


Regulatory Intervention Key Mitigations:

• Periodic internal and external audits• Online training to augment current compliance training in this resource

challenged environment

Next Steps:• Fund and hire a compliance coordinator• Finalize campus coordinated compliance policy• Finalize compliance calendar/matrix and web portal• Inventory of compliance programs and FTE’s with a majority of job

responsibilities including compliance• Quarterly summits with designated responsible program compliance officers

Campus Health and Safety

Challenges Related ToAn Open Campus Environment

Key Risk: Clery Act Non-Compliance


Campus Health and Safety Objective:

To maintain compliance with the Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act (Clery act) and associated regulations

Risk Statement:Clery Act noncompliance could occur due to the diffuse nature of required elements and the concentration of compliance responsibility in one area – resulting in potential fines, unmitigated risk to safety and negative impact to the institution’s reputation

Indicators:Institutional vulnerability of non-compliance and associated financial and reputational losses as measured by court rulings, DOE enforcement trends, UNCW program diversification trends (or growth in areas with potential to have associated reportable events), the concentration of current compliance efforts and the degree to which reporting responsibilities are formalized


Campus Health and SafetyClery Act Noncompliance : Exit Strategy

Key Mitigations:• Communication tools (UNCW Alert, Conference Bridge, CDT, University/Dept.

Policies)• Safety/security training in New Employee Orientation• 2009 Campus Crime Reporting Review conducted by UNCW Internal Audit• Self-audit of crime stats YTD 2013• Staff Resources

o Student Affairs Case Manager (2009)o University Police Crime Analyst

Next Steps:• Determine appropriate ownership for Clery compliance (such as a Clery Compliance

Committee related to IRM or the Chancellor’s Council on Safety and Security)• Funding source and training objectives for functional training exercises• Identify in-roads for enhancing awareness of resources and ownership among

faculty and staff

Volatility of Essential Resources

Challenges Related To Slow Economic Recovery

Key Risk: Changing Resources to Support Institution Mission and Goals



Objective:Ensuring that adequate resources are available for financial support of the institution’s mission and goals

Risk Statement:Further budget reductions and reallocation of resources could occur due

to declining appropriations and the inability to offset the cost by increasing student tuition and fees – potentially resulting in an inability to ensure the availability of adequate resources to support the institution’s mission and goals.

Indicator(s):Vulnerability of resource availability as measured by budget and

appropriations trends



Key Mitigations:• Monitoring GA and Legislative Discussions• Modeling impact of Federal Sequestration• Supporting innovation in the creation of new revenue sources• Enhanced management processes and business analytics tools

o Enrollment Goal Setting to support resource needs generationo Cost Allocation Model to inform decisions on resource allocation and reallocationo Initiated development of Early Warning Business Analytics tools

Next Steps:• Evolving business analytics and predictive modeling• Implement Unified Budget Model proposal• Complete sensitivity analysis on grant awards and the associated impact on

indirect cost pool

Research Support

Ensuring Adequate Support for Institutional Research

Key Risk: Research Compliance Failures


Research Support Objective:

Compliance with federal, state, university and sponsor requirements

Risk Statement:Compliance failures can result from investigator and/or institutional negligence or misconduct resulting in eligibility restrictions for sponsors, repayment, fines and disruption of research activity and programs

Indicator(s):Audit findings, inspection reports, adverse events, allegations of

scientific/research misconduct


Research Support Key Mitigations:

• Consolidated research compliance programs under single umbrella (Office of Research Services)

• Increased use of videoconference training programs• Monthly “problem solving and compliance” sessions with ORS and other unit

heads

Next Steps:• Increased use of RAMSeS to reduce compliance risk (implementation of human

subjects research, animal research, and financial conflict of interest modules)• Increase outreach and training programs• Further analysis and treatment of: fluctuating availability of and mix of research

opportunities, funding model variability and viability, and intellectual property management. Re-evaluate risk level.


Response Plan Summary

ImpactSeriousSeriousSeriousSevereSevereSerious

LikelihoodAlmost CertainAlmost CertainLikelyPossiblePossibleLikely

Risk Area1. Volatility of Essential Resources2. Regulatory Intervention3. Human Capital Management4. Campus Health and Safety5. Continuity of Operations6. Research Support?Mitigations1. Evolve business analytics and modeling of key funding streams2. Better coordinate regulatory compliance with possible compliance coordinator hire3. Further analyze trends and further refine talent management strategies4. Ensure Clery Compliance with improved coordination of emergency notification requirements and exercises5. Assess plans and insurance for all specialized facilities and integrate unit plans with institutional plans6. Further utilize technology to ensure research compliance; in addition, analyze funding availability and intellectual property management; subsequently, re-evaluate risk level

Documents

UNCW Institutional Risk Management Tier I Response Planning