I. Directive

A. California State University, Fullerton recognizes the need for an effective and comprehensive Risk Management Program ("Program") to address unanticipated and unintended losses to its personnel, financial resources and property. The University will manage these risks without unnecessarily limiting activities that advance its Mission & Goals through the effective management of the Program promulgated under the auspices of this Directive.

B. The Program will provide:

1. Training, tools and materials to faculty, staff and administrators to enable them to regularly and formally identify and analyze loss potential; examine alternative risk management techniques; select and implement appropriate management technique(s); and monitor and document the results of selected risk management efforts.

2. Advice and consultation to faculty, staff and administrators regarding how best to identify and manage loss potential. When necessary, the Director of University Risk Management will consult with University Counsel, the Director of Internal Audit and/or the CSU System Risk Manager to review alternatives on responding to a loss exposure.

3. Monitoring of the results of campus-wide risk management practices to identify priorities for further training and education. These monitoring efforts will lead to the production of an annual report for the President reviewing the previous year's risk management activities, issues, losses, costs, trends and major initiatives, and any recommended amendments to this Directive.

4. An annual campus-wide risk assessment.

C. The Program will undergo annual review and revision, and be distributed as appropriate and necessary to comply with this Directive and the University's risk loss experience. A copy of the Program is available through the Risk Management Office.

II. Authority

The authority to enact this Directive and the Program is granted by California State University Executive Orders 715 and 849. The President hereby assigns overall management for the Program to the Vice President for Administration.

III. Scope

This Directive applies to all University programs and activities wherever they occur, whether on or off-campus. Campus auxiliary organizations are responsible for applying risk management practices to their respective programs and activities.

IV. Definitions

A. Loss. A reduction or elimination of value; an unfavorable deviation from expectations. For example, damage to a University building or property; injury or death to an employee; costs associated with defending a lawsuit; or diminished goodwill or standing.

B. Risk. A condition in which a loss or losses are probable.

V. Accountability

A. The Vice President for Administration will ensure that this Directive and the Program are implemented and regularly communicated to faculty, staff and administrators, and that changes to the Program are implemented in accordance with this Directive.

B. The Director of University Risk Management is responsible for coordinating campus risk management assessment programs and activities, and developing and delivering training and assessment methodologies to assist faculty, staff and administrators to effectively implement this Directive and the Program.

C. A University Risk Management Committee will assist in the identification and analysis of campus-wide losses, and provide counsel and recommendations regarding (a) the development of training and education strategies and (b) guidelines and procedures that enable faculty, staff and administrators to more effectively manage the risks associated with University programs and activities.

D. Faculty, staff and administrators are responsible for managing the risks associated with the programs and activities within their organizational authority or responsibility, complying with this Directive and the Program, and reporting conditions that may represent an unreasonable risk of loss or injury.

The contact for questions concerning this Directive and the Program is the Director of University Risk Management.

Reviewed and Approved By President Gordon: April 1, 2004