Drafter
Clerk 08/12/2014
Title
AN ORDINANCE relating to the duties of the risk manager; and amending Ordinance 3581, Section 2, as amended, and K.C.C. 2.21.020 and Ordinance 11984, Section 3, as amended, and K.C.C. 2.21.030.
Body
PREAMBLE
A performance audit of the office of risk management conducted in June of 2013 concluded that King County could be exposed to costly future liabilities unless it implements an integrated countywide approach to managing risks.
King County is self-insured; it budgets an amount to fund potential future losses based on actuarial calculations.
The county also maintains catastrophic insurance to cover individual claims with losses above a certain threshold. This threshold is the self-insured retention. King County is exposed to increased claim costs as a result of the county's increased self-insured retention. Now at seven million five hundred thousand dollars, the self-insured retention has more than doubled since 2010 due to significant claims payments in 2010 and 2011.
An integrated approach to managing risks that is more effective in identifying emergent risks and aggressively addressing persistent risks is needed to reduce the county's exposure to high cost claims. This requires a countywide policy of departmental risk analysis with strategies to mitigate future risks and associated costs. This approach to risk management is typically referred to as enterprise risk management.
The office of risk management, in consultation with the county executive, has developed a work plan for an integrated risk management framework for the county, allowing the county to realize the benefits of enterprise risk management in reducing future claims.
BE IT ORDAINED BY THE COUNCIL OF KING COUNTY:
SECTION 1. Ordinance 3581, Section 2, as amended, and K.C.C. 2.21.020 are each hereby amended to read as follows:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise((.)):
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