LossCAP: What it is and What it Does

The Authority’s LossCAP program, which is the most visible interface between the Authority and its members, is the framework for delivering needed risk management resources to members. In response to member satisfaction survey findings in 2004, LossCAP was founded on the principle of a partnership; one that exists between the Authority and each member. That partnership only succeeds when both partners understand the role each must play in working to mitigate exposures that lead to losses.

Such an opportunity to partnership was absent in the relationship with members before LossCAP was put in place. For nearly two decades, members were left largely on their own to act on recommendations made by the Authority. The 2004 survey revealed that members needed assistance in developing and implementing risk management programs, policies, and procedures.

In response, the Authority restructured the way it operated, and outsourced the venerable risk management evaluation to a contractor that would act as a strategic partner. In addition, the Authority assembled key resources in order to better assist members, including subject matter experts, employment experts, and contract review.

Equipped with information collected in the risk management evaluation, the Authority’s risk consultants are now available to work directly with members in developing action plans that are designed to identify a work plan that, through completion of the action items, brings about improvement in how risks are managed.

At the time of this printing, over 75% of members have met for their LossCAP presentation. During the presentation, staff from the Authority convenes with key individuals from the member, including the member’s senior management. In the weeks following the presentation, the Authority works with the member to develop a two-year work plan that captures target completion dates and assigns staff responsible for completing each item.

Given that the program is nearly three years running, how are members doing? On average, action plans for members undertaking work in 2008 are 70% complete; for members with work beginning in 2009, action plans are now 44% complete; and, for those with presentations in 2010, action plans are approximately 14% complete.

So what does this mean? First and foremost, the Authority is very conscious that numerous members are facing difficult times, including reductions in staffing, furloughs, budget cut backs, and other competing factors. It also means that members continue to need help from the Authority, and that they can’t go it alone.

Interestingly, for those members that have completed their LossCAP action plans, and for the host that are nearing completion, one common factor emerges; that is, successful members have the needed support from senior management. Without exception, senior management is pushing down through the organizational culture an important message: managing risk is a critical management function for organizational success.

Whether or not your agency is working on a LossCAP action plan, the Authority is poised to assist. Perhaps your agency is conducting analysis on a new program, activity, or development project. Or, maybe you need a contract to be reviewed or advice on types and limits of insurance coverage for those providing services to your agency. Maybe you need review of documents that will help determine if insurance requirements have been satisfied. If your agency is considering taking adverse employment action, our employment advice program is ready to help in instances where early intervention just might mitigate a claim.

The California Joint Powers Insurance Authority’s mission is “Providing Innovative Risk Management Solutions for Our Public Agency Partners.” The LossCAP Program is the Authority’s strategic effort to carry out that mission. We are your experts in managing risk, and our staff is ready to help you across the risk management spectrum.