WIC 104 RISK MANAGEMENT AND BUSINESS CONTINUITY PLANNING FOR LOCAL WIC AGENCIES. Peg Jackson, DPA, CPCU National WIC Association

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1 WIC 104 RISK MANAGEMENT AND BUSINESS CONTINUITY PLANNING FOR LOCAL WIC AGENCIES Peg Jackson, DPA, CPCU National WIC Association

2 Learning Agenda Week 1 Risk Management and its role in WIC offices What is Risk Management? Steps in Risk Management Planning Value proposition of risk management for a WIC office Business Continuity Planning What is Business Continuity and why would a WIC office care about it? Steps in Business Continuity Planning Value proposition of Business Continuity for a WIC office

3 Benefits of Risk Management (RM) and Business Continuity Planning (BCP) RM and BCP look at the risk profile of the entire organization, not just specific areas. RM and BCP take a pro-active approach to applying strategies to reduce the frequency and severity of adverse incidents. RM and BCP incorporate effective risk management and contingency practices into everyday operations. RM and BCP create systems to support timely resumption of operations in the event of a crisis or disaster.

4 Solutions within the context of WIC Office operations Identify, Assess and Address Risk Areas Strategies & Systems for Continuity 3 Main Activities in Risk Management and Business Continuity Planning 4

5 What is Risk Management? Risk Management is the means by which an organization: Identifies and prioritizes risk areas Develops strategies to deal with risk areas Integrates risk management best practices into everyday operations.

6 Identify, Assess and Address Risk Areas 3 Main Activities in Risk Management Planning 6

7 Identify, Assess and Address Risk Areas RM planning begins by considering the risks associated with the basic structure of the organization. Coordinating activities/systems. Uses available documentation/root cause analysis to identify areas for priority attention. 7

8 Risk Management and the Four Building Blocks of Every Organization 1. Governance and Executive The people who make the policy and decisions. 2. Human Resources Employees and volunteers. 3. Operations What the WIC Office does to serve its clients and the community at large. 4. Reputation - The WIC Office s good name and reputation. 8

9 Risk Management and the Four Building Blocks of Every Organization All risk areas will be found within one or more of the four building blocks. Examining each of these areas for risks and/or evidence of ongoing problems creates an important level of efficiency in the process.

10 Identify Risks Within the four organizational areas Look for these clues! Recent insurance claims (the past 3-5 years). Common complaints from staff, volunteers, participants or parents IMPORTANT! Pay attention to complaints about inappropriate behavior. Human Resources problems. Shrinkage, disappearance, or sabotage IT problems that interfere with normal operations. Recent developments - particularly recent litigation and court decisions. 10

11 Select a Strategy for Dealing with the Risks Avoidance Don t go there! Retention Increase deductibles; pay for small claims with resources. Modification Take action to reduce frequency and severity of risk. Transfer Pass the financial risk to another party via contractual means, insurance, etc. 11

12 Monitor for Results In 3-6 months, check to see if Were there fewer accidents or close calls? Are new internal controls working? Review industry loss trends to benchmark a success. 12

13 The Risk Management Plan Decide which risk areas you will address in the next 3-6 months. Decide on a strategy to deal with each of the risks. Document the risk area selection and strategy. Do what is necessary to implement the strategy. Don t be discouraged if the strategy doesn t work try another! Begin the next round of risk management planning in 6 months.

14 Strategies for Business Continuity 3 Main Activities in Risk Management and Business Continuity Planning 14

15 What is Business Continuity Planning? Business Continuity Planning is the means by which a WIC Office can develop and document the policies, procedures, activities, and protocols necessary to resume essential operations immediately following a crisis or disaster. 15

16 Business Continuity Planning Three Phases 1. Response to the immediate emergency. 2. Recovery phase that moves the organization toward resumption of normal operations. 3. Resume normal operations phase in which fully resumes normal operations. This phase utilizes the systems and plans that were put into place prior to the emergency. 16

17 Examples of Sources of Interruptions Fire Loss of electrical power Corruption of financial or operational databases Data breach Allegations of sexual misconduct Threats of violence Loss of essential members of staff or executive team 17

18 Typical Plan Protocols Evacuation of staff, volunteers and clients. Communication with staff, volunteers and clients. Public relations and media contact. Plan for resumption of operations and programs. Alternative operations sites. Staff status, availability, and notification, including emergency contact information. Protection of sensitive documents and/or digital records. 18

19 Crisis Communication Prepare a Crisis Communication Plan. The Designated Spokesperson is always prepared to speak with the media. Executives, employees and volunteers understand that the designated spokesperson is the ONLY individual authorized to speak with the media. 19

20 Continuity Critical Functions Systems in place so your WIC Office can resume operations anywhere. Funding in place to resume operations in an alternative location. Getting back on track to resume normal operations. 20

21 Key Elements in Continuity Planning Online access to systems containing important files/data. Plans in place that identify the actions/sequence necessary to re-start the critical functions within the WIC Office. Ensure access to the WIC Office s financial resources bank accounts, investments, lines of credit. This access may be hampered if the nature of the disaster is community-wide. Ensure access to key employees alternative means of contact via cell phones, text messages, personal addresses, etc. Ensure that all critical functions can be addressed by means of back-up staffing. 21

22 Summary Risk Management and Business Continuity Planning go hand-in-hand to help your WIC office deal with and move beyond crises and disasters. The Plans will help you to deal with issues that have the potential to damage your WIC office and also to help you deal with an event that interrupts normal business operations.