Reform 1.17: Risk Management and Public Liability

Improved Risk Management and Public Liability Savings.

Other Information:

The Risk Management Department is responsible for the investigation and settlement of all claims against the city for losses by the public (accidents on city property, improper towing by police department, flooding from broken water pipes, etc.) Claims against the City cost taxpayers approximately $29 million annually. The City Auditor recently identified ways to improve the city’s risk management strategies to achieve $800,000 in annual savings city-wide. Among the findings of the Audit report released in August 2010: “During our audit, we found that Risk Management does not analyze systematic risks or follow Enterprise Risk Management system methodologies or other enhancing practices, nor does it maintain documented processes…We also noted that the City does not have a formalized and documented standardized claim reserving approach, which can result in inconsistent reserving practices….Moreover, we found that the review and analysis of the cost and adequacy of insurance coverage and limits is informal and not documented. As a result, the City risks purchasing unnecessary or insufficient insurance coverage and paying excessive effectively and efficiently…” We believe that the Risk Management Department should aggressively implement the 23 recommendations outlined in the Auditor’s report.

Indicator(s):

Indicator:1

Content