Reducing the cost of risk at University of California Office of The President

Published on 05-Nov-2012

"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:
BA - Business Analytics, BA - Business Intelligence, BA - Risk Analytics, Big Data & Analytics, Big Data & Analytics: Risk

Overview

The University of California, the largest higher education institution in the world, applied IBM Smarter Analytics to significantly improve the enterprise risk information system for smarter decision-making.

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.

Results:
With ERMIS, the University of California Office of the President (UCOP) was able to reduce the cost of risk from around $18 per thousand of operating budget to around $13.43, translating to $493 million of return on insurance cost in 4years.

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. Police Chiefs take reporting from a paper driven process to an automated process. They can see where they need to deply resources.

Video

The University of California, the largest higher education institution in the world, applied Smarter Analytics to significantly improve the enterprise risk information system for smarter decision-making. With ERMIS, UCOP was able to reduce the cost of risk from around $18 per thousand of operating budget to around $13.43, translating to $493 million of return on insurance cost in 4years.


Products and services used

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

Software:
Cognos Business Intelligence

Legal Information

© Copyright IBM Corporation 2012 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

Document options

Resources