University of California – Office of the President

Reducing risk and lowering costs with integrated data management

Published on 07 Oct 2010

Validated on 16 Dec 2013

"ERMIS significantly improves the University system’s ability to identify and manage risk. UC will be able to more effectively focus its risk management efforts and ultimately save the University money" - Grace Crickette, chief risk officer, University of California

Customer:
University of California – Office of the President

Industry:
Education

Deployment country:
United States

Solution:
C-Suite Framework, Smarter Planet

Overview

The Office of the President is the system-wide headquarters of the University of California (UC), managing its fiscal and business operations and supporting the academic and research missions across its campuses, labs and medical centers.

Business need:
The University of California needed a proper framework for its enterprise risk management. Its existing reporting and decision-support environment did not fully address the need of decision makers to understand the UC system’s level of risk.

Solution:
UC engaged IBM to implement an Enterprise Risk Management Information System (ERMIS). The solution integrates previously siloed data to provide near real-time information to all levels of the university.

Benefits:
• The system helps the university understand what drives subpar performance and costly losses. • By providing better and more current data and analytical tools, senior officials can better understand the return-on-investment (ROI) associated with various remediation strategies and tactics • Since better risk ratings translate into lower interest rates on debt, a 0.1% decrease in interest rate represents over $10 million in potential savings

Case Study

University of California – Office of the President

Oakland, California, United States
Education
www.ucop.edu/

Solution Components
• IBM WebSphere® Application Server
• IBM Cognos 8 Business Intelligence
• IBM DB2
• IBM Global Services - Business Analytics and Optimization, Financial Management
• IBM Global Technology Services Strategic Outsourcing: e-business Hosting Managed Hosting



The Office of the President is the system-wide headquarters of the University of California (UC), managing its fiscal and business operations and supporting the academic and research missions across its campuses, labs and medical centers. UC is comprised of 10 campuses,
five medical centers and one U.S. Department of Energy (DOE) lab, with approx. $20B in revenues. By strategically managing risk, the Office of Risk Services (ORS) can reduce the chances of loss, create greater financial stability and protect UC resources.

The Need
The University of California needed a proper framework for its enterprise risk management. Its existing reporting and decision-support environment did not fully address the need of decision makers to understand the UC system’s level of risk. UC determined that the information they required for decision making was either not integrated, missing, ambiguously defined or simply inaccessible.

The Solution
UC engaged IBM to implement an Enterprise Risk Management Information System (ERMIS). The solution integrates previously siloed data to provide near real-time information to all levels of the university. Data relevant for increasing visibility, metrics and longitudinal reporting is collected in an Enterprise Risk Management data warehouse (DB2) and reported using IBM Cognos® software.

What Makes it Smarter
• The system helps the university understand what drives subpar performance and costly losses. It provides visibility into what campuses and medical centers have the best and worst cost of risk.
• By providing better and more current data and analytical tools, senior officials can better understand the return-on-investment (ROI) associated with various remediation strategies and tactics
• Since better risk ratings translate into lower interest rates on debt, a 0.1% decrease in interest rate represents over $10 million in potential savings

“ERMIS significantly improves the University system’s ability to identify and manage risk. UC will be able to more effectively focus its risk management efforts and ultimately save the University money.” — Grace Crickette, chief risk officer, University of California

For more information
Please contact your IBM sales representative or IBM Business Partner.
Visit us at:

ibm.com/education

Components

IBM products and services that were used in this case study.

Software:
WebSphere Application Server, Cognos 8 Business Intelligence, DB2 for Windows

Service:
GBS BAO: Business Analytics and Optimization Strategy, GTS Strategic Outsourcing: e-business Hosting, Information Agenda Engagement

Legal Information

© Copyright IBM Corporation 2010 IBM Corporation 1 New Orchard Road Armonk, NY 10504 U.S.A. Produced in the United States of America September 2010 All Rights Reserved IBM, the IBM logo, ibm.com, Let’s Build A Smarter Planet, Smarter Planet, the planet icons, WebSphere, Cognos and DB2, are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates. The information contained in this documentation is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this documentation, it is provided “as is” without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this documentation or any other documentation. Nothing contained in this documentation is intended to, nor shall have the effect of, creating any warranties or representations from IBM (or its suppliers or licensors), or altering the terms and conditions of the applicable license agreement governing the use of IBM software. All customer examples described are presented as illustrations of how those customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics may vary by customer. SWC14048-USEN-00

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