In spite of its reputation as an A+ educational institution, Penn State failed to communicate and execute the most rudimentary risk-management protocols in the Jerry Sandusky sex abuse scandal, risk-management experts say.
With a timeline dating back to 1994, when Penn State defensive line coach Sandusky launched The Second Mile nonprofit program for at-risk boys, multiple incidents of alleged sexual abuse went unreported to the appropriate authorities, resulting in a situation where liability escalated from possibly damaging to absolutely devastating—with the university and even third parties now potentially liable.
"It's shocking that somehow the real values professed by the institution—which, after all, is in the business of [helping]kids—weren't followed," says Kevin Ribble, executive vice president of management-liability specialists Edgewater Holdings Ltd. and president of Comply America Inc.
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