A Study On Campus Risk Management

It has been proved by history that "Long-term goals base on education" and "Acountry’s strength comes with its powerful education capacity". But the economictheories implying in these two basic laws were not found by economists until thelatter half of last century. Both Human Capital Theory represented by Theodore W.Schultz and Gary S.Becker and Endogenous Growth Theory represented by PaulM.Romer and Robert E.Lucas Jr. support the point of view that education plays animportant role in effect on economic development.Capital is divided into tow part as physical capital and human capital in HumanCapital Theory. The Human Capital Theory, which considers human capital is moreimportant than physical capital, emphasizes the significance of education. Humancapital is further divided into general human capital and specialized human capital inEndogenous Growth Theory. As the Endogenous Growth Theory hold that specializedhuman capital depends on the level of general human capital that can obtain fromschool education. Thus, the significance of education is further emphasized.However, the traditional concepts value the normal output of education more,which ignore that the risk have impact on the process of normal output, the impactmay even be an interruption. The risks of the Chinese campus are not optimistic. Ithappens occasionally that the risk breaks the output of education, sometimes thedamage is more serious. We should not forget that thousands of students’ fresh lifewas taken away by Wenchuan earthquake. Similarly, the tragedy of Deadly school carshould not be forgotten.If emphasizing education is beneficial to the high-quality output, so pay attentionto risk are conducive to stability and continuity of output. With the amalgamation ofrisk management field and other research fields, new concepts, techniques, andpatterns in risk management field are emerging, which will support the intensivestudy of risk management of campus. Risk management of campus refers to people’s active behavior oncomprehension of the campus risk, and command and conduct of the risk as well.Traditional risk management processes including risk management plan, riskidentification, risk measurement, risk assessment, specific methods selection,effectiveness evaluation, etc. With the development and amalgamation of riskmanagement theory, the basic elements of risk management reduced to riskidentification, risk assessment and conduction, which also apply to the riskmanagement of campus.Risk identification mainly includes the investigation of the campus risk and itsdevelopment trend. According to the traditional definition of risk, the campus risklimited the location of risk. But from the point of risk society, the evaluation ofcampus risk should not restrict in the campus. campus risk include personnel risks,property risks and liability risks, etc. In the above risks, the main risks in campus arethe personal risks of students and the liability risks of the school management. Withthe changes both in the external environment of society and the internal environmentof campus, affected by the growth of emergency and accident costs, awareness ofrisks and lack of countermeasure, campus risk present to be more complex. The coreissue of the campus risk is that primary and secondary schools are safetyaccident-prone. on campus, the risks which has mentioned have specific features inthe aspects such as area of the accident, time, place, phase of studying and categories.Assessment of campus risk mainly refers to the assessment of the frequencies ofrisks and the degree of loss. RAC method is the primary method to assess the campusrisk, by investigating these two factors-frequencies of risks and the degree ofloss-which have influence on campus risk, the risk level of a single risk can bedetermined. Risk assessment of campus mainly includes elements such as riskassessment of fire and the explosion caused by fire, risk assessment management, riskassessment of mass outbreak case and individual case, etc.Risk management of campus mainly refers to how to response to the campus riskwith rational risk management techniques. Campus risk management techniquesinclude two main categories: controlling type and financing type. Controlling type of risk management techniques include risk avoidance, prevention and suppression,while financing type of risk management techniques mainly include the campus ofrisk retention and risk transfer.Risk pre warning mechanism is common in today’s risk management research,and it can be important components of risk management on campus. Establishing riskmanagement risk pre warning mechanism will not only be favorable to the changefrom "passive" management to the "active" management, and also conducive to riskmanagement of campus to change from "single" management to "comprehensive"management that management technology is "integratedly exerted" and the subject ofrisk management tends to be "multiple".Campus risk pre warning mechanisms mainly consists of two parts: the systemguarantee and the trigger mechanism. The former one is campus risk managementdiscipline that is pursuant to related laws and regulations formulated by thegovernment, while the key point of the latter one is triggering threshold estimation,involving single-risk triggering threshold estimation and overall-risk triggeringthreshold estimation.We can consider turning campus risk management to a new "Trinity" mode thatcombines the security prevention, emergency management, and risk transfer. Thecurrent campus risk management exist many problems in prevention such as lackingof financial support, prevention awareness, weak sense of risk awareness and so forth.There are also many problems can be found in emergency processing, such as weakimplementation of emergency measures, useless of legal methods, and regionaldifferences of the handling results,etc. Problems can be seen from risk transfer as wellthat insurance products do not effectively supply for the effective demand.In terms of prevention, we need to continuously improve prevention system andoptimize prevention mechanism, also we need to continue to announce someimportant prevention regulations that are similar to School Bus Safety Regulations. Inthe aspect of emergency management, we need to continue to improve both theemergency preplan systems, and emergency management systems, and emergencymanagement running mechanism and emergency management legal system represented by the legal system as a "Trinity" system. What’s more, it also require theestablishment of emergency management program for the public emergencies such assafety accidents, emergencies, natural disasters that happen in different campus.From the point of risk transfer, in addition to the non-insurance transfer methods suchas government financial support and social donations, we need to focus on the use ofinsurance transfer means.Insurance for campus is a tool of market for campus risk management, whichcan effectively transfer insurable campus risk. The two core kinds of insurance forcampus is casualty insurance for students and liability insurance for schools.Insurance for campus play a leading role in campus risk transfer, mostly for theparticularities of the campus risk. Compared with other kinds of insurance, campusinsurance has a non-commercial character and more emphasis on the function ofsocial management. The non-commercial performance of insurance for campus: thefirst is keeping "meager profit", the second is preventing more disaster-prevention andloss-prevention services. Insurance for campus not only require protection of the lawsand regulations but also the financial help of the government, and it can become avanguard for the strategic transformation of insurance company from the insuranceservice provider to the risk management service provider.The safeguard measures of insurance for campus includes two broad categories:technology measures and policy measures. The former one mainly include a perfectcampus risk management services network and a systemic campus risk managementdatabase, while the latter mainly consists of institutional guarantee represented bylaws and regulations and funding guarantee subject to financial subsidies.In terms of market subjects, insurance for campus not only require insurancecompanies, but also insurance brokerage firm which can be able to provideprofessional risk management services. In terms of product development, insurancefor campus is require to transfer its products from a single type to a comprehensivetype. In terms of marketing strategy, insurance for campus need to change itscompetition way from price oriented to service oriented.Shenzhen is one of the cities which successfully use this market tool of campus risk management. In2005, the promulgation of Shenzhen School Safety ManagementOrdinance marks campus risk management enter into the stage that "securitymanagement in advance and emergency rescue and investigation afterwards". OnApril26,2006, funded by the Shenzhen municipal government, and underwritten bythe PICC Property and Casualty Company Limited Shenzhen Branch, school liabilityinsurance officially took effect. In2010, the enactment of the detailed rules of theShenzhen School Safety Management Ordinance stressed the importance of risktransfer methods, strengthened safety education in security prevention, paid moreattention to the importance of emergency management. In the same year, theShenzhen municipal government began to support the casualty insurance for studentsbasing on the full implementation of school liability insurance. The parallel of "Twokinds of insurances" reached the result that the insurance coverage of these two kindsof insurance is complementary, further improve the risk management system oncampus, and effectively implement the running target that "low accident rate, widecoverage and high guarantee".In fact, new models for campus risk management, so called the "trinity", canfurther optimize by ways such as establishing a sound risk management network tocomplete the construction of prevention, improving rational emergency managementmode to enhance the efficiency of emergency, and strengthening the introduction ofinsurance mechanisms for campus to enhance risk transfer effects. Insurancemechanisms can further enhance its role under the new mode. It can help to build uprisk pre warning mechanism to improve safety and prevention and upgrade theefficiency of emergency. To sum up, once the trying of "trinity" mode can besuccessful, campus risk management in China will has a brand-new look.