III. PHA RISK MANAGEMENT PHA leadership recognizes the value of its risk management functions, and this strong support remains a strategic objective. The result is a comprehensive program, recognized throughout the industry for its innovation and efficacy. Its pro‐active Risk Management Department, whose guidance is sought daily, monitors/measures program components for effectiveness, and seeks continuous improvement to the Program. Risk Management Overview: Governing board adopted a written Risk Management Program Policy, to include self‐insurance and employee/officer indemnification Broker compensation on flat fee basis only P&C insurance program o Instituted self‐insurance for workers’ compensation and liability exposures Manage a self‐insured Loss Fund at 100% of actuarially determined levels o Property ‐$184 million TIV is being evaluated and subject to reassessment in 2024. Coverage is provided through a layered program of Domestic and alien, London based carriers. Tenants are contractually required to maintain property insurance coverage for any leased buildings, coverage is verified on an annual basis. Currently approximately 60 buildings valued at $103 Million o Inland Marine – $295 Million TIV (30 wharf cranes with an insured value ranging from $5‐ $35M/ea.) Cost Allocation Program with internal funding of Risk Management Program Inclusion and management of a third‐party claims administrator Commercial loss adjusting firm jointly selected by PHA and underwriters Litigation Management Program Subrogation Program Compliance and Information Technology Training, to include both cyber risk assessment and awareness training Implemented performance measures/metrics to evaluate program improvements for strategic initiatives
