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:
- 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.
- These physical, human, fiscal and environmental resources are valuable assets to the System 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 agency's exposures and losses.
Goals Concerning Risk Management
The following goals concerning risk management are established for the institutions of the Texas Tech University System:
- 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.
To minimize harm, and the cost of risk, each component institution shall:
- Attempt to routinely identify all significant known perils and risks to which the component institutions may be exposed;
- 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 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.
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.