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									VSP’s Risk
Management Process
       Elements of
VSP’s Risk Management Process
 Internal Environment:
 • One Clear Vision ethical values policy and code
   of conduct with annual recommitment
 • Open door policy
 • Hiring practices to insure competence of staff,
   including background checks, drug testing and
   credit checks
       Elements of
VSP’s Risk Management Process
Objective Setting:
• Annual goals provided by the Board of Directors to
  the CEO
• Strategic plan with high level goals aligned with the
  company’s mission and vision
• Communication of company objectives to personnel
  at all levels, insuring requisite understanding to each
  employee’s sphere of influence (“Meeting in a Box”)
       Elements of
VSP’s Risk Management Process
Event Identification:
• Identification and reporting of security and safety
  incidents to executive team
• Mitigate potential for natural disasters through
  insurance coverage (high flood risk in Sacramento)
• Determination of changing market demographics
• Evaluation of political threats or opportunities, such
  as national health insurance
       Elements of
VSP’s Risk Management Process
Risk Assessment:
• Strategic planning review of strengths,
  weaknesses, opportunities and threats (SWOT)
• Benchmarking against competitors and like
  industries and reporting to Board of Directors
• Periodic reviews of business continuity plans,
  with regular testing at offsite vendor location
       Elements of
VSP’s Risk Management Process
Risk Response:
• Weekly executive meetings to share information and
  to determine appropriate responses to situations that
  involve risk
• Budget Oversight Committee review and approval of
  company budgets and major capital expenditures, as
  well as mid-year revisions
• Redundant telephone, IVR and eClaim equipment in
  Sacramento and Columbus
       Elements of
VSP’s Risk Management Process
Control Activities:
• Use of banks lock boxes to collect client premium
• Cash controls, including positive pay, over check
• Regular meetings of multi-divisional Internal
  Control Forum
• Steering committee oversight over major
  information technology projects
       Elements of
VSP’s Risk Management Process
Information and Communication:
• Quarterly meetings of senior management and
  Board leadership to review progress of plans
• Semi-annual all-employee meetings with CEO
• Quarterly ABM benchmark reporting for all
  administrative and ophthalmic materials activities
• Monthly financial statement reporting and
  analysis within five working days
       Elements of
VSP’s Risk Management Process
• Employee focus group meetings each quarter with
  CEO & VP of Human Resources
• External hotline phone for reporting illegal or
  improper acts anonymously (whistleblower
• Routine surveying of the satisfaction levels of
  clients, patients, doctors and employees (bonus

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