Bill Text: NY A06689 | 2015-2016 | General Assembly | Introduced
Bill Title: Directs the office of general services to conduct a study relating to the feasibility and advisability of establishing an office of risk assessment and management, and/or a chief risk officer.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2016-01-06 - referred to governmental operations [A06689 Detail]
Download: New_York-2015-A06689-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
6689
2015-2016 Regular Sessions
I N A S S E M B L Y
March 30, 2015
___________
Introduced by M. of A. ENGLEBRIGHT, TITONE -- read once and referred to
the Committee on Governmental Operations
AN ACT to direct the office of general services to conduct a study to
examine, evaluate and make recommendations relating to the feasibility
and advisability of establishing an office of risk assessment and
management, and/or chief risk officers
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. The office of general services, in consultation with the
2 department of law, the department of audit and control, the state insur-
3 ance fund, the office of employee relations and the division of the
4 budget, shall conduct a study to examine, evaluate and make recommenda-
5 tions concerning the feasibility and advisability of establishing, with-
6 in the office of general services, an office of risk assessment and
7 management, and/or chief risk officers. The office of general services,
8 in conducting such study, should direct its attention to at least the
9 following:
10 (a) the suggested proposed powers of such office of risk assessment
11 and management, and/or chief risk officers, which may include, but not
12 be limited to, the power to:
13 (1) analyze the potential exposure of the state to liability and
14 financial loss arising from its acts and omissions, from the ownership,
15 control or use of its real and personal property, or the conduct or
16 actions of its employees or agents;
17 (2) establish and coordinate business continuity programs for essen-
18 tial state functions and services;
19 (3) implement risk management programs to manage the state's exposure
20 to risk in the most cost effective manner including, but not limited to,
21 programs to reduce the likelihood and potential cost of loss events, and
22 the purchase of insurance or other risk sharing arrangements where
23 appropriate; and
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07965-01-5
A. 6689 2
1 (4) coordinate and support the risk management programs of all state
2 agencies; and
3 (b) the appointment of a chief risk officer, who shall be appointed
4 and empowered to administer the proposed office of risk assessment and
5 management. With regard to such chief risk officer, the office of gener-
6 al services should consider:
7 (1) the process for the appointment of the chief risk officer;
8 (2) the compensation to be paid to the chief risk officer;
9 (3) the qualifications of the chief risk officer, which may include,
10 but not be limited to:
11 (A) an understanding of and the ability to apply the generally
12 accepted principles, standards and techniques utilized for the identifi-
13 cation, assessment and management of enterprise risk;
14 (B) possessing sufficient experience in identifying, assessing and
15 managing enterprise risk exposures that present the breadth and level of
16 complexity of issues that can reasonably be expected to be raised during
17 the course of state operations; and
18 (C) having acquired his or her qualifications, through appropriate
19 education and relevant risk management experience on behalf of a commer-
20 cial or governmental organization; and
21 (c) the fulfillment of the functions of the proposed office of risk
22 assessment and management, and/or chief risk officer by conducting a
23 preliminary examination and evaluation, in consultation with the comp-
24 troller, the attorney general, the temporary president of the senate and
25 the speaker of the assembly, of the kinds and scope of risk exposures
26 faced by the state. Such examination and evaluation may include, but not
27 be limited to:
28 (1) the practices and procedures of all state agencies, as they
29 pertain to, impact upon, cause or deter damage or loss to: physical
30 property owned or controlled by the state, or physical injuries
31 sustained by state employees, persons receiving services from the state
32 or members of the general public;
33 (2) the actions, claim settlements, and claim settlement processes
34 related to actions in the court of claims, and in federal and state
35 courts of competent jurisdiction as they relate to the disposition of
36 matters against the state;
37 (3) the essential operations and service functions of the state, and
38 the kinds of procedures that may be necessary to maintain or restore
39 such operations and functions to the required level following a catas-
40 trophe or emergency event;
41 (4) the potential future liabilities arising from existing or proposed
42 state operations or functions;
43 (5) a description on how to prepare an inventory of all real property
44 owned or leased, for a period of time of more than ten years, by all
45 state agencies, and to begin to ascertain how to assess past, present
46 and potential future liability exposures and the nature of those expo-
47 sures; and
48 (6) a description of the kinds of appropriate cost effective tech-
49 niques and programs needed to reduce the cost of the state's exposure to
50 liability and financial loss arising from its operations or the owner-
51 ship, control or use of real and personal property; and
52 (d) allowing any public benefit corporation, public authority or local
53 government to contract for the services of the proposed chief risk offi-
54 cer and the office of risk assessment and management in the event that
55 such public benefit corporation, public authority or local government is
56 without internal risk assessment and enterprise risk management
A. 6689 3
1 services, or wishes to supplement such internal services with the
2 services provided by the chief risk officer and the office.
3 S 2. In addition to the requirements of section one of this act, the
4 office of general services shall, with particular care, begin to exam-
5 ine, analyze and determine:
6 (a) an estimate of the financial benefits that could be realized by
7 establishing an office of risk assessment and management and/or a chief
8 risk officer, and the potential reduction in the state's liability expo-
9 sure;
10 (b) the financial costs and an estimate of the size of the workforce
11 necessary to establish the office of risk assessment and management
12 and/or a chief risk officer;
13 (c) the method or process by which the proposed office of risk assess-
14 ment and management could be established and the manner in which such
15 office's operations could be phased in over 5 years; and
16 (d) the method of financing the establishment and operations of the
17 office of risk assessment and management and/or a chief risk officer, in
18 as much as the initial costs of such office, or officer may not be
19 offset by cost savings and reduction in liability exposure until such
20 office or officer has been in existence for an extended period of time.
21 S 3. Within eighteen months of the effective date of this act, the
22 office of general services shall submit to the governor, the attorney
23 general, the state comptroller, the temporary president of the senate,
24 the speaker of the assembly, the minority leader of the senate and the
25 minority leader of the assembly, a report of its findings, conclusions
26 and recommendations, and shall submit with its report such legislative
27 proposals as it deems necessary to implement its recommendations.
28 S 4. This act shall take effect immediately.
