Risk Control and Mitigation: Human Resources - Part 1

What is risk avoidance?

A technique of the 5 types of risk control. It is... 1. Precludes or discontinues an activity to avoid the chance of loss, eliminating both positive and negative outcomes 2. Avoidance is a self‐supporting risk control technique that may Proactive or Passive 3. Avoidance may not totally control exposure to loss from past activities (e.g., discontinued products still in the marketplace or in the hands of consumers). 4. Avoidance may be difficult to sell to management - they may think that this is their business and they cant move away from that. If you practice avoidance than your need for loss prevention is gone.

How does the use of risk control relate to the reduction of cost of the business?

By focusing on Risk Control, you can reduce costs for 1. Insurance, Total Cost of Risk, etc. 2. Prevention measures generally cost less than paying for a loss. Fewer accidents equals fewer costs. Sometimes the cost to prevent the loss is cheaper than having the loss.

What is OSHA Employee Responsibility?

Each employee shall comply with occupational safety and health standards and all rules, regulations, and orders issued pursuant to this Act which are applicable to his own actions and conduct. Employees have to follow the rules/standards too. "If you are going to do this job, you are going to wear this PPE or follow this set of rules." If they bypass then then the employer may not be responsible.

What is the OSHA Employer's General Duty Clause?

Each employer shall furnish, to each of his employees, employment and a place of employment which are free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees. This is a broad umbrella when the specific standard is not there.

What is segregation/Separation/Duplication risk control?

one of the five techniques. It reduce overall severity through these categories 1. Segregation - an isolation of an exposure from other exposures, perils, or hazards, e.g., having a dedicated computer room 2. Separation - the spread of exposures or activities over several locations. Similar to duplication. 3. Duplication - the use of backups for critical systems or operations

What are the priorities during an OSHA inspection?

to investigate... • Imminent danger/catastrophes/fatalities • Worker complaints and referrals. This can come from employees • Targeted inspections, high injury/illness rates, severe violations • Follow‐up inspections

What is the purpose of risk control?

to take action by focusing on solutions that will prevent, mitigate, avoid, or eliminate risk.

What is a acceptable number of losses?

zero but you as a company need to determine how many is acceptable. This is called risk tolerance.

What are the aspects of an OSHA Inspection?

• Conducted without advance notice • On‐site inspections or phone/fax investigations • Use highly trained compliance officers

Where can safety regulations com from?

from the federal, state, and/or local level

What are the five primary types of risk control techniques?

1. Avoidance 2. Reduction 3. Transfer 4. Segregation/Separation/Duplication 5. Prevention

What is an example of substituting for a less hazardous substance or process?

1. Chemistry sets switched to different sol vends to do the same jobs 2. Tree trimmers limiting the heights of trees they cut 3. Can we substitute a process out or a chemical or a procedure

What are the six basic steps of accident prevention?

1. Eliminate the Hazard 2. Substitute a Less Hazardous Substance or Process 3. Apply Engineering Controls 4. Utilize Administrative Controls 5. Provide Effective Personal Protective Equipment 6. Train Employees. These are ranked on their effectiveness.

What are the most frequent human resource exposures?

1. Health and safety 2. Ergonomic Risk factors 3. Material handling and lifting 4. Substance abuse 5. Workplace violence

Why should organizations focus on Risk Control?

1. It is good Business 2. To reduce cost 3. For compliance 4. For care and Concern 5. To protect reputation and brand name

What is Transfer risk control

1. Reduces frequency and severity of losses by transferring some or all of the risk to another party 2. Physical transfer - shifts some or all of an operational function or exposure to an outside source. EX: hiring someone to take on the risk. 3. Contractual transfer - shifts responsibility of certain liabilities to another party. EX: making an agreement in a contract that transfers some of the liability away from us like a hold harmless agreement

What are the root causes of accidents and injuries?

1. Unsafe acts or behaviors 2. Unsafe conditions 3. Uncontrollable events 4. Lack of communication and Training

How are unsafe conditions linked to accidents and injuries?

An unsafe working area can lead to accidents occurring more frequently. applies to condition of equipment or area. Example: Inadequate scaffolding for high‐rise window washing collapses and causes the worker to fall multiple stories to his death.

What is the definition of Risk Control?

Any conscious action or inaction to minimize, at the optimal cost, the probability, frequency, severity, or unpredictability of loss.

What are some examples of applying engineering controls when applying the six basic steps of accident prevention? Also how is it defined?

Can we apply physical modifications designed to reduce or interrupt the potential for injury. Once they are set up then they are typically passive. They are designed to remove the risk by being passive. Nothing needs to be done to turn them on. Ex: Setting up button controls outside of the press machine to prevent fingers getting slammed by the press.

What does it mean can we apply engineering controls?

Can we make modifications to make it more difficult for an injury to occur.

What is the utilize administrative controls step of the six basic steps of accident prevention and what are some examples?

Creating rules or procedures that management undertakes to reduce the degree of or the potential for injury. EX: Safety Meetings, job rotation, supervision, or safety rules. Also apply to scheduling.

What is the scope of risk control?

It is a people process in which individuals within the organization must be involved in all aspects of an effective risk control program. This is a conscious action or inaction.

What is the differnece between recordable and reportable for osha?

Recordable is what you do at the end of the year as a summary of all cases. Reportable is when you have an accidnet that needs to be notified to osha within 24 hour

How does the use of risk control relate to it being good for business?

IF you do good business then you are doing your best to protect your reputation or brand name. IF you are in the news for all the wrong business then you are likely not practicing good risk control. This and to protect the reputation and the point about protecting the reputation and the brand name work hand in hand. You will be known for it rather than begin the organization that is fined or well known for being a bad company.

How are uncontrollable events linked to accidents and injuries?

Things that you cannot control but can cause accidents cause accidents because you cannot control them Example: A bridge collapses during an earthquake causing multiple injured drivers and damaged vehicles. You do not have control of the bridge but you go on it daily.

How does action or inaction relate to the definition of Risk Control?

This is intentional action or inaction. Inaction can mean that you don't want to participate in business sector because how risky it is.

What would be an example of training employees to prevent accidents?

Training employees on how to do the job safely and giving them information necessary to use the equipment or admin or engineering control is there.

What is OSHA?

Occupational safety and health administration that sets the industry standards for safety in organizations.

What is Risk Prevention?

One of the 5 techniques of the risk control process. It... 1. Reduces the frequency of losses. Stop happening as often as possible. Prevention is the focus on frequency. 2. Prevention involves an action taken to break the sequence of events leading to a loss or an action that makes the loss less likely 3. Allows entities to conduct operations that might otherwise have been avoided. Ex: Maybe we have lots of back accidents from lifting events. What can we do with lifting to limit the amount of back accidents from it? We want to break the sequence.

What is Risk Reduction?

One of the five risk management techniques. It... 1. Reduces the severity of financial impact from losses 2. It can occur Pre loss or post loss How much will they cost. Can we make then less costly? Installing sprinkler systems in the building to reduce how much damage a fire makes.

How does the utilization of Risk Control relate to care and concern?

Organizations need to have care and concern of the general public but also their employees. You cant not care for the safety of the people that are involved with your organization

What is passive risk avoidance?

Passive - discontinuing or abandoning an operation or activity that carries significant exposure to loss. EX: Colt deciding that we will not sell assault rifles anymore.

What is the greatest risk in an organization?

People

What are examples of Risk transfer risk control technique?

Physical Transfer • Using a common carrier to distribute manufactured goods rather than buying trucks to transport products • Organization leases employees rather than hiring employees • Window distributor hires independent contractors to install windows rather than hiring employees Contractual Transfer - These will be discussed in detail Section III • Hold harmless or indemnity agreements • Exculpatory agreements • Waivers of subrogation • Limit of liability clauses

What is post-loss risk reduction?

Post‐Loss - reduction activities applied after the loss Example: claims administration including prompt response, early intervention, rapid claim closure

What is pre loss risk reduction?

Pre‐Loss - reduction activities applied before the loss Example: installing fire suppression equipment

What are examples of Risk reduction risk control technique both pre loss and post loss?

Pre‐loss reduction activities • Retail strip center installs firewalls throughout buildings to reduce the spread of fire • Candy wholesale distributor installs fire suppression equipment in their warehouses • Youth hockey organization requires coaches and players to wear helmets with eye shields while on the ice Post‐loss reduction activities • Initiate a crisis management policy with emergency procedures in place for post‐loss activities (evacuation plans, communication trees, securing property, etc.) • Claims administration program is initiated to provide prompt response to accidents and incidents, early intervention, rapid claim closure, etc.

What is proactive risk avoidance?

Proactive - conscious decision to avoid exposure to loss by not doing the activity in the first place. EX: this type of risk is too risky for us so we are not going to do it. we will let someone else to take the risk.

What are examples of Risk Segregation/Separation/Duplication risk control technique?

Segregation • Computer room is designated as a high‐risk exposure and is located on the bottom floor of the building with controlled access • Spa manufacturing plant builds a storage building 500 yards away from the main manufacturing building to store flammable cleaning solvents (acetone) Separation • School district decentralizes storage of its fleet of buses by setting up three separate garage locations in different parts of the city • Appliance store splits unsold inventory between two separate warehouses 20 miles apart Duplication • Heavy equipment leasing company keeps an inventory of spare parts in readiness for breakdown of equipment • Organizations store duplicate copies of computer backups offsite • Printing company enters into a mutual aid agreement with competitors to use one another's facilities in case of loss

What is an example of effective PPE?

Steel boot preventing crushed toes or eye ware to prevent eye injuries. they are there to interrupt the chance of injury.

How are unsafe acts or behaviors linked to accidents and injuries?

The more you do it and get away with it the less risk we associate with that action. 1. Unsafe work is faster, more convenient, more comfortable 2. Unsafe behavior rarely results in injury on any single occasion 3. People may take risks when rewards are quick and certain, and risk of accident is low Example: An employee attempts to change a light bulb while using a swivel chair instead of a ladder. Making the choice.

What does it mean if a State has their own plan that is approved instead of OSHA?

The state has a osha like board that is at least osha lever or more than osha level. They are able to supplement to be more stringent than osha on some risks. Each state is different.

How does compliance relate to utilization of risk control for an organization?

We have to comply with rules. Compliance is the lowest bar to meet in order to comply with laws that the organization is subject to. By practicing risk control you can not only comply but also see how much further you are able to go.

Are you able to combine risk techniques in a risk control strategy plan?

Yes • A combination of control techniques may be needed to address an exposure or activity • Successful risk control programs incorporate all five risk control techniques or a combination of techniques

How are Lack of Communication and Training linked to accidents and injuries?

You are more likely to have unsafe working conditions or unsafe acts if there are never pointed out employees are not trained. 1. Never told, no reminders, no feedback - this illustrates the lack of safety culture. Ex: Not having a safety culture and only focusing on getting the job done regardless of anything else. If we need to bypass safety, fine.. 2. Lack of training, insufficient training, and unaware behavior was unsafe

How does the utilization of risk control relate to the protection of the brand name and reputation of the organization?

You dont want to be the company that is known for causing harm to people because people may not want to do business with you and you are then liable for any damages and suits. This point works hand in hand to the first point of risk control is good for business.

What jurisdictions apply or are subject to OSHA?

a. Cover private sector employees b. Excludes self‐employed, family farm workers, and government workers (except in State Plan states) c. Approve and monitor 28 state plans which cover private and public‐sector employees. If states is more stringent than federal, then they are allowed to do that. d. Assist federal agency programs

What is an example of separation?

a. Divides a single asset or operation over two or more locations or activities b. If one asset or operation suffers a loss, the other(s) must have sufficient capacity to meet the needs of all c. not storing all buses in one location, store them in multiple places. IF there is a fire in one, it wont affect the whole operation.

What is an example of duplication?

a. Duplicate asset or activity kept in reserve b. Duplicate asset or activity not exposed to the same loss c. extra systems, extra machinery, backing up data

What enforcement does OSHA have?

a. Inspections b. Inspection priorities after incidents c. Citations and penalties

Why may risk avoidance be difficult to sell to management?

a. May be in conflict with goals and profit motives of the organization b. Activity may be inherent to the organization's identity or mission. If the company is there to take on the risks that other companies avoid, then it may be hard to tell them to avoid those types of activities too. It could be that when people thing of the organizations name, they associate it with this risk business c. Risk manager may lack appropriate decision‐making authority

What are the record keeping requirements for OSHA?

a. Required by OSHA to affirm compliance - OSHA Regulation 29 CFR 1904 b. Annual posting of a summary of injuries and illnesses for the prior year (OSHA 300) c. Failure to document efforts to comply is treated the same as not undertaking the efforts d. Records must be kept at least five years

What type of consultations can OSHA provide for a client?

a. Resource for safety program development b. Occupational Safety and Health Consultation (OSHCON) program offers free and confidential services to help identify and control occupational hazards. In many states, OSHCON cannot issue citations. If they come out and give you solutions, you still have to comply in some degree. Not a free pass. c. Safety & Health Achievement Recognition Program (SHARP) - small business consultation (fewer than 250 onsite employees and fewer than 500 corporate‐wide employees) d. Voluntary Protection Program (VPP) - exempts employers who have implemented effective safety and health management systems and maintain low injury and illness rates below national averages from programmed inspections. If they agree they give you this designation and a free pass on routine inspection and a recognition in your community. e. Outreach Training Program - resources and grants for training and outreach

What are examples of Risk avoidance risk control technique?

• Drug manufacturing company terminates the manufacturing of a medication due to its adverse side effects (bodily injury) • Home builder ceases to purchase wooden trusses used in home construction from an international supplier due to the collapse exposure (defective product) • Hoverboard manufacturing company ceases the sale and distribution of its highly popular hoverboard product line due to explosion hazard (faulty design) • Produce grower recalls tomatoes from grocery store shelves due to listeria outbreak. (product contamination) • Destination resort closes its beaches due to seasonal shark infestation endangering its guests • Concert management company cancels a concert due to the threat of terrorism that could potentially injure thousands of patrons • Restaurant chain ceases the sale of alcoholic beverages near college campuses • Toy store discontinues importing and selling a popular wooden doll house painted with lead paint

What are examples of Risk prevention risk control technique?

• Long‐haul trucking company hires expert driver training company to conduct comprehensive driver training of all drivers • Highway construction company inspects and conducts maintenance checks of heavy equipment to ensure that it is operational and safe • Fireworks manufacturing company labels products to thoroughly explain safe use and safety hazards • Amusement park installs signs and fencing to deter public entry to unsafe areas of the park • A machine works company requires employees to use personal safety equipment (i.e. eye goggles, hard hats, safety shoes, etc.) from the time they clock in to work until they clock out • Bread manufacturing plant installs sprinkler systems in all of their buildings

What are some general rules about the root causes of accidents and injuries?

• Most unsafe behaviors and conditions are observed one or more times before an accident occurs. • Behaviors and conditions left unchanged will eventually result in accident or injury. • Root cause analysis lays the foundation for preventing future accidents and injuries.