Under the continued heightened national state of alert, educational institutions' need for effective risk management is compounded further by the possibility of terrorist incidents. And not just at home. With the number of students going abroad increasing each year, and attacks such as the one on the commuter trains in Spain, educational institutions recognize the need to be prepared to handle security and safety issues at all times in all places.

The issues on any school administrator's plate at any one time are enormous, and there are never easy solutions. However, failure to understand, prepare for, and properly manage risk issues can financially impact an educational institution, rightfully raise concerns among parents and regulators, and leave an institution's reputation, and thus its future, in tatters.



"The concept of women as a reward for male athletes is a rampant attitude throughout both college and pro football... This committee should take the opportunity amidst all this scandal to examine whether or not our laws are adequately protecting both the safety and equality of women on campus."
Rep. John Conyers, Associated Press, 3/1/2004

Adapting leading safety and security practices calls for the creation of a risk management culture where everyone participates in identifying, managing, and reducing or eliminating risks to students, staff, faculty, campus visitors, and the physical plant of the institution. The rewards from such efforts are simple: significant cost savings, continued access to funding sources (public or private), enhanced security and reputation, and improved morale.

In considering how to mitigate risks on campus, administrators and risk managers should be asking themselves questions such as:

• Have I assessed the various risks facing my educational institution?
• What steps have I taken to mitigate these risks?
• Do I have policies, procedures, and protocols in place relating to security and emergency response planning?
• What security and safety training has been provided to staff, teachers, and students?
• Am I aware of government regulations impacting my educational institution?
• Are my policies, procedures, and protocols in line with best practices for educational institutions?
• Are we prepared to handle any risk-related litigation?
• Are we able to quickly respond to the media, our students, our employees, relevant regulators, and parents in the event of a risk-related incident?

The development of a proactive and effective risk management culture is vital to the health and well-being of any educational institution, its ability to receive grants and other funding, and its standing among current and prospective students, alumni, regulators, and the wider community. To create this culture and help ensure against risks, there are a number of steps that administrators and risk managers need to take.

In the first instance, an evaluation needs to be conducted of the range of internal and external risks and potential losses facing the educational institution. This should include an assessment of the probability of such risks occurring as well as the tools in place to manage these risks. Particularly in these security and safety conscious times, there also should be discussion of possible emergency scenarios such as blackouts, terror attacks, and other forms of extreme crises at an educational institution.

Once the evaluation is complete, administrators and risk managers need to consider the appropriate technique, or combination of techniques (eliminating, minimizing, insuring) for managing the risk. The techniques under discussion should be compared against what is considered best practice at other institutions and in the wider world.



Consider the following statistics:

• 1,400 college students die every year in alcohol-related incidents.
• More than 600,000 college students are assaulted each year by other students who have been drinking.
• More than 500,000 college students are injured each year in alcohol-related accidents.
• More than 70,000 students annually are victims of date rape or sexual assault in incidents where alcohol is a factor.
• About 2.1 million students between 18 and 24 drive while intoxicated.
• Underage drinking costs the country $53 billion annually.

Sources: The National Institute on Alcohol Abuse and Alcoholism, the Campaign for Alcohol-Free Sports TV, Security on Campus Inc. The News-Star, 3/11/2004

Implementation of the technique(s) might entail: upgrading security on campus; developing new policies related to alcohol, special events, or use of facilities; providing training and informational materials to students, staff, and faculty; purchasing additional insurance coverage against certain risks; creating risk management councils; and establishing internal and external communications protocols.

Special attention should be given to planning for emergency response situations. The Office of Homeland Security continues to emphasize this need and provides relevant information as well as grants to schools. In both FY 2003 and FY 2004 it made $30 million available for emergency response planning programs. This may entail a more in-depth assessment of the institution's vulnerabilities, the development of proactive and reactive policies and procedures, and engagement in real time drills and exercises to test the plan. The end goal is to develop effective decision-making and response execution strategies in relation to any type of threat or incident.



"No matter what safety mechanisms are put in place, officials have to figure out how to prevent fires from being started, experts say. Many students light fires to try to get attention or cause mischief, without the intention of causing physical harm, said Ed Comeau, director of the Center for Campus Fire Safety in Massachusetts. In crowded college dorms, though, where students are used to constant false alarms, the games can turn deadly. About one-third of campus fires across the country are caused by arson, he said."
The Journal News, 2/21/2004

Finally, administrators and risk managers need to continually monitor, evaluate, and modify, as needed, the techniques being implemented to reduce previously recognized and newly identified risks.

To help evaluate and manage their risk exposures, administrators and risk managers at educational institutions should consider the following services:

• Best Practices Risk Assessment
• Business Continuity Planning
• Emergency Response Planning
• Critical Incident Prevention and Planning
• Strategic Risk Communications
• Claims Consulting
• Risk Technologies

Marsh's Risk Consulting practice has the tools and solutions to assist you in proactively dealing with risk issues. Working together, we can help you institutionalize best practices which will make your educational institution a leader in the area of risk management.

For information on how Marsh's Risk Consulting practice can assist you, please contact us.