The 2009-11 Operating Budget (ESHB 1244) directed the Joint Legislative Audit and Review Committee to examine the state’s risk management practices. JLARC reviewed Washington’s tort liability laws and how they compare to those of other states. Additionally, JLARC examined the risk management practices of the Office of Financial Management’s Risk Management Division and the three agencies with the highest tort and defense costs payouts in the past seven years; the Departments of Transportation, Corrections and Social and Health Services. JLARC concluded that all of the agencies were employing some risk management best practices. The report contains recommendations to the Departments of Corrections and Social and Health Services to strengthen their practices.