1. Principles of Risk Management and Safety Programs for Public Entities

2. 2 Confusing Terms ? RISK MANAGEMENT RISK MANAGEMENT LOSS CONTROL LOSS CONTROL SAFETY SAFETY

3. 3 Risk Management The process of making and carrying out decisions that will minimize the adverse effects of accidental losses upon an organization. The process of making and carrying out decisions that will minimize the adverse effects of accidental losses upon an organization.

4. 4 Risk Management Process Risk Management Process Identify & analyze loss exposures Identify & analyze loss exposures Examine the feasibility of alternative Risk Management techniques Examine the feasibility of alternative Risk Management techniques Select best technique Select best technique Implement the technique Implement the technique Monitor and evaluate for cost effective results Monitor and evaluate for cost effective results

5. 5

6. 6 Loss Control Risk management techniques designed to minimize the frequency or severity of accidental losses or to make losses more predictable. Risk management techniques designed to minimize the frequency or severity of accidental losses or to make losses more predictable.

7. 7 Safety Freedom from danger or injury Freedom from danger or injury

8. 8 Reduce the Confusion Reduce the Confusion Safety is the most important part of each and every employee’s daily tasks. Safety is the most important part of each and every employee’s daily tasks. Goal of safety must be the reduction of risks and prevention of accidents through alertness, care, and attention. Goal of safety must be the reduction of risks and prevention of accidents through alertness, care, and attention. Management Involvement is the key ! Management Involvement is the key !

9. 9 10 Mistakes Made Most Often By Employers Trying to Control Losses

10. 10 1 Failure to Assign Responsibility to One Person 2 Failure of Top Management to be Committed to Loss Control

11. 11 3 Failure to Clearly State the Program’s Objectives and the Loss Control Policy 4 Failure to Recognize Loss Control as a Line Management Responsibility

12. 12 5 Failure to Measure the Effectiveness of the Program 6 Failure to Provide Adequate Training

13. 13 7 Failure to Control Losses After the Fact 8 Failure to Recognize the Economic Impact of Poor Safety

14. 14 9 Failure to Enforce Safety Rules Uniformly 10 Failure to Set Up an Accountability Factor for all Levels of Management

15. 15 MANAGEMENT LEADERSHIP Determine Safety Objectives Determine Safety Objectives Write a Safety Program Write a Safety Program Establish Safety Rules and Regulations Establish Safety Rules and Regulations Discuss Job Safety Topics in All Meetings Discuss Job Safety Topics in All Meetings Comment on Safety Performance Comment on Safety Performance Set a Good Example Set a Good Example

16. 16 HIDDEN COSTS Lost employee workdays Lost employee workdays Disruption of operations or delays in completing projects Disruption of operations or delays in completing projects Impaired ability to respond to requests for service Impaired ability to respond to requests for service Equipment loss, or loss of use Equipment loss, or loss of use Shaken public confidence Shaken public confidence Reduced employee morale Reduced employee morale Diversion of funds earmarked for other purposes to pay for losses Diversion of funds earmarked for other purposes to pay for losses Increased insurance premiums Increased insurance premiums

17. 17 OTHER FINANCIAL LOSSES The loss of your employee to injury The loss of your employee to injury Increased expenses for hiring and training a replacement employee Increased expenses for hiring and training a replacement employee Increased expenses for clerical time Increased expenses for clerical time Time lost to investigating the accident Time lost to investigating the accident

18. 18 Any unnecessary losses that arise from your public entity’s operations can seriously affect your operating budget Control potential losses by developing a comprehensive Safety Program

19. 19 Development and implementation of a Safety Program takes : TIME EFFORT MONEY Future costs savings can compensate for the initial investment Future costs savings can compensate for the initial investment

20. 20 BASICS OF A SAFETY PROGRAM ASSIGNMENT OF RESPONSIBILITY ASSIGNMENT OF RESPONSIBILITY HAZARD IDENTIFICATION HAZARD IDENTIFICATION COMMUNICATION & TRAINING COMMUNICATION & TRAINING ACCIDENT INVESTIGATION ACCIDENT INVESTIGATION WORK RULES & ENFORCEMENT WORK RULES & ENFORCEMENT

21. 21 MANAGEMENT POLICY State the goals of the program State the goals of the program State management’s expectations about employee performance State management’s expectations about employee performance Employees should receive a copy of the policy Employees should receive a copy of the policy Employees should be trained in requirements of the policy Employees should be trained in requirements of the policy Managers or supervisors must ascertain that employees understand the policy Managers or supervisors must ascertain that employees understand the policy Document the issuance and training in the policy Document the issuance and training in the policy

22. 22 Assignment of Responsibility Delegate to key personnel Delegate to key personnel Emphasize to employees their responsibilities Emphasize to employees their responsibilities Proper selection of the candidate Proper selection of the candidate

23. 23 Hazard Identification Pro-Active Activities Risk Management Assessment Risk Management Assessment Self Inspections Self Inspections Job Hazard Analysis Job Hazard Analysis

24. 24 Risk Management Assessment Loss Exposures - Possibilities of a loss Loss Exposures - Possibilities of a loss 4 categories: property, net income, liability, personnel 4 categories: property, net income, liability, personnel Hazard- Condition or circumstance which makes a loss more likely or more severe Hazard- Condition or circumstance which makes a loss more likely or more severe Loss control measures – Reduce or prevent Loss control measures – Reduce or prevent

25. 25 Risk Management Assessment Risk Management Assessment

26. 26 Types of Public Entities Municipalities Municipalities Utilities – Water, Sewer, Electric, Gas Utilities – Water, Sewer, Electric, Gas Housing Authorities Housing Authorities Transit Authorities Transit Authorities Airport Authorities Airport Authorities Regional Planning Authorities Regional Planning Authorities

27. 27 Planned Departmental Inspections WHY ? Safety and health of employees Safety and health of employees Safety and health of the public Safety and health of the public Legal and moral obligation Legal and moral obligation

28. 28 Types of Inspections Everyday “eye ball” Everyday “eye ball” Departmental Departmental Management Audits Management Audits Critical Parts Critical Parts Vehicles & Equipment Vehicles & Equipment Outside inspections Outside inspections

29. 29 EXAMPLES OF COMMON HAZARDS Housekeeping and Sanitation Housekeeping and Sanitation Tools and Equipment Tools and Equipment Material Handling and Storage Material Handling and Storage Motorized vehicles Motorized vehicles Personal and Protective Equipment Personal and Protective Equipment Fire Protection Fire Protection Walking & Working Surfaces Walking & Working Surfaces Exits Exits

30. 30 INSPECTION GUIDELINES Plan the inspection Plan the inspection Be systematic and complete Be systematic and complete Record the result of the inspection Record the result of the inspection Take corrective action promptly Take corrective action promptly Follow up Follow up Consider training & outside sources for special exposures Consider training & outside sources for special exposures

31. 31 DOCUMENTATION Development of checklists Development of checklists Safety Hazard Reports Safety Hazard Reports Employee Report of Hazard Employee Report of Hazard Evidence of the program Evidence of the program

32. 32 JOB HAZARD ANALYSIS JOB HAZARD ANALYSIS Selection of job to be analyzed Selection of job to be analyzed Break job down into tasks or activities performed Break job down into tasks or activities performed Observe how each task or activity is performed Observe how each task or activity is performed Identify hazards of each task or activity Identify hazards of each task or activity Develop improvements to eliminate or reduce the hazards Develop improvements to eliminate or reduce the hazards

33. 33 Communication and Training Safety Committees Safety Committees Safety Training Safety Training Safety Meetings Safety Meetings Safety Incentive Programs Safety Incentive Programs Safety Awareness Safety Awareness Safety Visuals Safety Visuals Wellness Programs Wellness Programs

34. 34 Safety Committees Employee participation Employee participation Channel for suggestions & ideas Channel for suggestions & ideas Improves management/employee relationships Improves management/employee relationships Determine hazardous conditions Determine hazardous conditions Make recommendations Make recommendations

35. 35 TRAINING All new employees need training on your policies and procedures All new employees need training on your policies and procedures Existing employees need skills practice as well as updates in procedural changes or changes in the law Existing employees need skills practice as well as updates in procedural changes or changes in the law

36. 36 BENEFITS OF TRAINING Training can make new employees productive more quickly Training can make new employees productive more quickly Training can improve the performance of current employees who may just be performing marginally Training can improve the performance of current employees who may just be performing marginally Training can reduce operational disruptions and equipment damage Training can reduce operational disruptions and equipment damage

37. 37 Document all Training Individual training records should include: Individual training records should include:  Instructor name, title, rank  Date, time, location  Trainee name, rank, title  Copy of course description, materials or training outline  Trainee’s performance during training(optional)

38. 38 RESULTS OF FAILING TO PROVIDE ADEQUATE TRAINING Liability Claims Employee Injuries Equipment/Property Damage

39. 39 AWARDS & INCENTIVES Tool for promoting and maintaining a successful program Tool for promoting and maintaining a successful program Recognition of employees and supervisors Recognition of employees and supervisors Encouragement to perform well consistently Encouragement to perform well consistently Maintain employee commitment Maintain employee commitment to the program to the program

40. 40 TYPES OF AWARDS Managers/Supervisors Certificates/plaques Certificates/plaques Press release Press release Articles in newsletters Articles in newsletters Bonus program Bonus program Assignment to safety committee Assignment to safety committeeEmployees Promotional articles Promotional articles Articles in newsletters Articles in newsletters Compensatory time Compensatory time Recognition on bulletin boards, newsletters, awards ceremony Recognition on bulletin boards, newsletters, awards ceremony

41. 41 ACCIDENT / LOSS INVESTIGATION INVESTIGATE ALL LOSSES INVESTIGATE ALL LOSSES INVESTIGATE LOSSES IMMEDIATELY!! INVESTIGATE LOSSES IMMEDIATELY!! ASSIGN RESPONSIBILITY FOR THE INVESTIGATION ASSIGN RESPONSIBILITY FOR THE INVESTIGATION COMPLETE A LOSS REPORT COMPLETE A LOSS REPORT

42. 42 SIX STEP INVESTIGATION SECURE THE SCENE OF THE LOSS. SECURE THE SCENE OF THE LOSS. OBTAIN INFORMATION ON THE LOSS. OBTAIN INFORMATION ON THE LOSS. DETERMINE THE CAUSES OF THE LOSS. DETERMINE THE CAUSES OF THE LOSS. DETERMINE CORRECTIVE ACTION. DETERMINE CORRECTIVE ACTION. TAKE CORRECTIVE ACTION. TAKE CORRECTIVE ACTION. FOLLOW-UP ON THE CORRECTIVE ACTION. FOLLOW-UP ON THE CORRECTIVE ACTION.

43. 43 CORRECTIVE ACTION Supervisor/Manager must know all the facts Supervisor/Manager must know all the facts Talk to employee and witnesses Talk to employee and witnesses Question the nature of the employee’s actions before the accident Question the nature of the employee’s actions before the accident Supervisor should attempt to collaborate with the employee Supervisor should attempt to collaborate with the employee Help the employee understand the review process and the corrective action Help the employee understand the review process and the corrective action Document corrective action discussion Document corrective action discussion

44. 44 TYPES OF CORRECTIVE ACTIONS CoachingRetraining Suspension or Discharge Reassignment

45. 45 MANAGING LOSSES Determine Accident Causes Determine Accident Causes Identify Loss Trends or Patterns Identify Loss Trends or Patterns Initiate Corrective Action to Prevent Similar Occurrences Initiate Corrective Action to Prevent Similar Occurrences Measure Effectiveness of Safety Program Measure Effectiveness of Safety Program Identify Program Element Deficiencies Identify Program Element Deficiencies

46. 46 WC Claims Management Understand the laws Understand the laws Establish internal controls Establish internal controls Report,Investigate, Evaluate Injury claims Report,Investigate, Evaluate Injury claims Process claims and administer benefits Process claims and administer benefits Manage medical treatment protocol Manage medical treatment protocol Implement Light Duty programs Implement Light Duty programs Monitor Claims Monitor Claims Obtain support for program Obtain support for program Evaluate the program Evaluate the program

47. Work Rules and Enforcement Avoid generic or canned rules Avoid generic or canned rules Department specific Department specific Consistency of enforcement and disciplinary actions Consistency of enforcement and disciplinary actions

48. 48 Employee SUPERVISION Top-Down commitment to be successful Top-Down commitment to be successful Give supervisory authority for enforcing the program Give supervisory authority for enforcing the program Supervisory responsibilities defined in the policy Supervisory responsibilities defined in the policy Success depends on how well managed are the employees and their activities Success depends on how well managed are the employees and their activities

49. 49 BASICS OF A SAFETY PROGRAM ASSIGNMENT OF RESPONSIBILITY ASSIGNMENT OF RESPONSIBILITY HAZARD IDENTIFICATION HAZARD IDENTIFICATION COMMUNICATION & TRAINING COMMUNICATION & TRAINING ACCIDENT INVESTIGATION ACCIDENT INVESTIGATION WORK RULES & ENFORCEMENT WORK RULES & ENFORCEMENT

50. 50 Benefits of a Safety Program Benefits of a Safety Program Reduce Employee Injuries Reduce Employee Injuries Reduce Property and Liability Losses Reduce Property and Liability Losses Protect financial resources Protect financial resources Provide a safe community for our citizens Provide a safe community for our citizens

51. 51 WEBSITE RESOURCES www.amicentral.org www.amicentral.org www.amicentral.org www.alalm.org www.alalm.org www.alalm.org www.riskinstitute.org www.riskinstitute.org www.riskinstitute.org www.icma.org www.icma.org www.icma.org www.pescala.org www.pescala.org www.pescala.org www.nlc.org www.nlc.org www.nlc.org www.primacentral.org www.primacentral.org