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Monthly Archives

March 2014

WHEN BAD THINGS HAPPEN TO GOOD COMPANIES

By Risk Management Bulletin

If disaster strikes your business, how you respond, and how the public perceives this response, can have a significant and lasting impact. A poorly handled reaction will damage your reputation, lead to lost customers and sales, and even trigger litigation – while an effective response can help mitigate those threats. Planning makes all the difference.

Two trends make catastrophe planning more crucial and complex than ever: the growth of foreign investment and the explosion of social media. More U.S. companies now have operations abroad or are considering investing overseas.  When a catastrophe occurs, the global reach of the Internet and social media means that news and images can spread around the world in seconds. An ineffective response will bring a drumbeat of negative media stories until the issue finally fades from public view. By that time, the damage might be irreparable.

On the other hand, a response that engages the public and highlights your efforts to resolve the situation can turn a negative story into a positive one. For example, when a group of miners was trapped in a Chilean mine, video footage from inside the mine showed that the men were safe and helped to focus attention on the highly innovative, and ultimately successful, plan to rescue them.

Although you can’t predict when or where a catastrophe will strike, you can prepare ahead of time. Then, when disaster strikes, you’ll be ready to deploy a robust catastrophe and reputation management plan for handling the incident and dealing with media coverage. Effective pre-planning should include these steps:

1.      monitor trends while thinking outside  the box;

2.      implement internal and external response procedures, and;

3.      practice these responses.

For more information, please get in touch with us.

RISK MANAGEMENT: NOT JUST FOR THE BIG GUYS

By Risk Management Bulletin

No matter the size of your business, you can benefit from using the basic techniques that major corporations employee to control their risks. Consider these examples:

  1. Plan and plan again. Develop a comprehensive business continuity plan based on a thorough knowledge of your operations. As part of this process, establish procedures to drive decision-making in an emergency and help ensure that information gets to the right people. Test the plan at regular intervals. “It’s a terrific training mechanism,” advises Jim Hedrick, Area Vice President of Business Continuity Planning at Arthur J. Gallagher & Co, (Cincinnati) “and also helps identify who shouldn’t be in your plan. Sometimes you have people in these events who just melt down because they can’t handle the stress.”
  2. Review supply chain risks. In an effort to cut costs, more and more companies have reduced the number of suppliers, changing their risk profile in the process.
  3. Define your “risk appetite.” Identify the risks your business faces and decide which ones you’re willing to assume and those that you prefer to ensure. You can use this process to benchmark yourself against the risk management practices of your competitors.
  4. Encourage return-to-work efforts. These programs can produce significant savings in workers compensation costs, allowing injured workers to participate in modified work assignments while they recover.
  5. Work with professional risk management organizations, such as the Risk and Insurance Management Society (RIMS). These groups can provide valuable continuing education and networking activities.

As risk management professionals, we can provide you with a comprehensive review of your program and recommend revisions – free of charge, of course. We’re always here to help.

DO YOUR PROTECTION DEVICES REALLY PROTECT YOUR BUSINESS?

By Risk Management Bulletin

You set the security alarm every night on your way home. You double-check the window locks and turn the deadbolt on the back door. You place your cash and valuables in the safe. Before turning out the lights, you start the backup routine on your computer. Congratulations! All of these steps help minimize your chance of loss and make you a more effective risk manager. But how do you know that these devices are working properly?

For example, although you’re performing regular backups to your computer, do you double-check to be certain the data is actually there? One systems administrator ran her backup routine every night, only to discover at the time of a systems crash that all backup files for the past six months were blank, due to a hardware malfunction.

Have you tested your security alarm lately to make sure that it actually alerts the police or fire department? Are you sure that your safe locks completely when the door is closed? If your employees sometimes close up at night, do they have a checklist that covers every step in the process?

Making your protection devices work as hard as you do is just one of our services. Although many agencies can sell you insurance, we do far more than this. We can help minimize your losses by implementing a comprehensive and effective risk management program that supplements your insurance by providing a “safety net “to catch you.

Our philosophy is clear: The best claim is the one that never happens. If you agree, just give us a call.

INFORMATION SECURITY RISKS: LEAKS FROM TOP TO BOTTOM

By Risk Management Bulletin

Top managers are more likely than rank-and-file workers to put their companies at risk for data breaches and theft of intellectual property, according to a recent nationwide study.

On the Pulse: Information Security Risk in American Business” a survey of more than 750 information workers by digital security risk management firm Stroz Freidberg found that nearly nine in ten senior managers (87%) have sent work materials to personal e-mail or cloud accounts, making this information vulnerable to outsiders. What’s more, nearly three in five (58%) managers surveyed (58%) accidently sent sensitive material to the wrong person – compared to 25% of workers overall.

This risky behavior didn’t change when managers moved on. More than half of top management and more than one in three mid-level managers (37%) admitted to taking job-related emails, files, or confidential information with them after they left their employer. About one in five lower-ranking employees (20%) did so.

“Insiders are by far the biggest risk to the security of a company’s sensitive information, whether it’s a careless executive or a disgruntled employee,” say Stroz Friedberg CEO Michael Patsalos-Fox. More than half of senior managers (52%) in the survey stated that they had failed to meet their responsibility for protecting their companies against cyber risk.

Bring-your-own-device (BYOD) workplaces also open the doors to hackers, malware and viruses. Although improved internal communication and training can help mitigate this risk, only one in three workers (35%) at BYOD companies say that their employers trained them on mobile device security.

We’d be happy to recommend guidelines for a comprehensive review of potential chinks in your cybersecurity armor. Feel free to get in touch with us at any time.

PICTURE THIS! USING VISUALS IN SAFETY TRAINING

By Workplace Safety

Because safety training is an ongoing activity in your workplace, it makes sense to find new ways of keeping employees involved. The use of visuals, including images and videos, can play a key role in this process.

Although safety trainers tend to avoid using pictures in their materials, “All of the research on learning with pictures indicates that pictures used in combination with words create better learning,” says Jack Massa, owner of Guidance Communications, Inc. (www.guidancecom.com). Massa uses a broad definition of “pictures” to include “any visual that is meant to represent something, either concrete or abstract;” everything from high-definition stock photos through diagrams to simple line drawings.

He recommends careful selection of visuals. A common mistake is using them as “decorations” that represent an idea or concept, rather than educational tools that support the specific learning content.

Another frequent error is failure to keep visuals in mind. Just as trainers think about how to express concepts in words, they also need to decide how they will communicate ideas visually.

Massa offers these guidelines for selecting picture:

  1. Decide which types of visuals are best suited to the content. For example, a flowchart can be effective when training on a new process or procedure.
  2. Use good graphic design principles. Look for consistency in the visual presentation, and don’t combine different styles of clip art.
  3. Leave out extraneous information. Keep drawings and diagrams simple and only include text that supports learning.

Remember, one picture can be worth 1,000 words.

DON’T LET ‘LEAN MANUFACTURING’ THREATEN WORKPLACE SAFETY

By Workplace Safety

Many companies use “lean manufacturing” procedures to streamline production by reducing wasted time and motion. Although these changes often show up in the bottom line as black, their long term repercussions on workplace safety – higher accident rates and workers comp premiums –could put a business back in the red.

“Approximately 65% of workers compensation claims are for musculoskeletal disorders (MSDs),” says Chris Shulenberger, Technical Director for Ergonomics with Bureau Veritas North America Shulenberger. However, many employers might not make the connection between their lean manufacturing procedures and high rates of sprains and strains, overexertion injuries, and cumulative trauma MSDs among their employees.

If you streamline your manufacturing, beware of these potential pitfalls that could turn “leaner” into just plain “meaner:”

  • Excessive Overtime. Lean manufacturing depends on a smooth supply chain. When there are glitches, workers need to pick up the slack with increased production and longer hours, both of which contribute to MSDs.
  • Hyper-efficiency. For some employers, the drive to improve employee productivity ignores human limitations. Removing the waste from jobs eliminates essential time for workers’ bodies to restore themselves, which can reduce disabling MSDs.
  • Working through pain. Some supervisors in lean manufacturing facilities are slow to respond to worker reports of fatigue, discomfort, and/or pain: the earliest symptoms of an MSD. In other cases, there’s “working through pain” culture which encourages employees, like high-performing athletes, to ignore early symptoms – which can easily lead to a MSD. Make sure that your workers report any MSD symptoms and supervisors know how to respond to these complaints.
  • Micromanagement. Increasing the intensity of work reduces employees’ control about how they do their job – a proven risk factor for MSDs.

Our risk management professionals would be happy to review the potential impact of your manufacturing procedures on workplace safety.

COURT: SHOE-TYING DRIVER CAN COLLECT WORKERS COMP:

By Workplace Safety

A United Parcel Service driver who hurt his back while tying his shoe is entitled to workers compensation benefits, says the Idaho Supreme Court.

Michael Vawter began working as a UPS delivery driver in 1983. In 2009, when he stooped to tie his boot laces while waiting for his truck to warm up at the start of his shift, Vawter immediately felt “a pop and pain” in his lower back, according to court records.

After being diagnosed with a herniated disc and cauda equina syndrome (a neurological condition of the lower spine), he filed for workers comp benefits, claiming that his injury resulted from his work at UPS.

The company denied Vawter’s claim, arguing that his injury was not work-related, but resulted from a pre-existing condition. However, the Idaho Industrial Commission ruled that he should receive temporary total disability benefits, plus another $149,000 in medical expenses. After a series of appeals by UPS, the state Supreme Court upheld the commission’s decision, ruling that injuries to workers are presumed to arise from their employment when an accident occurs on an employer’s premises. The decision also noted that UPS requires its employees to have their shoes tied or secured under a policy that specifies “no loose or dangling parts” on employee footwear.

In addition to affirming the benefits previously awarded to Vawter, the high court ordered the company to pay an additional $24,627 in medical costs that he accrued between the date of his 2009 injury and the first hearing before the Commission.

The moral of the story: Before you contest any workers comp claim, be sure you’re on sound legal grounds.

 

WORKPLACE SAFETY: JSAs ARE A-OK

By Workplace Safety

Job safety analysis (also known as job hazard analysis or safety analysis) can play a key role in helping keeping your workers safe – and your workers compensation premiums under control. A JSA breaks a specific job into basic steps, identifies the hazards associated with each, and recommends controls for these exposures.

Although you can do a JSA on any job, it makes sense to focus on those that: 1) have the highest injury or illness rates or the potential to cause harm; 2) are new to your workers or have changed procedures recently; and 3) are complex enough to require written instructions.

The analysis should review statistical data to reveal trends and identify specific areas of focus on accident prevention. Data to analyze includes recordable injury and first-aid logs, safety inspections, and reports of accident investigations, and employee hazards. Look for similarities between the data and job location, type of equipment in use, time of day, and day of the week – as well as when and where near misses have occurred. Be sure to include, and document, observations of employees who work in hazard-prone areas.

Once you’ve completed the JSA and identified the hazards, you can develop and implement such corrective actions as:

  • finding a new way to do the job
  • changing the workplace conditions that create the hazard
  • revising job procedures
  • reducing the necessity or frequency of high hazard jobs or tasks

As part of every accident investigation, review the analysis. If a JSA hasn’t been conducted, perform one to determine the events and conditions that led to the incident.

For more information on this powerful job safety tool, just give us a call.