1. Your Medical Group wants to expand by starting a new venture, owning and operating a pharmacy. In order to increase the success, you have been asked to perform an enterprise risk assessment that includes reputational risk. Give three examples of how starting a new venture might have risk events that could lead to repercussions that would negatively impact the organizations reputation and three examples where it might be enhanced, creating opportunity.

2. Explain how improvement is measured with KPIs and give one example related to Human Capital and how this KPI might help you improve your organization.

3. In the UC example, the ERM Program gives weight to both data-driven activities and to culture-changing activities. Give two examples of each and then your own opinion regarding which activities you believe to be most effective in implementing an ERM program.

4. What do you think is the difference between traditional risk management and enterprise risk management?

5. From the UC example, identify what aspects of their program were "carrots" and which ones were "sticks." From your own experience describe which one you think works best in creating lasting change.


Grace Crickette joined AAA Northern California, Nevada, and Utah (NCNU) in May 2013 as the Senior Vice President and Chief Risk and Compliance Officer. She was the former Chief Risk Officer at the University of California. In her current position, she is charged with implementing enterprise risk management (ERM) with her legal, compliance, risk management, and internal audit team. The Risk Services team provides internal audit and consultation, legal consultation, quality assurance and compliance, risk financing and captive solutions, crisis and consequence management, and loss prevention and loss control services. The Risk Services team's ERM vision is to support AAA's Membership Promise: "We will keep you safe and secure – We will offer you the right product at the right time – We will provide you helpful and knowledgeable service – We will reward your loyalty – One Member, One AAA."

Prior to coming to AAA NCNU, Grace served as the University of California's Chief Risk Officer. Major initiatives for the Risk Services department included reducing the cost of risk, implementing system and local safety programs, improving claims management systems, developing risk financing strategies, and implementing enterprise risk management (ERM), and emergency management and business continuity planning throughout the university.

Grace joined the University of California in December 2004 after 13 years as a vice president and officer in audit, insurance, safety, and human resources capacities for the equipment and construction industry. She graduated with distinction from the University of Redlands with a bachelor's degree in business administration, and holds a variety of professional designations in the areas of claims, safety, audit, and human resources, including Associate in Risk Management and Senior Professional in Human Resources.

In 2008, Grace received the Risk Innovator Award for innovation and excellence in risk management in higher education. She received the Information Security Executive (ISE) of the Year West Award 2011 and National Award 2011 for Higher Education/Non Profit Sector for innovative problem solving related to a collaborative partnership with the University of California's chief information officer and other information technology (IT) professionals, insurance brokers, and underwriters for securing previously unavailable and much-needed cyber coverage and at the same time developing a program that will drive improvement and best practices into the future. She also received the ISE award of the decade for Higher Education/Non Profit Sector for her overall commitment to IT security. She was chosen in 2011 as one of Business Insurance's Women to Watch, an annual feature spotlighting 25 women who are doing outstanding work in commercial insurance, reinsurance, risk management, employee benefits, and related fields, such as law and consulting. She was also selected by Business Insurance magazine for its 2011 Risk Management Honor Roll. Also in 2011, Treasury & Risk magazine named her one of the "100 Most Influential People in Finance." She has consulted with numerous public and private entities on the implementation of ERM, including Harvard University and SingHealth, Singapore's largest health care group.

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