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April 2015

7 Questions to Ask When Selecting an LMS

By Risk Management Bulletin
If you read our other learning management systems article in this newsletter, you know how popular the systems are becoming, especially among SMBs who are beginning to recognize the benefits an LMS can provide.
Today, there are dozens of LMS platforms on the market, and choosing the one that’s best for your needs takes a little time and effort. To help you narrow down your selection, here’s a quick overview of some of the most popular and beneficial features to look for:
* What costs are associated with the system? Both one-time setup costs and ongoing costs need to be accounted for. After all, if a system is too expensive, you might as well cross it off your list right from the start.
* Does the system support standards used by your business? If an LMS doesn’t offer learning modules and content for the subjects you need to cover, it’s another easy elimination.
* Is it mobile or must it be used on site? Not critical if you intend to have your employees learn during working hours, but what if they want to learn on their own time or access modules at home?
* How often is the library updated? Standards change fairly often, so rolling updates guarantee you’ll have access to the most recent guidelines and training materials for your industry.
* What types of reporting capabilities does it offer? Be sure to ask about formats as well.
* Can the platform be hosted by the SMB or will it be hosted by the LMS provider?
* What skills will your personnel need to have to successfully implement the system and help employees learn to use it? Most systems are relatively simple to use, but you do need to have at least a couple tech-savvy employees who won’t be daunted by the thought of managing an LMS.
These are just a few questions to get you started. Any selection should begin with a thorough evaluation of your needs and your expectations to avoid disappointment as well as wasted time and money.

 

Understanding Insurance Options Is the Key to Adequate Loss Protection

By Risk Management Bulletin
Having adequate insurance is the best way to protect your business and your assets from most risk-related losses. But deciding how much coverage you need isn’t always easy. If you’re reviewing your insurance needs, here are a few tips to help make sure you get the right level of coverage:
* Ask your agent if they perform risk assessments as part of their duties. Many insurance companies provide no-cost risk assessments, and these tend to be a better option that doing it on your own. Why? Because experienced insurance brokers and agents work with lots of businesses just like yours, and they know the specific types of risks your business faces and the types of coverage you need to be protected. Keep a copy of the assessment in your records for future reference.
* Know the basic types of insurance. Important types of insurance to ask your agent about about include general liability, business auto, equipment breakdown, commercial liability, employment practices liability and worker’s compensation. Be sure to ask how much of each type is required by law, but don’t be bound by the minimum amounts; most businesses need far more than the recommended minimums.
* Understand the “extra” types of insurance that are available. While not necessarily required, additional insurance can provide you with greater peace of mind. Some types to consider include business interruption insurance, key person insurance, rental insurance, boiler and machinery insurance and cybercrime insurance.
* Don’t forget your employees. You can build employee loyalty by offering health insurance and retirement options. Group pricing combined with partial premium contributions from employees can help keep your costs low.
One last piece of advice: Be sure to review your insurance needs regularly at least once a year, and more often if your business needs change due to growth and expansion, new product rollout, changes in office space or facilities, an upgrade in equipment, marketing changes or other needs. Talking to your insurance agent is the best way to learn if you have enough coverage and to find out what you can do to help keep your premiums as low as possible.

 

5 Leadership Skills You Need to Develop NOW

By Risk Management Bulletin

Risk management can be a complicated and complex process: From identifying risks to posing and testing potential solutions to finally implementing them and tracking their effectiveness, a lot of leadership skills come into play. If you play any role in managing risk, here are five critical skills you should be working on to ensure a smooth risk management process:
* Vision: Vision enables you to see the big picture and the small details, understanding the implications of risk and the benefits of rewards. Vision is essential in understanding how specific risk management processes will help the entire business thrive, and it also enables you to home in on novel approaches that may not have been tried before.

* Communication: Good communication skills means you’re able to take an idea and present it clearly to multiple audiences, not only so they understand an idea but so they become inspired by it. Clear communication can also ensure a risk management initiative stays on track and eliminate errors that occur when directives are unclear. And don’t forget: Being a good communicator also means you’re a good listener.

* Conflict resolution: Every team will have some conflict at some point in time, especially when risk is involved. Being able to see both sides of an argument and provide balanced insight that values all input is essential in implementing risk management strategies that work.

* Collaboration: Leaders can take input and advice from other team members without feeling threatened, even when that means letting go of some of their own ideas, and incorporate the best ideas into a cohesive and comprehensive approach to managing risk. They also know when it’s time to look outside the team for additional help.

* Delegation: Likewise, a leader can identify team members and those outside of the team who have specific strengths that can help identify solutions and implement them. Learning to delegate effectively is one of the most difficult leadership skills to acquire, partly because it’s difficult to give up responsibility for a project you’re spearheading. This is one skill where practice will help you to become more adept over time.
Spend some time evaluating your own leadership skills to identify ways you can help manage risk more effectively at your company.

Is a Learning Management System Right for Your Company?

By Risk Management Bulletin

Among today’s SMBs, one of the biggest trends in risk management and safety training and education is the deployment of a learning management system to handle not only the training activities themselves, but also to aid in assessment and recordkeeping. What’s a learning management system, you ask? It’s simply a software application or web-based program that can help businesses implement learning objectives and assess individual employees’ progress, and it’s becoming an essential tool for anyone involved in risk management and compliance activities.

Here are five of the top benefits offered by an LMS:
* Improved productivity: Since learning is accomplished primarily (or entirely) using an online system, businesses don’t have to devote their own staff to teaching; plus, because learning can be done at different times, workers don’t have to leave their duties during especially busy times.
* Improved reporting: Most LMS systems offer not only online reporting capabilities, but printable reports as well, making recordkeeping and audits a snap. Plus, supervisors can see an employee’s progress with just the click of a button.
* Improved learning: Being able to learn at their own pace and on their on timeline makes it easier for employees to absorb information and get the help they need confidentially so they’re more engaged in the learning process. Studies have shown that when students have the opportunity to learn at their own pace using a variety of materials, they learn faster and retain more information than they do when relegated to a traditional classroom setting.
* Lower costs: Rather than hiring outside teaching staff or sending workers to costly off-site seminars and workshops, learning can be done on site. Plus, having materials online means businesses don’t have to shell out for books and other learning materials.
* Consistent results: Because everyone has access to the same learning materials and testing, businesses can feel confident every employee is on the same page when it comes to training and compliance activities.
If you’ve been considering an LMS, there are a lot to choose from. To learn how to find the best LMS for your needs, read our second article in this issue about questions to ask when choosing an LMS.

Deliveries, On- and Off- Site Storage

By Workplace Safety

The top two reasons to properly manage storage and deliveries to a site are: lifting, loading and unloading causes about half a million injuries per year, and sites are too tight and exposed to leave valuable materials lying around outdoors.

The coordination required to reduce material handling pays off in efficiency and safety. Schedule delivery of materials an supplies so they arrive when needed, or slightly before.

Major building components need to arrive so they are placed as they are removed from the truck. Not laid down and revisited in two months. Soaked structural components placed in buildings create environments for microbes, fungus and mildew.

Any heavy materials or supplies difficult to balance on a forklift require storage where needed for construction. This storage can conflict with on-going operations, which suggests not delivering these components until installation day.

Off site storage requires moving material twice not recommended. But supplies can be stored off site if easily loaded and brought by small truck. This solution avoids theft and sloppy storage areas.

Provide and train personal protection equipment for site employees. Steel-toed boots, safety glasses, lifting belts, gloves, and hardhats at a minimum.

Train employees to lift weighty objects correctly, or simply ask for help. Bending and twisting causes hundreds of thousands of injuries per year.

Allow only trained workers to operate forklifts or mobile equipment. Load stability is critical to safe operations. Train all employees regarding the risk of these loads falling, make sure they are all aware.

Lay out storage areas with purpose. Know which items are incompatible for close by storage. The fueling area should not abut the welding area for example.

Do not allow high stacking of pallets or boxes. Falling items can break bones and crush body parts.

Talk to the site supervisors about storage on site and assess how much material can be stored safely, prior to groundbreaking. Plan deliveries for the shortest possible storage time. Try to move items only once on the site, plan accordingly. Reducing the loading, unloading and movement of stored materials will reduce strains, sprains, broken and crushed bones, and back injuries. 

Great Housekeeping Leads to Safety and Efficiency

By Workplace Safety

Job sites become messy and trashy fairly quickly, especially when inside work begins in earnest or site conditions are muddy.

Critical needs include:

  1. Keep floors clean.
  2. Keep trash removed or at least in barrels.
  3. Keep stairways and exits clear.
  4. Keep storage towards the middle of rooms.

Clean floors reduce the risk of tripping, slipping or falling. Dangerous sharp objects may be among the trash on the floor. Cuts, scrapes and puncture wounds increase on sloppy sites. Trashy work sites are a greater fire hazard too; a carelessly discarded cigarette or hot tool in a trash pile can ignite the jobsite.

Smoking should be banned completely on some sites, and tightly controlled on others with a designated area, plenty of butt pails, and a maintenance schedule to keep it clean.

Plenty of trash barrels scattered throughout the site makes disposal convenient. Designated recycling barrels for plastic, glass, wood scraps (which can be used on site) and metals and copper helps achieve LEEDs points, if desired, and a lunch fund for special events like building completion.

The object of these barrels or any other “straightening up” idea is to keep as little trip hazard on the floors as possible without adding to the cost of labor on site for specialty maintenance workers.

Life and safety rules which become compromised on sites frequently involve doors and fire escape routes. Vitally important to keep hallways clear of debris and stairwells and doors fully operational. Create a zero tolerance policy for leaving anything in a hallway, stairwell, or blocking a door, for any length of time.

Closely associated with hallways and stairwells is the need to store materials in the middle of floors. Work is generally performed on the perimeters of the rooms. A clear path around the room must be maintained for workers to access an exit without climbing over supplies.

Take a few moments during the design phase to regulate debris and housekeeping on the site. Be sure all contractors understand the importance of cleanliness and orderliness. Safety and efficiency improve with proper housekeeping.

Ergonomics: Comfortable, Efficient Work Reduces Waste and Injury

By Workplace Safety

What is ergonomics? It’s the study of the interaction of people, environment and work to create safety and efficiency. How do employees interact with technology?

Fitting Machines to People

Traditionally, machines and equipment were purchased and then work stations were created around them. The manufacturers have become savvy to ergonomics and do build in more comfort and flexibility.

Several factors need review and adjustment to fit the individual worker.

  1. Elbows should be bent slightly downward from parallel to comfortably guide the hands to the working level. Wrists should be supported where applicable.
  2. If sitting is an option, chairs should be designed with backs against the rest, knees slightly lower than hips and a foot rest or the floor fit to the employee’s leg length.
  3. Standing positions should reduce bending or tilting of the head.
  4. All tools and supplies staged within fourteen inches of the working station, in front of the worker.
  5. Keep any monitor or work in easy line of sight without bending the neck.
  6. Try to reduce repetitive motions, or allow the employee to take periodic breaks from their work to change positions or walk a bit.
  7. Anyone using phones or other communication devices regularly requires a headset, Bluetooth device, or speaker phone to avoid repetitive hand motions or neck pain from pinching receivers.

General environmental rules include lighting the workspace properly, keep aisles or halls unobstructed and the floors level with non-skid surfaces.

So you’re not an ergonomic expert nor does your company have the money to invest in consultants, what can you do?

Begin with your own workspace. What tasks are uncomfortable? If you’re on the phone constantly, try standing up or walking every so often while on a call. Feel better? How about your desk height compared to the chair? Do you have good lines of sight where needed?

Interview the office employees to investigate any ergonomic issues.

Start with the beginning of your assembly line, site workflow, or process and interview each employee along the process. They’ve thought about these issues and can give great insight. Be open to the discussion. Be open to solutions.

Correct ergonomics, a comfortable workplace, lead to tremendous efficiency. That’s your payoff.

Keep Tools Within Reach: Avoid Major Injuries

By Workplace Safety

Any task involves thinking about what tools or materials will be needed. Next, the employee must stage the task by gathering these tools, equipment, machines and supplies to ready the work space.
Train your employees to keep the space managed so reaching for tools is unnecessary. They will avoid strains, muscle pulls and worse.

Some safety consultants suggest different rules for jobs requiring one hand or two. Use the shorter reach keep reaching down to fourteen inches.

If the reaching requirement is more than fourteen inches, move the entire body rather than leaning or stretching. If the body must move excessively, the staging needs to be reviewed.

Some typical scenarios leading to overreaching:

Stretching to High Storage Areas.

Heavy objects should be stored on the ground and not stacked above waist height. Medium weight items, around fifty pounds, should be stored at stomach and chest height for easy and less strenuous capture and carry. Only very light loads should be stored no higher than shoulder height. Step stools should be available for shorter employees.

Any additional storage above shoulder height needs access via a fork lift. Moving up or down ladders or movable stairs just adds danger to any job.

Reaching Over, Across or Around Obstacle

Shoulder strains, rotator cuff injuries and other muscle tears occur when the load or stretch exceeds the capacity of the joint or muscle structure.

Never store items in a hard to reach place. Always reach from the shortest distance or move your body to a more convenient lifting location. Keep pathways clear to any storage area.

Working from a Stage and Reaching Down to Pick a Supply

Your on the scissor lift and forgot that bucket of sheet rock compound, do you climb down or reach for it? Train your employees to climb down, lift it properly onto the stage and then remount.

Look around your facility, job site, storage area, even in the office for situations where dangerous reaching might occur. Rethink your layout to eliminate these situations and train your employees how to spot them.

Make sure everyone knows it’s alright to ask for help. 

Employment Practices Liability: The Coming Plague

By Business Protection Bulletin

Employment Practices Liability (EPL) differs from other professional and management coverage since it protects the company from acts which violate the employees’ legal rights of employment.

 

What are these rights?

  1. Sexual Harassment
  2. Discrimination (sex, race, national origin, age religion or color)
  3. Wrongful Termination
  4. 4. Constructive Discharge
  5. Infliction of Emotional Distress
  6. Violation of the Family Leave Act

 

The meaning of the laws regarding these rights and insurance coverage for these acts is fairly well established.  Policy language and court cases have hammered out some of the conflict.

 

From a risk management perspective, sensitivity training and the development and implementation of strict behavioral guidelines greatly reduces the risk of claims.

 

Three factors in this risk change almost daily and must be addressed.  State laws may expand the protected classes (sexual orientation) covered by employment law.  These suits are massively expensive to litigate.  Thirdly, outsiders like contractors, customers, and suppliers are now claiming under this tort.

 

Although States regulate insurance, insurance companies tend to be regional and national; therefore, policy language does not always represent state law or the conditions under which the laws apply.

 

Have your state-licensed insurance agent read policy language to assure proper coverage in each state your company operates.

 

The policy limit includes litigation costs and claim payouts.  Legal fees are not add-ons as in other liability policies.  So, as the insurance company lawyer negotiates at length, your available funds to settle dwindle.  This process can become a very dangerous game of chicken for your assets.  Increase limits accordingly and keep informed as to the progress of any negotiations.

 

Customers, suppliers and contract labor are beginning to avail themselves of this course of action.  Train all employees and implement strict behavioral protocols at all levels and duties.

 

Most important, assure your managers spot poor or reckless behavior early, and correct it.  Zero tolerance policies work in this area.  You wouldn’t want to work in a truly hostile environment.  Don’t turn your back on these behaviors

Funding Self-Retention Risks

By Business Protection Bulletin

When my nephew was eighteen, he wanted to buy a new car on credit.  I counseled him to buy a car he could afford for cash and begin saving what would have been his monthly payment for the next six years.  If he wanted a new car then, he would have the cash to buy it and could begin the savings plan anew.  He got someone else to co-sign.

 

The point of the story is he did listen; he just didn’t have the discipline to save, a fault many businesses suffer.  Very few business plans include setting aside savings equal to depreciation costs, sinking funds for equipment replacement or modernization, or self-insured retentions.  All funds which will be needed at unpredictable times.

 

Self-insured retentions include deductibles on property claims, retentions under umbrella policies, uninsured claims, or even disagreements over valuations.  Realize these situations will occur over time and preparing for them is important.  It’s a good bet that every business will have fluctuations in good and bad markets over a twenty or thirty year period of time.  The worst problems invariably occur during down cycles, usually because corners are being cut on a regular basis.

 

Start your sinking fund discipline by reviewing your insurance policies and internal procedures to determine how much cash could potentially be required to respond to emergent situations: collision damage to a car, window replacement in buildings, or any other minor but usual event.  Put this amount aside or create a plan to save it immediately.

 

Next, consider normal long-term issues like property fires, depreciation, or equipment upgrades due to modernization.  Begin buying Certificates of Deposit or other cash equivalent interest bearing investment.  You want low risk and liquid to respond to these types of issues.  You can buy CDs on an annual basis and have some mature each calendar quarter to get a bit better returns.

 

Once the quick cash reserve is in place, you can begin investing these deposits in longer-term higher-yield investments like stocks or mutual funds.  The important step is to begin a program of savings for the unexpected.  This advice is some of the best risk management: be prepared for the disaster, and it won’t be a financial disaster.