Transcript Risk Management - Pittsburgh Human Resources Association

Module 6: Risk Management
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7% SPHR
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6-1
Risk & Risk Management
Risk – possibility of positive opportunities and
outcomes as well as negative.
Risk Management – is the identification,
evaluation and control of risk that may affect an
organization.
– Is a complex enterprise-wide concern that has
ramifications for all areas discussed in all SRHM
Modules
6-2
Categories of Operational Risk
•
•
•
•
•
Personnel risk (fraud and error)
Physical assets (business environments)
Technology (viruses)
Relationships (lawsuits)
External/regulatory (external fraud)
HR role: Examine HR policies to prevent
or mitigate loss and ensure business
continuity.
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Risk Management
Integrated effort of any organization, with
executive level support, supports strategic
goals and growth of the organization.
HR should assess risk and create policies.
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Risk Management Techniques
Assess risk.
Evaluate/
modify systems.
Develop
systems.
Implement
programs.
Monitor
efforts.
Tools: Risk management software systems and
risk management scorecard
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Continuity and Recovery
Business continuity planning
• Identifies potential threats and impacts.
• Plans for disruption, interruption, or loss of
business functions.
Disaster recovery planning
• A set of guidelines and procedures to be
used by an organization for the recovery of
business operations due to disasters such as
earthquakes, fires, terrorism, or epidemics.
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Insurance That Mitigates Risk
• Employment practices liability insurance (EPLI)
– Protects against claims of discrimination, wrongful
termination, and sexual harassment.
• Professional liability insurance
– Protects directors, officers, employees, and the
organization against claims of negligence in the
performance of professional services.
• Worker’s compensation insurance
– Protects workers in case of work-related injury or
disease.
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Risk Management Legislation: OSHA
Employee rights
Employees must comply with OSHA standards and have a
right to:
• Demand safety and health
• Request action from
on the job.
the employer to correct
hazards or violations.
• Request inspections.
• File a discrimination
• Have an authorized
complaint.
representative accompany
an inspection.
• Receive training.
• File a complaint.
• Be informed of workplace
hazards.
6-8
Risk Management Legislation: OSHA
Employer responsibilities
Keep employees informed.
Keep employees safe.
• Display OSHA poster.
• Provide copies of act and
rules/regulations.
• Post OSHA citations.
• Notify employees of hazards.
• Maintain accurate records.
• Permit authorized employee
representation during an
OSHA inspection.
• Correct violations.
• Allow employees to refuse
abnormally dangerous work.
• Provide personal protective
equipment.
• Provide medical surveillance.
• Provide training.
• Enforce rules and regulations.
6-9
Which of the following is an example of an
employer’s rights under OSHA?
A. To apply to OSHA for a temporary or permanent
variance from a standard
B. To restrict inspectors and employee representatives
from all areas that contain confidential information,
processes, or equipment
C. To refrain from enforcing rules that cause economic
hardship for the organization
D. To review and rule on employee protests regarding
unsafe working conditions
Answer: A
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OSHA Regulatory Standards
• Emergency Exit
Procedures
• Occupational Noise
Exposure
• Machine Guarding
• Hazard Communication
• Control of Hazardous
Energy—Lockout/
Tagout
• Bloodborne Pathogens
• Confined Space Entry
• Personal Protective
Equipment
• Process Safety
Management
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Injury and Illness Definitions
• Occupational injury: Injury that results
from a work-related accident or exposure
involving a single incident.
• Occupational illness: Medical condition or
disorder caused by exposure to
environmental factors associated with
employment.
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Recording Criteria
For both work-related illnesses and injuries:
• Death
• Days away from work
• Restricted work or transfer to another job
• Loss of consciousness
• Diagnosis by a licensed health-care
professional
• Medical treatment beyond first aid
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OSHA Forms
Form 300 – Log of Work-Related Injuries & Illnesses
 keep separate logs for each location
Form 300A – Summary of Work-Related Injuries & Illnesses
 posted at the end of the year for 3 months
Form 301 – Injury and Illness Incident Report
Filled out within 7 days of learning of an accident
Form must be kept for five years
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An employer learns that a worker has
fractured an arm on the job. Within what
time frame must the employer complete
OSHA Form 300?
A.
B.
C.
D.
8 hours
24 hours
3 calendar days
7 calendar days
Answer: D
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OSHA Inspection Priorities
• Imminent danger situations
2.
• Fatalities and catastrophes
3.
• Complaints
4.
• Referrals
5.
• Follow-ups
6.
• Planned/programmed inspections
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OSHA Violations
Willful
Serious
Other-thanserious
Repeat
De minimis
• Intentional
• Likely to cause death or serious
injury
• Not likely to cause death or serious
injury
• Repeat of an earlier violation
• No direct or immediate relationship
to job safety or health
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Drug-Free Workplace Act
Federal contractors with contracts of
$100,000 or more and recipients of grants
from federal government must:
• Develop a policy that maintains a drugfree workplace.
• Specify penalties for policy violations.
• Provide a copy of the policy to
employees.
• Establish a drug-awareness program.
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Legislation Summary
Legislation
Relevance to Risk Management
Health
and Safety
OSH Act

Mine Safety and Health
Act

Drug-Free Workplace Act

Industrial
Security
USA PATRIOT Act

Homeland Security Act

Workplace
Privacy

GINA
ADA

FLSA

6-19
Legislation Summary
Legislation
Relevance to Risk Management
Health
and Safety
OSH Act

Mine Safety and Health
Act

Drug-Free Workplace Act

Industrial
Security
USA PATRIOT Act

Homeland Security Act

Workplace
Privacy

GINA
ADA

FLSA

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Safety Program Priorities
• Injuries are
prevented and
hazards are
minimized.
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Safety Hierarchy
Priority 1
• Eliminate hazard.
Priority 2
• Use safeguards.
Priority 3
• Train and instruct.
Priority 4
• Provide personal
protection.
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Safety Responsibilities
HR
 Gain management
support.
 Assist in coordinating
safety programs.
 Develop reporting
system.
 Provide expertise on
accident research and
prevention.
 Train line managers.
Line Management




Show support of safety.
Monitor employees.
Recognize hazards.
Report accidents and
conduct follow-up
actions.
 Follow up with
employees.
 ACCEPT ULTIMATE
RESPONSIBILITY FOR
SAFETY.
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Safety Committees
• Encourage safety awareness.
• Motivate employees.
• Identify and correct hazards.
Ensure that the safety committee does not
become an employer-dominated labor
organization—a violation of the NLRA.
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Influences on Accidents and
Incidents
Internal
Influences
External
Influences
Human
Factors
• Nature of task
• Work group
• Management
goals
• Organizational
style
• Leader’s style
and experience
• Employee
orientation
• Machinery
• Economic and
geographic
conditions
• Labor force mix
• Governmental
regulations
• Attitudes,
abilities,
motivation, and
preferences
• Skills
• Distractions
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Classifying Incidents
•
Failing to use protective
equipment
• Improper dress or use of
equipment
• Performing unauthorized
procedures
Unsafe acts
•
•
•
•
•
Defective equipment
Noise, heat, dust, or
vibration
Poor ventilation
Improper lighting
Unsafe floor surfaces
Unsafe conditions
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Accident Prevention
• Design work sites and flow to manage risk.
• Assign safety specialists and line managers
to committees.
• Analyze why accidents happen and have
outside experts inspect working conditions.
• Provide updated job and safety training; test
and document results.
• Provide safety rewards and recognition.
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Ergonomics Programs
Include:
•
•
•
•
•
•
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Ergonomics team
Work-site analysis
Job redesign
Surveys/monitoring/feedback
Training
On-site exercise programs
Budget
Reduce:
•
•
•
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Musculoskeletal disorders
Computer vision syndrome
Lower back strains
Sick building syndrome
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Return-to-work programs require that
injured employees
A. return to less-strenuous jobs on a permanent basis.
B. refrain from taking FMLA leave until they can return
to work.
C. stay on disability until they can perform all the
duties of their current jobs.
D. perform jobs that accommodate their current
limitations.
Answer: D
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Health Hazards
Infectious diseases
• Current illnesses
–
–
–
–
Hepatitis B virus
Hepatitis C virus
HIV/AIDS
Tuberculosis
• Future pandemics
– Disease that is new
to the population
– Human infection that
causes serious
illness
– Agent that spreads
easily
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Health Hazards
Environmental factors
• Physical
– Heat, noise, vibration, air conditioning, radiation,
ventilation, smoking, sanitary conditions, drinking
water, workplace design
• Chemical
– Dust, fumes, gases, toxic materials and chemicals,
carcinogens, smoke
• Biological
– Bacteria, fungi, insects
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Employee Assistance Programs
Provide counseling for:
• Alcohol and drug
abuse
• Emotional
• Family and marital
• Legal
• Career
• Workplace violence
• Financial
EAP options:
• In-house
• Outside contractors
• Consortium
• Affiliate
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Employee Wellness Programs
Nutrition
and weight
control
Smoking
cessation
Stress
reduction
Wellness
and
fitness
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A written policy on substance abuse
benefits the organization because
A. it’s a deterrent to absenteeism and tardiness.
B. supervisors are more willing to confront
employees with impaired performance.
C. it fulfills compliance with state and local laws
and ordinances.
D. top management does not have to deal with
issues related to drug abuse.
Answer: B
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Drug Testing Categories
Preemployment
Reasonable
suspicion
and for cause
Post-accident
Post-treatment
Random
Periodic
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Drug Intervention Strategies
Constructive
confrontation
• Focuses on job
performance
Counseling
• Focuses on the
cause of the
problem
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Security Measures
• Security guards
• Preventive audits
• Identification and external
control systems
— Fingerprints, magnetic
cards
• Structural barriers
— Gates, fences
• Security hardware
— Alarms, sensors
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Fraud Control Practices
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•
•
•
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Inventory counts
Fraud hotlines
Sound auditing procedures
Video surveillance
Dollar-limit authority
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Risk Analysis
Vulnerability = Degree of probability that loss
will occur + Severity of impact
Probability
• Virtually certain
• Highly probable
• Moderately
probable
• Improbable
Severity
• Fatal
• Very serious
• Moderately
serious
• Negligible
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Emergency Response Plan
Guidelines
•
•
•
•
•
•
•
Involve senior management.
Create a team.
Set priorities.
Identify resources.
Communicate the plan.
Keep the plan up-to-date.
Test the plan.
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Causes of Workplace Violence
Violence = Stress + Inappropriate responses +
Opportunity
• Reduce stress by giving employees a vehicle
to express concerns.
• Reduce inappropriate responses by checking
employee references and monitoring behavior.
• Reduce opportunity by maintaining a zero
tolerance policy for weapons and violence.
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Workplace Violence Prevention/
Intervention Program Elements
Identify and involve
stakeholders.
Conduct needs
assessment.
Monitor and
evaluate
program and
response.
Develop prevention and
intervention program.
Implement program.
Invoke incident
management plan.
6-42
A company is located in a multi-tenant building in a suburban area, off an
interstate highway lined with shopping malls and fast-food restaurants. There is
ample parking in an unsecured lot. There is a desk at the building’s one unlocked
public entrance to screen visitors, but the door is locked at night and there is no
security guard at the desk. The company operates a sales office, a service
center, and a 24-hour call center in this facility. There is no record of employee
conflicts and few complaints against supervisors. What is the company’s greatest
vulnerability at this facility?
A. Workplace stress
B. Likelihood of weapons possession in the workplace
C. Parking lot at night
D. Unsecured alternative entrances at night
Answer: C
Evening and night shifts will be using the unsecured parking lot at night in an area that is likely to
have significant traffic at all hours. This is a vulnerability for employees on those shifts who could be
robbed or assaulted on their way into or from work. A range of actions could be taken to address this
risk, from improving lighting to contracting with security services during shift turnover hours.
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Government Responses to Terrorism
• USA PATRIOT Act
• Department of Homeland Security
• National Response Framework
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Protection of Proprietary Information
• Recognize insider/outsider threats.
• Identify proprietary information.
• Use confidentiality and nondisclosure agreements.
• Secure trade secrets.
• Confine intellectual knowledge on “need-to-know” basis.
• Provide training to employees about the organization’s
plan.
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Technology Security Risks
• Unauthorized access to data
• Virus downloads
• Social engineering
Organizational policies for accessing and
using technology in the workplace help to
mitigate security risks.
6-46