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Risk Finance
RM Roles in Finance
  • Administers Insurance Fund.
  • Issues insurance certificates, a document to prove state agency coverages, as per contract requirement.
  • Collects underwriting information from state agencies.
  • Designs special coverages.
  • Administers purchase of commercial insurance.
  • Determines budgeted and actual risk charges.  View Your Agency Risk Charges   

Self-insurance is generally used by RM to cover risk since it normally has lower cost.  It also motivates a state agency attitude to prevent and reduce the cost of losses.  Self-insurance is most practical when losses are frequent enough to be predictable.  RM chooses to self-insure or retain the highest predictable level of losses.  However, RM buys coverage for unpredictable events which can be made predictable through reliable, economical premiums.

Allocation Goal
Allocation goal of risk charges is to relate them closely to agency losses and to respond to changes in those losses.  They attempt to account for losses where they occur and avoid unnecessary subsidy of one agency´s decisions and activities by another.  Risk charges try to avoid unnecessary budget disruptions and yet be adequate to pay for the cost of state´s losses that occur in the biennium.  Statewide biennial charges are determined by actuarial forecasts (based on past losses) plus RM administrative expenses and then adjusted by any Insurance Fund surplus or deficit.

Certificates of Coverage
Certificates of coverage are available from RM for your agency when you are asked to provide proof of insurance to another party.