Portland’s Risk Management Division spends almost $16 million each year helping City bureaus reduce injuries and loss, and managing and paying claims against the City. We reviewed how Risk Management coordinates its overall loss prevention programs and how it manages general liability claims against the City after an incident occurs.
Overall loss prevention activities need a proactive, Citywide focus. Risk Management does not follow City Code and policy requirements for benchmarking, information sharing, and annual reporting, resulting in a lack of communication to City Council and bureaus about loss prevention activities and loss trends. Without a Citywide focus, City Council and bureaus may not have the information they need to budget for and prioritize risks.
Risk Management usually manages liability claims against the City well, but its approach is inconsistent. Risk Management implemented a new information system, and needs to make better use of the system’s capabilities to ensure claims are resolved consistently and on time.
Managing and controlling risk is a Citywide challenge that involves every level from City Council to individual workers. We recommend Risk Management work with City bureaus to establish a proactive, Citywide approach to loss prevention, and update its claims management procedures.