RISK
MANAGEMENT MISSION STATEMENT |
Texas
Tech University System |
Risk
Exposure and Losses |
The Texas Tech University System recognizes the following facts concerning
the physical, human, fiscal and environmental resources of the System:
1. During the normal course of conducting its mission, the physical, human,
fiscal and/or environmental resources of the System are routinely exposed
to various risks that can result in losses to the component institutions.
2. These physical, human, fiscal and environmental resources are valuable
assets to the System and to the citizens of the State of Texas.
3. Because of the special value of these assets, they deserve reasonable
protection consistent with the availability of funds.
4. Unless measures are taken to preserve/protect these resources, losses
will occur.
5. 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.
6. The discipline of "risk management" is a specialized process
that is aimed specifically at minimizing and controlling the agency's
exposures and losses.
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Goals Concerning Risk Management |
The following goals concerning risk management are established for
the institutions of the Texas Tech University System:
1. In carrying out the institution's business, the long-term goal
is to minimize harm to the physical, human, fiscal and environmental
resources of the System, and to minimize the total cost of risk to
the component institutions.
2. To minimize harm, and the cost of risk, each component institution
shall:
a. attempt to routinely identify all significant known perils and
risks to which the component institutions may be exposed;
b. avoid unnecessary or unreasonable exposures to the extent practicable;
c. take all reasonable and practical steps to prevent harmful events
and losses;
d. initiate reasonable and appropriate loss control techniques to
control the frequency and severity of those losses that are unavoidable;
and
e. 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.
3. In the event a harmful act or loss occurs, the component institutions
shall provide for prompt, reasonable correction or payment, to the
extent that the component institution is reasonably responsible, for
any harm done to persons or properties by the component institution
or its employees.
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Authority
and Responsibility |
The Senior Vice
Chancellor and Chief Financial Officer of Texas Tech University System
shall hire a Director, Risk Management who shall serve under the direction
of the Senior Vice Chancellor and Chief Financial Officer. The Director,
Risk Management shall be given the authority to implement, and shall
be responsible for, the institution's risk management program. The Director,
Risk Management shall employ appropriate professional and clerical staff
to accomplish institutional risk management goals and objectives. The
Director, Risk Management shall be responsible for planning, organizing,
coordinating, implementing, monitoring and controlling the institution's
risk management program.
The Director, Risk Management’s authority and responsibilities
shall not cross over into other functional areas of the institution.
However, since a comprehensive risk management program touches all other
functional areas of the institution, managers, supervisors, and employees
of all functional areas are expected to cooperate with the Director,
Risk Management in the development and implementation of the risk management
program.
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