Embed Size (px)
Citation preview
©Orion HR Group, LLC
Risk Management
TCHRA2014
Larry Morgan, SPHR, GPHR, MAIROrion HR Group, LLC
PHR / SPHR Exam
8% of exam for PHR 7% of exam for SPHR Questions tend to be easier in this
module We’ll cover items most likely to be
on exam
What areas are covered in this module?
Six sections Organizational Risk Key Legislation Safety Health Security Privacy
What is Risk Management?
It is the chance that something will happen, positively or negatively, that will affect business goals and objectives.
It is the use of insurance and other strategies in an effort to prevent or minimize an organization’s exposure to liability in the event a loss or injury occurs.
Risk management techniques
Assess Risk
Develop Systems
Implement Programs
Monitor Efforts
Evaluate / modify systems
Operational Risk includes:
Personnel risk Physical assets Technology Relationships External/regulatory
Types of situations
Worker injury and safety Violence Fraud Theft Lawsuits Natural disaster / business continuity Pandemic PC Virus
Addressing Risk Analysis
Conduct audit to assess security risk factors (vulnerabilities) Ensure compliance with local, state and federal laws Legal compliance Best practices
Four categories Virtually certain Highly probable Moderately probable Improbable
Risk analysis, continued
Assess against impact or cost Cost to permanently replace lost or damaged assets Cost to temporarily replace lost or damaged assets Cost of related losses caused by the inability to
carry on normal activities Cost of loss of investment income from short term
expenses incurred to meet these costs Severity of impact placed in four levels
Level 1 – Fatal to the organization Level 2 – Very serious Level 3 – Moderately serious Level 4 – Not serious or negligible
Why should HR Care?
Examine HR policies / procedures to determine organization risks
Provide a safe work environment Understand and minimize / eliminate risk Collaborate with other functional areas Monitor compliance with laws and
regulations Communicate policies and procedures Provide risk mgmt training programs Evaluate the effectiveness of programs
HR role
Handling “people” risks Staffing Personnel policies Insurance polices (workers comp,
unemployment comp, disability, health care) Access issues to facilities and technology Training Compliance and regulatory Safety Risk assessment Disaster recovery
HR and Staffing
Cannot ask potential employees about workers comp claims, accidents, etc.
Questions regarding criminal activities must be job related and based on convictions, not arrests
ADA issues Job description and essential functions Identify physical requirements
FMLA issues and return to work Due diligence regarding negligent hiring and
negligent retention Contingent offer must be made before medical
testing (drug, physical exam, blood pressure, etc) Testing must be job related and validated After contingent offer, you may ask about workers
comp, disabilities, etc.
OSHA Background
Following several major industrialized accidents including fire and mine explosion
No state standards OSHA created in 1970 to standardize
reporting and create federal agency to regulate safety
Mission is to enact and enforce federal safety regulations Uses “carrot and stick” approach Able to inspect and issue citations and fines Track data with NIOSH
Key legislation in Risk Management
Mine Safety and Health Act Drug free workplace act USA Patriot Act Homeland Security Act Americans with Disabilities Act Fair Labor Standards Act OSHA Electronic Communications Privacy Act Genetic Information Nondiscrimination Act
(GINA)
Cause of Accidents
20% of injuries are caused by unsafe conditions
80% of injuries are caused by unsafe acts
OSHA General Duty Clause
Organizations have “a general duty to provide a workplace that is free from ‘recognized hazards’ that are likely to cause death or severe physical harm”.
OSHA Employee Rights
The right to demand safety and health on the job
The right to demand inspections The right to have an authorized employee
representative accompany an inspection The right to file a complaint The right to be informed of workplace
hazards The right to receive training
OSHA Hazard Communication
Employee “right to know” Employees must be informed if working
with hazardous materials Must be trained at time they are assigned Audiovisual, classroom, interactive Additional training may be required MSDS required by manufacturer or importer
Extended to align the US with Globally Harmonized System of Classification and Labeling of Chemicals
OHSA Employer Rights
Request and receive proper OSHA identification
Be advised of the reason for the inspection Accompany the OSHA official Refuse inspection without a search warrant Have trade secret confidentiality Require any employee representative have
security clearance File Notice of Contest in writing OSHA Area
Director within 15 working days of citation or penalty
Key OSHA standards
OSHA has six volumes of standards in the Code of Federal Regulations (CFR)
Four major categories General industry Maritime Construction Agriculture
Mining industry covered under Mine Safety and Health Act
OSHA Standards
Emergency exit standards Occupational noise exposure Machine guarding Personal protective equipment Process safety management Continued….
What is “lockout/tagout”?
Equipment that is being serviced or not functioning properly should be: “deenergized” Isolated from energy sources Locked or tagged
If “lockable”, it is locked out and unusable
A “tagout” is a “do not use” or “out of service” label on the machine
What is meant by confined space?
Areas with unique physical hazards Includes manholes, sewers, tunnels Hazards include:
Excessive heat Insufficient oxygen or too much oxygen Toxic or flammable gasses Danger of being trapped
Special OSHA regulations apply
What is meant by Sick Building Syndrome?
Employees get acute illness for no apparent reason
Possible causes: Stress Inadequate ventilation Chemical contaminants from internal causes Chemical contaminants from external causes Biological causes
Investigate cause Air sampling
Bloodborne pathogens
Needlestick Safety and Prevention Act of 2000 Microorganisms found in human blood that can cause
disease such as HIV, AIDS, Hepatitis B If at least one employee may be exposed to potentially
infectious materials in the course of duties, there must be: Written exposure control plan Employee protection Employee training Offer occupationally exposed employees the
hepatitis B vaccine Use safer devices Tracking log of all needlesticks, not just those that
actually lead to disease Maintain privacy of employee who suffer needlesticks
OSHA record keeping requirements
Employers with more than 10 employees must report all employee occupational injury and illness data
Occupational injury
Occupational illness
Recording criteria
Employers are required to record work related illness and injury if they result in: Death Days away from work Restricted work or transfer to another job Loss of consciousness Diagnosis of a significant injury/illness by a
physician or other licensed health care professional
Medical treatment beyond first aid
OSHA Forms
Form 300: Log of work-related injuries and illnesses
Form 300A: Summary of work related injuries and illnesses
Form 301: Injury and illness incident report
For information, go to: www.osha.gov/recordkeeping/new-osha300form1-1-04.pdf
OSHA Form 300
OSHA Form 300A
OSHA Form 301
Incidence rate statistics
Recordable incident rate Example
DART (Days away/restricted or transfer rate) Example
Recordable Incident CalculationAxeman Company Example
Number of OSHA Recordable Cases (15) x 200,000
Number of Employee Labor Hours Worked (400,000)
=
Incidence rate of 7.5
Days Away / Restricted or Transfer (DART) Rate CalculationSlippery Fred’s Company Example
Number of DART incidents (10) x 200,000
Number of Employee Hours Worked (400,000)
=
DART rate of 5
OSHA Inspections and priorities
First priority- imminent danger Second priority – Catastrophes and
fatal accidents Third priority – Employee complaints Fourth priority – Referrals Fifth priority - Follow-ups Sixth priority – Planned Investigations
and high hazard industries
Question
OSHA receives a warning regarding scaffolding on a multi story worksite in which workers could fall and seriously injure themselves. What priority would this have:a)Firstb)Secondc)Third d)None, the employer must call
Inspection procedures
Opening conference Physical inspection Closing conference
Question
OSHA representatives show up and demand an inspection. The employer demands a search warrant before allowing them on premises. How is this handled?a.The employer has no right to request a search warrantb.If OSHA has police present, there is no need for a warrantc.OSHA will leave and return with a warrantd.OSHA will levy additional fines for the delay
Violations and penalties
Five levels Willful Serious Other than serious Repeat De minimus
Citations
Other safety issues
Safety programs
Definitions Safety hazard Incident
Priorities First priority – eliminate hazard completely Second priority – use safeguards Third priority – use warning signs Fourth priority – train and instruct Fifth priority – Provide personal protection
Safety committees
Clear purpose Focus is on prevention and
awareness Electromation case Group recognition with tangible
rewards Educate on safe work habits Plant safety scorecards
Accident scene priorities
1. Arrive safely and take charge, evaluate the situation, care for the injured, protect others from injury
2. Protect the mishap site, keep management informed, contact appropriate state and federal officials
3. Control crowds and traffic, take photos or make sketches, hold witnesses together, erect barriers
4. Gather samples of evidence, label samples, take measurements, identify photos and sketches, identify witnesses by name and contact info
5. Interview in a quiet, neutral setting; tell witnesses the purpose of the interview; let witnesses tell their story; take notes; avoid leading questions, be neutral
Accident investigation
An accident is an undesired event that results in physical harm to a person or damage to property
Learn why the accident occurred Investigate the scene of the accident Interview the injured employee, supervisor and
witnesses Complete the accident investigation report
Make changes that will prevent future accidents
Communicate with the employee
Ergonomics
Proper design of work environment to address the physical demands experienced by employees
Assess physiological factors and psychological factors
Methods Ergonomic team Work site analysis Redesign of job Workplace surveys Training Onsite exercise programs Monitor
Ergonomic issues
Musculoskeletal Disorders (MSD) Repetitive motion injuries such as
Carpal Tunnel Syndrome Tendonitis Bursitis
Video Display Terminals Lower back strains Modified duty programs
Ergonomic problems
The method used or required to do the job The effort or strength required to do the
job The location or position of parts,
equipment, or tools The speed or frequency of the work The duration or repetition of the tasks The design of the parts, equipment or
tools
Ergonomic issuesAdministrative or Engineering?
Administrative Lack of recovery time between shifts Excessive overtime Insufficient breaks Stressful work organizations Increase in production demands Inadequate training
Engineering Outmoded equipment design Inadequate seating or positioning Improper alignment or setup
Physical risk factors
Repetitive motion Rapid hand and wrist movement Awkward posture or seating Heavy lifting Hand arm vibration VDT- improper alignment of computer
screens Employee self modification of work space
Question
The VP of HR for a software company is concerned over the incidence of carpal tunnel syndrome and has asked for your help in addressing the issue.
What are possible courses of action?
Health issues
Infectious diseases HIV AIDS Hepatitis B and C Tuberculosis Pandemics
Environmental health
Physical (heat, noise, vibration, air conditioning, radiation, ventilation, smoking, sanitary conditions, drinking water, workplace design)
Chemical (dust, fumes, gases, toxic materials, toxic chemicals, carcinogens, smoke)
Biological (bacteria, fungi, insects)
Employee assistance programs
In house or outside contractors Services are generally 24/7
Alcohol and drug abuse counseling Emotional counseling Family and marital counseling Legal counseling Financial counseling Career counseling Workplace violence counseling Referrals Management support
Employee wellness and fitness programs
Flu shots First aid and CPR training Health risk assessments Health fairs Wellness / exercise / physical fitness Nutrition education High blood pressure control Weight control Stress reduction Smoking cessation
Drug testing
Drug free workplace act Department of transportation When do you test?
Pre-employment Random Post accident Post treatment Annual or periodic Reasonable suspicion and for cause
State laws
Types of drug testing
Blood Urine Saliva Hair Breath alcohol
Intervention strategies
Constructive confrontation Counseling Referral ADA and drug use
Workplace Security
Fire Industrial sabotage Trespassing Employee theft Executive kidnapping Theft/sabotage of classified information Violence Terrorism
Security measures
Guards Identification and control systems Structural barriers Security hardware Surveillance and monitoring
Question
An organization is conducting layoffs with several staff. What steps may be taken to reduce risk of violence or litigation?
Theft and fraud
Inventory counts Fraud hotlines Sound auditing procedures Video surveillance Dollar limit authority Checks and balances Internal financial procedures Controls for audit and access Use of polygraph and other mechanical/
electrical devices
Emergency response plan
Natural disaster Flood Fire Tornado Earthquake Volcanic eruption
Human disaster Civil disaster Labor disturbance Chemical/gas leak Explosion Blackout Brownout Workplace violence Pandemic
Mandated vs. Voluntary plans
OSHA mandates employers who store, manufacture, or use highly toxic chemicals, toxins or reactive materials to have emergency response plans and training to employees
FEMA has sample emergency plans on their website
American Red Cross Purchase or develop plans
Key steps in plan
Must be customized Involve senior management Create a team Identify coordinators Have plans offsite Clear priorities
Protect life Eliminate risk of injury Save assets Minimize loss Resume normal operations as quickly as possible
Identify resources Communicate the plan Test the plan Keep the plan current
Workplace violence
Causes Warning signs HR response
Workplace privacy
Protection of proprietary information and trade secrets
Technology security risk Workstation / Network Database / Software Hackers / virus
Identify theft and Red Flag rules HITECH regulations Monitoring employees
Electronic Communications Privacy Act European Union Data Privacy Provide training to employees
Whistleblowing
Now required for SOX companies Identify clear process and policy Allow anonymous reporting Develop investigative process Communicate to employees Take prompt action Provide appeals process No reprisals
Liability Insurance
Employment Practices Liability Insurance (EPLI) Exclusions
Professional liability Professional liability insurance E&O D&O
Fiduciary status of HR Corporate governance
Question
What type of insurance would mitigate claims of negligence in performance of professional services by managers?
Workers compensation
Covered in other areas of course State program, not federal Covers job related injury and illness Medical expenses and lost wages May be self insured or fully insured Rates based on occupation, employee
demographics and experience
Genetic Information Nondiscrimination Act (GINA)
Prohibits employment action based on genetic factors
Caution- Pre-employment physicals and
questionnaires Wellness programs Personnel file contents HIPAA and PHI / ePHI information
Key terms- know these!
Acquired immune deficiency syndrome (AIDS)
Bloodborne pathogen Building related illness Business continuity planning Computer vision syndrome Confined space entry Cumulative trauma disorders
(CTD) De minimis violation D&O coverage Disaster recovery plan Drug free workplace act Early return to work program Emergency exit procedures
(means of egress standard)
Employee Assistance Program Employment practices liability
insurance Enterprise risk management
(ERM) Ergonomics Errors and Omissions (E&O)
insurance Fetal protection policies General duty clause GINA Hazard Hazard communication
standard (employee right to know)
Homeland Security Act Human Immunodeficiency
Virus (HIV)
Incident Job burnout Lockout Machine guarding standard Material Safety Data Sheets
(MSDS) Mine Safety and Health Act Modified duty program Musculoskeletal disorder
(MSD) National Institute for
Occupational Safety and Health (NIOSH)
Needlestick Safety and Prevention Act
Occupational illness Occupational injury
Occupational Noise Exposure (hearing conservation) standard
Occupational Safety and Health Act (OSHA)
Occupational Safety and Health Administration (OSHA)
Occupational Safety and Health Review Commission (OSHRC)
OSHA Form 300 OSHA Form 300A OSHA Form 301
Other than serious violation
Pandemic Personal Protective
Equipment Standard Process Safety
Management Standard Professional liability
insurance Proprietary information Repeat violation Risk management Risk management
scorecard
Safety committee Serious violation Sick building
syndrome (SBS) Tagout Unsafe acts Unsafe conditions USA Patriot Act Voluntary protection
program Vulnerabilities Wellness program Willful violation
Sample Quiz questions
Question 1
An employee does not use hearing protection required for the job. This is an example of:
a) An unsafe conditionb) An unsafe actc) A willful violationd) The Darwin effect
Question 2
Communication to employees about toxic substances they may be exposed to is required by:
a) ADAb) GINAc) Hazard communication standardd) Workers compensation carrier
Question 3
Return to work programs require injured employees:
a) Return to work with less strenuous jobs on a permanent basis
b) Refrain from FMLA until they are medically clear to return to work
c) To stay away until fully clearly to perform all duties
d) Perform jobs that accommodate current limitations
Question 4
The top OSHA priority for inspections is:
a) Employee deathb) Employee complaintsc) High risk industriesd) Hazardous situations
Question 5
Which OSHA form must be posted by February 1 of each year:
a) OSHA Form EEO-1b) OSHA Form 300c) OSHA Form 300Ad) OSHA Form 301
Question 6
Which role should a safety committee play at work:
a) Train employeesb) Investigate accidentsc) Review annual accident ratesd) All of the above
Question 7
Reducing the chance of infection in the workplace can be accomplished through all of the following EXCEPT:
a) Education including frequent handwashing
b) Strong disciplinary actionc) Effective absence management
programs to encourage staying home when ill
d) Protective clothing
Question 8
A two year employee with no history of problems or discipline becomes moody and has absence and quality problems. In meeting with the employee, the supervisor learns that the employee is having financial problems. The employer should:
a) Ignore the work behaviorb) Drug test the employeec) Refer the employee to employee
assistance programd) Discipline the employee
Question 9
A major component of a security risk analysis is to:
a) Identify potential problem employeesb) Determine the cost ratio of loss to
expensec) Determine the risk factorsd) Determine the cost of lost or damaged
goods
Question 10
A primary cause of employee violence is:
a) Poorly handled terminationsb) Working in high crime areasc) Working with the general publicd) Guarding expensive or valuable
property
