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Contents

 

About This FAM

Responsible Agency: Department of Finance
Issued: Aug 2005
Last Updated: Aug 2005

1. Introduction

The Department of Finance, Risk Management and Insurance section is responsible for the protection of Government assets, programs and operations from the risk of loss.

This is accomplished in consultation with the Office of the Fire Marshal, other regulatory and inspection authorities and client departments, using risk management techniques including identification of risk exposures, evaluation and assessment of risks, loss prevention, risk control and risk financing including the purchase of insurance.

 

2. Policy

The purpose of this directive is to advise departments of their responsibilities in the risk management and insurance process.

Deputy Ministers shall ensure that all departmental staff comply with the provisions of this directive.

 

3. Directives

3.1

Identification of Risk Exposures

Departments shall participate in the Risk Exposure Identification process and provide information required by Risk Management and Insurance, Department of Finance to identify risks associated with government assets, programs, services and operations.
3.2

Risk Evaluation and Assessment

Departments shall participate in the Risk Evaluation and Assessment process and provide information required by the Risk Management and Insurance, Department of Finance.
3.3

Loss Prevention and Risk Control

Departments shall:

  1. facilitate access to public property for Loss Prevention Inspections as required by Risk Management and Insurance, Department of Finance;
  2. immediately comply with corrective action that is required after consultation with the appropriate authority where an immediate danger to life or property exists.
  3. respond in writing to all other recommended corrective actions to address indentified risks and or deficiencies within the prescribed time;
  4. provide information required by Risk Management and Insurance, Department of Finance and participate in the identification of hazards associated with government assets, programs and operation;
  5. participate in identifying strategies to reduce risk and mitigate losses; and,
  6. implement the strategies as required or requested.
3.4

Appeals

Departments may appeal actions required to correct risks and/or deficiencies identified by Risk Management and Insurance, Department of Finance. Appeals shall be made through the Deputy Minister of the Department to the Deputy Minister, Department of Finance within 10 days after the report of identified risks or deficiencies is made.

Where no immediate danger to life or property exists, the Manager, Risk Management and Insurance shall, after consultation with appropriate authorities, report to the Deputy Minister of Finance a review of any corrective action required, recommended and undertaken in view of the concerns expressed by the appellant Department, and in view of mitigating losses, risk and insurance. If corrective measures have not been adequately met, the Minister of Finance shall address the matter with the Minister of the Department of concern.
3.5 Risk Management and Insurance
3.5.1 Departments shall cooperate with Risk Management and Insurance, Department of Finance and respond to requests for information in a timely manner and in accordance with this directive.
3.5.2 Only the Minister or the Deputy Minister of the Department of Finance (or a person delegated the authority in accordance with FAM Policy 1801 - Delegation of Powers and Duties) shall enter into a Contract of Insurance.
3.5.3 Risk Management and Insurance, Department of Finance will investigate, negotiate and settle all claims regardless of policy deductible amounts.
3.5.4 The Manager, Risk Management and Insurance, Department of Finance shall act immediately to comply with the terms and conditions of the Government Insurance Contract, including, if required, informing the Insurers of the situation or claim when s/he is informed of a situation, incident, claim or potential claim under this directive. The Manager shall also inform the Deputy Minister of the department involved of the relevant rights and responsibilities of the parties to the Insurance Contract.
3.5.5 Departments shall cooperate with Risk Management and Insurance, Department of Finance in the investigation, negotiation and settlement of claims or potential claims.
3.6 Reporting
3.6.1 Departments shall report hazards or situations (or any which are suspected or believed) that expose the government to a risk or loss to Risk Management and Insurance, Department of Finance in writing immediately.
3.6.2 Departments shall report all incidents that could give rise to a claim involving any outside party to Risk Management and Insurance, Department of Finance in accordance with the provisions of this directive.
3.6.3 Departments shall report any suspected or believed incidents which could expose the government to a claim involving any outside party for property damage, bodily injury, personal injury or environmental damage to Risk Management and Insurance, Department of Finance in writing immediately.
3.6.4 Deputy Ministers shall ensure that all department employees are advised of their obligation to report incidents that may give rise to a claim involving any outside party and hazards that expose the government to risk or loss.
3.6.5 Departments shall provide any additional reporting requirements that exist under the Indemnification Policy (Section 1109) of the Human Resource Manual.