I Now Have Risk Management Too Scott J. Blaser, CSP, RMPE Director, Risk Control

From your own perspective, what is risk management From your own perspective, what is risk management? Give me your definition.

“Risk Management is the practice of protecting an organization from financial harm by identifying, analyzing and controlling risk at the lowest possible cost” - Robert J. Marshburn, CIC, CRM, ARM

Risk Managers are being asked to take on Human Resource duties or HR management is being asked to take on Risk Management duties.

How much are you going to be accountable for and how much authority will you or do you have?

Do you feel your public entity has a culture that is supportive of risk management? Why or why not?

How satisfied are you with the current risk management process? What would you keep? What would you like to see change?

What were my predecessor’s strengths? What were his/her weaknesses?

What was your public entity’s biggest risk management failure in the past five years?

3 Short Thoughts Don’t risk a lot for a little Don’t risk more than you can afford to lose Don’t treat insurance as a substitute for risk control* * CRM Practice Manual

Some Basic Steps Identify your risks Property Assets Small scale losses Large scale losses Fleet

Some Basic Steps Identify your risks People Workers compensation Contractors/vendors General liability Property damage Injuries

Some Basic Steps Identify your risks Cyber Law enforcement liability Product liability Security/active shooter Employment liability Contract liability

Some Basic Steps Identify your risks Elected official Land use Meetings

Identify Your Risks Develop Your Plan to Control Contractual Transfer Insurance Transfer Retain Deductibles Self Insurance

Some Basic Steps Know your retention levels Monitor and modify

Build Your Team Internal Legal Your staff Human Resources Accounting Department heads Key staff members Safety committee

Build Your Team External Insurance carrier staff Risk Control Adjusters Other resources TPA’s Agent/Broker Consultants

Build Your Team External PRIMA – Public Risk Management Association RIMS – Risk Management Society FMASH – Florida Municipal Association for Safety & Health

Build Your Team MUST COMMUNICATE WITH YOUR TEAM!

Professional Education: Certified Risk Managers International - CRM Insurance Institute of America – ARM, ARM-P, RMPE Insurance Skills Center - CISC

Professional Education: International Risk Management Institute (IRMI) – CRIS The Society of Certified Insurance Counselors - CIC American Hardware Mutual - Commercial Insurance Specialist

Workers’ Compensation & Your Experience Modification Factor Workers’ Compensation Premium – Payroll x Rate x Mod = Premium Can Only Control the Mod!

Frequency Leads to Severity Claims Issues Frequency – How many losses Severity – Large losses Frequency Leads to Severity

Two Types of Losses Medical Only – medical treatment for injury/exposure – worker returned to work in less than 7 days Lost Time - medical treatment for injury/exposure – worker returned to work in more than 7 days

Experience Mod Example

Experience Mod Actual Losses Expected Losses 1.00 is average Below 1.00 is good – a discount Above 1.00 is not so good – a surcharge

Keys to Managing Your Mod: Reduce losses through effective safety program Effective return to work program to reduce the number of lost time claims Monitor your claims reserves with TPA/carrier

Any Questions?