I am pleased to provide the FY 2008 Annual Report on the activities and financial results of The University of Texas System risk management programs and the Office of Risk Management (ORM).
The day to day activities associated with the risk management programs throughout the UT System are handled by an intricate network of highly qualified and dedicated individuals.
This network includes professionals in business affairs, environmental, health and safety, facilities, human resources, security, business continuity, and many others. The scope of risk management activities continue to expand. In FY 2008, the total population of the UT System including student, faculty, and staff was approximately 300,000. Building and business income values were approximately $22 billion.
The Risk Management Executive Committee (RMEC) provides oversight, strategic direction, and serves in an advisory capacity for all risk management programs. The Risk Management Advisory Committee (RMAC), the Environmental, Health and Safety Advisory Committee (EHSAC), and the Disaster/Mutual Aid Advisory Committee (DMAC) are comprised of Institution representatives appointed by Chief Business Officers. These groups support and facilitate cooperative efforts and make recommendations related to risk management activities that benefit all Institutions.
The timing of this report is such that it reflects financial information and activities occurring in FY 2008. However, we must acknowledge the event occurring the second week of FY 2009. Hurricane Ike has or will impact almost every program administered or coordinated by the Office of Risk Management.
In April of 2008, the commercial property insurance policy was renewed and for the first time since Tropical Storm Allison (2001), the Comprehensive Property Protection Plan (CPPP) included significant commercial named windstorm and flood insurance. It is important to recognize that the financial statements reported here reflect the purchase of the commercial insurance policy but do not reflect any losses associated with Hurricanes Dolly or Ike.
Although the losses from these hurricanes are significant, the emergency and disaster plans, loss control programs, System-wide contracts and agreements and innovative risk financing programs that have been put in place over the last several years, and enhanced in FY 2008, responded well and as envisioned.
The work that has been done by the Institutional professionals mentioned above and Office of Risk Management staff has paid huge dividends in mitigating losses. The efforts by Institutional professionals throughout the system, before, during, and after these storms were heroic and they should all be commended.
The risk management programs in the UT System are broad and comprehensive. The activities and results are described and financial reports are included in the following report.
I trust the FY 2008 Risk Management Report will be informative and helpful.
Phillip B. Dendy, CRM
Director, Office of Risk Management
The University of Texas System
