The University of Alaska, Statewide Office of Risk Management, budgets a small amount of its total cost of risk for loss prevention. The funds are budgeted by each major line of coverage. These amounts are further broken down by campus based on the campus exposure allocation factor. The exposure allocation factor is the ratio of each campus combined exposure base and loss history to the system total. Campus LP budgets are developed in conjunction with the Risk Management Allocation.
Limited funds are available for loss prevention projects.
Funds remaining at the end of the fiscal year roll back into the statewide risk management liability account. Statewide risk management is responsible for tracking loss prevention expenditures.