STRIMA 2009 Georgia Department of Administrative Services Risk Management Services September, 2009

1. STRIMA 2009 Georgia Department of Administrative Services Risk Management Services September, 2009

2. Senate Bill 425 Grants RMS authority to implement Safety and Loss Prevention programs in all state agencies Authority to allocate premiums, create incentives and penalties for state agencies based on participation and effectiveness of Safety and Loss Preventions programs (post budget) Staff Adjustments Current leadership of RMS has over 160 years of risk and insurance experience Hired two loss control officers Restructured departments to incorporate lean processes to maximize efficiency and effectiveness Aligned authority with responsibility and accountability Georgia Risk Management Activities 2009 .

3. Georgia Risk Management Activities 2009 • Comprehensive Loss Control Program (CLCP) • Implementation of SB425 • Enterprise Risk Management Approach • Tools to influence individual human behaviors • Financial impact to influence agency management • Create a “Culture of Safety” in state government • Imposed a philosophy but did not mandate a format • Created to address the eight major causes of loss in property, liability and workers’ compensation • Lead to experience based rating and allocations of premiums • Written to be flexible so that each applicable program component is customized to the organizational & operational needs of the state agency • Utilized existing policies and procedures whenever possible • Enhanced claims reporting system to capture data quickly and accurately in a usable format • Philosophy – “When loss prevention is effective something doesn’t happen” – but we can still measure performance if we have historical data

4. Georgia Risk Management Activities 2009 • CLCP- Implemented in three phases • Phase One – • Agency’s contract with DOAS to participate in the CLCP • RMS loss control officers conduct onsite visit • Existing policies and procedures evaluated • Claims trends discussed • Exposures evaluated • End of Phase One involves the creation of a risk profile and initial CLCP implementation evaluation • Recommendations – 90 day follow-up • Further consultation as necessary to assist the agency

5. Georgia Risk Management Activities 2009 • CLCP – Implemented in three phases • Phase Two – • Impose financial penalty on non-participating agencies • Consult with any agency requiring assistance with either the creation of or implementation of effective loss prevention techniques (best practices) • Create and provide baseline data from which phase three effectiveness will be measured • Communicate data to create awareness of financial implications for all agencies in state government • Celebrate early success – innovation in state agencies

6. Georgia Risk Management Activities 2009 • CLCP – Implemented in three phases • Phase Three - • Measure the effectiveness of agency program • Effectiveness measured in frequency of new claims • Assist with adjustments to agency programs as necessary • Post loss root cause analysis or accident review panels, documentation of corrective activity • Publish an annual “Risk Report” with statewide risk management data

7. Georgia 2009 • CLCP is a long term solution • Goal is to create a culture of safety • RMS provides documented measurable outcomes • Maintain excellent claims handling to mitigate existing losses • Address the ramifications of years of underfunding as well as current economic crisis • Recognizing the intangible • Making Georgia a safer state • Being good stewards of taxpayer’s dollars