Risk Management Flashcards
A global organization expects external agency audits in the coming months and wants to adequately prepare for the audits. Which action would be most helpful?
conduct risk assessment to identify exposures and plan accordingly
An organizational disaster recovery plan typically refers to
procedures to recover business operations in the vent of a disaster.
Which of the following is an employee right provided by OSHA?
a. ) The right to have an authorized employee representative accompany an inspection
b. ) The right to refuse inspection
c. ) The right to apply to OSHA for a temporary variance from a standard
d. ) The right to apply to OSHA for a permanent variance from a standard
a.) OSHA provides employees with a number of specific rights, including the following:
The right to have an authorized employee representative accompany an inspection.
Under the General Duty Clause, each employee has the right to “a place of employment which (is) free from recognized hazards that are causing or are likely to cause death or serious physical harm.
Communication to employees about toxic substance in the workplace is regulated by the:
Hazard Communication standard, also known as Employee-Right-to-Know Law.
It requires an inventory of hazardous chemicals and evaluation of chemical hazards in the workplace and the communication of those hazards to employees through labeling, MSDS, training, orientation for new and transferred employees, and written hazard communication programs.
The Control of Hazardous Energy standards requires an employer to:
a. ) maintain an inventory of hazardous chemicals in the workplace
b. ) attach signs or labels to all pieces of equipment
c. ) implement lockout / tag-out procedures
d. ) provide employee training programs on hazardous materials
c.) In the Control of Hazardous Energy standards, OSHA has mandated strict regulations for affixing lockout or tag-out devices to prevent unexpected start-up of equipment or release of energy during servicing or maintenance operations.
The Confined Space Entry standard may require which of the following?
a. ) Rescue procedures
b. ) Injury history of all entrants
c. ) Ergonomic analysis of the space
d. ) Knowledge of infectious diseases
a. ) In the Confined Space Entry standard, the following requirements apply to all permit-required confined spaces:
- General entry controls, including entry permits, observers or attendants, and entry supervisors
- Pre-entry training requirements
- Emergency rescue personnel and procedures
- A written safe-entry program that is available for review by employees, their representatives, and OSHA officials.
Which of the following OSHA forms is posted at the end of the year:
a. ) OSHA’s form 200
b. ) OSHA’s form 300
c. ) OSHA’s form 300A
d. ) OSHA’s form 301
c.) OSHA’s form 300A; Summary of Work_related Injuries and Illness.
The summary, separate from Form 300, shows the total for the year in each category. At the end of the year, the organization posts the summary in a visible location for three months (Feb 1 - Apr 30).
Which of the following must be reported to OSHA?
a. ) An employee who leaves work with a migraine headache
b. ) A first-aid treatment given by the plant nurse
c. ) A work-related employee death
d. ) An employee who suffers from the flue
c.) A work-related employee death or the hospitalizatin of three or more employees must be recorded and reported to OSHA within eight hours.
In response to an employee complaint of a alleged violation, an OSHA compliance officer arrives unannounced at a manufacturing plant to conduct an inspection of an assembly line. The plant manager refuses to allow the compliance officer on the premises. The appropriate and legal OSHA response is to:
a. ) give 24-hour notice and return the following day.
b. ) file an OSHA citation pending inspection
c. ) subpoena relevant accident and inspection records
d. ) obtain a court-ordered search warrant
Employer have the right to
d.) Refuse an inspection and require OSHA to provide a search warrant before allowing access to the organization’s premises. OSHA may not conduct a warrant-less inspection without the employer’s consent. Without that consent, OSHA may go to court and obtain a search warrant based on administrative probable cause or evidence of a violation.
Based on an OSHA workplace inspection, an organization receives a citation for inadequate ventilation of potentially toxic fumes. The organization may challenge the citation by:
a. ) requesting judicial review within 30 days
b. ) filing a Notice of Contest with the OSHA Area Director within 15 working days
c. ) requesting an informal conference with the OSHA Area Director
d. ) appealing to the OSHA Area Director
Employers have the right to:
b.) File a Notice of Contest in writing with the OSHA Area Director within 15 working days of receipt of a notice of citation and proposed penalty.
Which of the following situations has the highest priority for an OSHA inspection?
a. ) An employee’s complaint of extremely long hours at a computer terminal without breaks.
b. ) Employee exposure to dust and noise
c. ) An on-site accident that results in the hospitalization of seven employees
d. ) An employee’s complaint of improper ergonomics
c.) OSHA Inspection Priority:
First: Imminent danger situations Second: Fatalities and catastrophes Third: Complaints Fourth: Referrals Fifth: Follow-ups Sixth: Planned or programmed investigations
A hazardous condition in the workplace that is causing or is likely to cause death or serious physical harm is an example of a:
a. ) serious violation
b. ) willful violation
c. ) repeat violation
d. ) de minimis violation
a.) Description of a Serious Violation:
Violation likely to cause death or serious injury due to hazard of which the employer was or should have been aware
example: Failure to provide training for employees digging trenches.
An employer that has a federal contract of $350,000 employs a carpenter who has been convicted of a criminal drug offense committed while on the job. What actions must the contractor take upon receipt of notice of the conviction?
Under the Drug-Free Workplace Act of 1988, federal contractors with contracts of $100,000 or more are required in the case of drug-related convictions, including:
- Notifying the federal contracting agency within ten days of receiving notice of any employee conviction of a criminal drug offense occurring with the workplace
- Imposing a sanction on a convicted employee or requiring satisfactory participation in a rehabilitation program
Genetic monitoring results of the biological effects of a toxic substance in a manufacturing plant must be reported to:
a. ) local public health agencies
b. ) the employees being monitored
c. ) the Department of Labor
d. ) health insurance providers
b.) The Genetic Information Nondiscrimination Act (GINA) of 2008, allows for genetic monitoring of the biological effects of toxic substances in the workplace, provided:
- the monitored employee must be informed of test results
- employer must provided written notice of the monitoring to the employee
- employee must voluntarily agree in writing unless such monitoring is required by federal, state, or local law
- the monitoring must conform to relevant federal or state law, including rules promulgated by OSHA
- employer must receive the results of the tests in aggregate terms that do not disclose the identity of specific individuals
A machinist who works t an organization that stresses productivity and meeting schedules is injured while working on a job that is behind schedule. These circumstances are an example of:
a. ) internal influences that could contribute to the incident
b. ) external influences that could contribute to the incident
c. ) human factors that could contribute to the incident
d. ) lack of proper machine training
a.) Internal influences refer to the nature of the task, the work group, management goals, organizational style, leader’s style and experience, employee orientation, and new or antiquated machinery.
An employee who fails to use safety googles on the job, resulting in eye irritation from fumes, is an example of
a. ) an unsafe condition
b. ) an unsafe act
c. ) a willful violation
d. ) an unrecognized hazard
b.) an accident that is under the control of employees, is classified as an unsafe act.
An employee who falls from unstable scaffolding while talking on a cell phone is an example of an:
a. ) unsafe condition
b. ) incident
c. ) unrecognized hazard
d. ) access control violation
a.) Unsafe floor surfaces / tripping hazard is an example of an unsafe condition.
The employees who will operate a new piece of machinery are given instructional materials and job aids to review and attend a demonstration of a safe operation. Which method of sensitizing employees to the importance of occupational safety is used in this example?
a. ) Goal-oriented training
b. ) Safety inspections
c. ) Incentive programs
d. ) Motivational programs
a.) A goal-oriented safety training is a preventive, work-related training, such as job instructions, basic safety, and accident prevention, is an effective method to sensitize employees.
An organization has a contest in which the department that has the highest percentage of employees trained in safety will receive an award. Which method of sensitizing employee to the importance of occupational safety is used in this example?
a. ) Goal-oriented training
b. ) Safety inspections
c. ) Incentive programs
d. ) Suggestion programs
c.) Some organizations design incentive schemes, awards, and competition programs that provide employees with inducements to engage in safe work programs that provide employees with inducements to engage in safe work behavior.
Well-planned and well-executed incentive /recognition programs communicate management’s commitment to the organization’s safety efforts.
Recently, several employees in the same department have experienced symptoms of cumulative trauma disorders (CTDs). To reduce the risk factors for the CTDs, the employer should:
a. ) wait for the outcome of any workers’ compensation claims
b. ) conduct periodic workplace surveys of employees
c. ) create recognition and safety programs
d. ) conduct a work-site analysis and modify ergonomics.
d.) CTDs, also known as Musculoskeletal disorders (MSDs), can be mitigated by improving workplace design, ergonomically designed equipment, frequent breaks, exercise programs, job rotation, and increases in job variety.
Reducing the risk of infection in the workplace is accomplished by all of the following except:
a. ) education
b. ) exposure control plans
c. ) selective hiring
d. ) personal protective clothing
c.) The risk of infection may be reduced by the vaccinations, personal protective clothing and equipment, exposure control plan, and education.
According to the ADA, the appropriate action for an employer dealing with employees who are HIV positive is to:
According to American with Disabilities Act, employees who have contracted HIV/AIDS are protected in their rights to keep their jobs as long as they can perform the essential functions with or without reasonable accommodation and do not pose a direct threat to health and safety.
An employer can reduce liability in the area of fetal protection by fully informing female employees of
hazards associated with the job.
Teratogens are products that affect a fetus but not the pregnant mother.
Teratogens
Products that affect a fetus but not the pregnant mother.
A formerly excellent production line employee had displayed a marked change in behavior during the past months, characterized by outbursts of emption and frustration and frequent requests to leave work early. In discussing the situation with the employee, the supervisor learns that the employee’s child is terminally ill. This employee would benefit from which employee assistance programs?
Family and/or martial counseling
What kind of behavior changes might an organization expect from the implementation of a physical fitness program?
- Less absenteeism
- Higher productivity
- Enhanced mental alertness
- better nutritional habits
- Less smoking
An organization requirement that employees show their badges on entering the building would be considered part of which measure:
a. ) Investigation
b. ) Identification and external control systems
c. ) Theft and fraud
d. ) Personal employee information security
b. ) the advantages of Identification and external control systems (closed-circuit surveillance):
- losses may be reduced or prevented
- when voice, fingerprint, or magnetic card systems are used to prevent illegal entry to the premises, security stations may not need to be staffed
Steps in conducting a security risk analysis:
To determine the degree of security needed, a security risk analysis is conducted:
- Determining organization’s vulnerabilities - (the security risk factors)
- Determining the degree of probability that the loss or risk will actually occur is determined by management
- assessing the impact or cost if a loss were to occur
- determining the ration of the cost of protection to the cost of probable loss
The economic rationale for most security programs is based on what type of considerations?
The economic rationale for most security programs is that the cost of protection should be substantially less than the losses incurred without the protection.
OSHA mandates having an emergency response plan for industries that:
a. ) use toxins
b. ) are located on a fault line
c. ) have experienced workplace violence
d. ) employe minors
a.) OSHA’s Process Safety Management standard requires employers who store, manufacture, or use highly hazardous chemicals, toxins, or reactive materials to have emergency response plans and provide training to their workers.
Which of the following is an internal cause of workplace violence?
a. ) Working with the public
b. ) Insensitive terminations
c. ) Guarding valuable property
d. ) Working in high crime areas
b.) Job terminations can be a major source of stress and are well-known cause of workplace homicides.
Which of the following is NOT a strategy for protecting organizational proprietary information?
a. ) Remind employees not to discuss organizational activities or display sensitive documents in public places.
b. ) Have all employees promise to safeguard organizational secrets
c. ) Place all organizational information on the intranet and Web sites
d. ) have contractors and employees sign confidentiality and nondisclosure agreements.
c.) placing all organizational information on the intranet and Web sites
With regard to technology security risks, which action would be most helpful?
a. ) Focus on protecting only the most confidential and proprietary information
b. ) Monitor employee use of the organization’s email system
c. ) Restrict access to certain computer information to personnel with a need to know
d. ) Ensure that information technology personnel have the necessary qualifications
c.) access to information housed on computers or servers should be restricted.
Accident
Undesired event that results in physical harm to a person or damage to property
Acquired Immune Deficiency Syndrome (AIDS)
Caused y the human immunodeficiency virus, which kills or damages cells of the body’s immune system by progressively destroying the body’s ability to fight infections and certain cancers.
Americans with Disabilities Act (ADA)
- Act the prohibits discrimination against qualified individual with a disability because of his/her disability.
- Requires a reasonable accommodation be made to a qualified employee, where such accommodation do nto impose an undue hardship on the employer
- Infectious diseases may be considered disabilities
Biometric verification
Use of an individual’s physical characteristics such as fingerprints and voice patterns to allow access to computers and database
Bloodborne pathogens
Microorganisms in human blood that can cause disease in humans
Bloodborn Pathogens standards
OSHA standards that requires employers to protect employees from potentially infectious materials
Building-related illness (BRI)
situation in which building occupants experience acute health and comfort effect that can be attributed directly to airborne building contaminants
Business continuity planning
Management process that identifies potential threats and impacts to an organization and provides a framework for ensuring that it is able to withstand disruption, interruption, or loss of normal business functions/operation.
Computer vision syndrome (CVS)
Vision problems such as headaches and blurred vision that are associated with video display terminals
Confined Space Entry standard
OSHA standard designed to protect workers in confined spaces from hazardous atmospheres, entrapments, or engulfment by liquids or small particles.
Constructive confrontation
Intervention strategy that focuses on job performance
Control of Hazardous Energy standard
OSHA standard that requires action so equipment cannot be activated (locked) and signs or labels (tagout) are attached to dangerous equipment that should not be activated
Corporate espinage
Act of spying or using spies to obtain secret or confidential information about a business competitor for commercial purposes.
Corporate sabotage
Act of deliberately hampering, subverting, or otherwise hurting the efforts of another organization.
Counseling
Form of intervention in which the emphasis is on the cause of a problem rather than on job performance.
De minimis violation
Violation of an OSHA standard that does not have a direct impact on employees’ safety and health on the job.
Directors’ and officers’ (D & O) liability insurance
Protects directors, officers, and corporations from claims such as shareholder class actions and SEC violations for fraud and mismanagement.
Disaster recovery plan
Guidelines and procedures to be used by an organization for the recovery of business operations when lost due to disasters such as earthquakes, fires, tornadoes, floods, hurricanes, terrorism, or epidemics.
Drug-Free Workplace Act, 1988
- Requires federal contractors with contracts of $100,000 or more as well as recipients of grants from federal government to certify they are maintaining a drug-free workplace.
- develop a policy that maintains a drug-free workplace
- specify penalties for policy violations
- provide a copy of the policy to employees
- establish a drug-awareness program
Emergency Exit Procedures (Means of Egress) standard
OSHA standard that provides guidelines for preparing an emergency action plan and includes specifications regarding exits and maintenance of emergency systems.
Employee assistance programs (EAPs)
Employer-sponsored programs that deliver a variety of health-related and personal services, which are provided by licensed professionals or organizations and offer employees a high degree of confidentiality.
Employment practices liability insurance (EPLI)
Insurance that provides employers with protection agains claims of discrimination, wrongful termination, sexual harassment, or other employment-related issues.
Epidemiology
Branch of medicine that investigates the causes and control of diseases in a population.
Ergonomics
Design of the work environment to address the physical demands experienced by employees.
Fair Labor Standard Act (FALSA)
Act that regulates employee overtime status, overtime pay, child labor, minimum wage, record keeping, and other administrative concerns.
Fetal protection policies
Attempts to protect the fetus from workplace hazards
General Duty Clause
Statement in Occupational Safety and health Act that requires employers subject to OSHA to provide employees with a safe and healthy work environment.
Genetic Information Nondiscrimination Act (GINA)
Act that prohibits discrimination against individuals on the basis of their genetic information in both employment and health insurance.
- Allows to genetic monitoring for biological effects of toxic substances
- Genetic information may be collected for wellness programs only
- such information must be in separate and confidential medical files
Hazard
Potential for harm, often associated with a condition or activity that, if left uncontrolled, can result in injury or illness.
Hazard Communication standard (Employee Right-to-Know Law)
OSHA standard that requires labeling, Material Safety Data Sheets, training, orientation for new and transferred employees, and hazard communication programs to inform employees of hazardous chemicals in the workplace.
Health
State of weel-being, free of illness or diseae.
Homeland Security Act. 2002
Act designed to secure the United States against terrorist attacks and other threats and hazards and ensure safe and secure borders.
- combined 22 federal agencies into one Super Agency - Homeland Security
Human Immunodeficiency Virus (HIV)
Virus that may lead to the development of the acquired immune deficiency syndrome (AIDS)
Independent medical exam
Legal term referring to an examination and assessment of an injured employee performed by an appropriately qualified, impartial doctor for the purposes of determining fitness for duty.
Job burnout
Depletion of physical/mental resources caused by excessive striving to reach an unrealistic work-related goal.
Lockout
Refers to installing a lock, disconnecting switch, or shutoff valve so equipment cannot be activated by mistake.
Machine Guarding standard
OSHA standard that provides general requirements for all machinery to protect operator ad other employees.
Material Safety Data Sheet (MSDS)
Must be provided by manufacturers for every hazardous substance; employers must evaluate chemicals and inform employees of hazardous properties.
Mine Safety and Health Act, 1977
- Established mandatory safety and health standards for underground and surface miners.
- Covers coal, metal, and nonmetal mines
- DOL has authority to issue penalties and citations
- Requires a minimum number of inspections each year
Multi drug-resistance TB (MDR-TB)
Form of tuberculosis that is resistant to current drug therapy.
Musculoskeletal disorder (MSD)
Disease caused by repetitive motion that affects muscles, nerves, tendons, ligaments, joints, cartilage, blood vessels, and spinal disks; also called cumulative trauma syndrome (CTS), cumulative trauma disorder (CTD), or repetitive stress injury (RSI)
National Institute for Occupational Safety and Health (NIOSH)
Agency that provides health and safety information.
Needle-stick Safety and Prevention Act
Revisions to Bloodborne Pathogens standards that requires employers to minimize employees’ exposure to blood through sharps injuries.
Occupational Illness
Medical condition or disorder, other than one resulting form an occupational injury, caused b exposure to environmental factors associated with employment.
Occupational injury
Injury that results form a work-related accident or exposure involving a single related accident or exposure involving a single incident in the work environment.
Occupational Noise Exposure (Hearing Conservation) standard
OSHA standard that requires employers to provide controls to reduce unsafe noise levels in the workplace.
Occupational Safety and Health Administration (OSHA)
Agency that administers and enforces the Occupational Safety and Health Act of 1970
Occupational Safety and Health (OSH) Act
1970
Act that established the first national policy for safety and health and continues to deliver standards that employers must meet to guarantee the health and safety of their employees.
Occupational Safety and health Review Commission (OSHRC)
Group that rules on contested OSHA citations.
OSHA’s Form 300
Log of Work-Related Injuries and Illness, used to classify work-related injuries and illnesses and to note the extent and severity of each case.
OSHA’s Form 300A
Summary of Work-Related Injuries and Illnesses; shows the totals of work-related injuries and illnesses for the year in each category.
OSHA’s Form 301
Injury and Illness iIncident Report; supplemental record that covers the details of each occupational injury or illness.
Other-than-serious-violation
Violation of an OSHA standard that would probably not cause serious physical harm or death.
Pandemic
Emergence of a disease new to the population’ the agent infects humans, causing serious illness, and spreads easily and sustainably.
Personal Protective Equipment standard
OSHA standard that protects employees form environmental, process, chemical, mechanical, or radiological hazards capable of causing injury or impairment and sets criteria for acceptable equipment designs.
Process Safety Management standard
OSHA standard aimed at preventing or minimizing the consequences of catastrophic releases of toxic, reactive, flammable, or explosive chemicals.
Professional liability insurance
Insurance that protects directors, officers, employees, and organizations against claims of negligence in the performance of professional services.
Proprietary information
Sensitive information owned by an organization that gives the organization certain competitive advantages.
Repeat violation
Violation of an OSHA standard that is repeated by an organization that gives the organization certain competitive advantages.
Return-to-work programs
Programs that offer employees less-strenuous jobs until they are fit to return to their regular jobs; also known as modified-duty programs.
Risk management
Identification; evaluation, and control of risk that may affect an organization, typically incorporating the use of insurance and other strategies.
Risk management scorecards
Tools used to make calculated judgments based on the probability that a circumstances will occur and the potential consequences.
Safety
Freedom from hazard, risk, or injury
Safety committees
Composed of workers from different levels and departments who are involved in safety planning and programs.
Security
Physical / procedural measures used to protect people, property, and information int eh workplace.
Serious violation
Violation of an OSHA standard that is likely to cause death or serious injury on the job
Sick building syndrome (SBS)
Situation in which building occupants experience acute health and comfort effects that appear to be linked to time spent in a building but no specific illness or cause can be identified.
Social engineering
Collection of manipulative techniques used to gain access to private or confidential information, often without face–to-face interaction.
State plans
Safety and Health policies and procedures that states have adopted ad that have been approved by OSHA.
Stress
Mental and physical condition that results from a real or perceived threat and the inability to remove it or cope with it.
Tagout
Signs or labels attached to equipment to warn others not to activate it.
Terrorism
Use of force or violence against persons or property in violation of the criminal laws of the United States for purposes of intimidation, coercion, or ransom.
Tuberculosis (TB)
Airborne contagious disease caused by a bacterial infection.
Unsafe acts
Incidents that result from unsafe behavior on the part of the employee, such as operating equipment at high speed.
Unsafe conditions
Mechanical or physical hazards that may lead to injury, such as defective equipment or improper lighting.
USA PATRIOT Act of 2001
Act that gives federal officials greater lead authority to take measures to combat terrorism.
- creates authorization to track and intercept communications
- grants federal power to trace/intercept terrorist communications
- Strengthen money-laundering laws/regs
- Tightens immigrations laws
- Provides increased funding for border patrol
Volnurabilities
Security risk factors
Wellness programs
Preventive health programs offered by employers designed to improve the health and physical well-being of employees both on and off the job.
Willful violation
Violation of an OSHA standard that is considered intentional.
Categories of Operational Risk
- Personnel risk (internal fraud, human error)
- Physical assets (loss of business environments/assets)
- Technology (viruses)
- Relationships (lawsuits)
- External/regulatory (external fraud)
HR role in Risk Management
The HR professional’s role in Risk Management is to participate in risk management by assessing risk and creating HR policies to prevent or mitigate loss and ensure business continuity.
Risk Management Techniques
- Assess risk
- Develop systems
- Implement programs
- Evaluate/modify systems
- Monitor efforts
Tools used to assess risk
- risk management scorecard
- Enterprise Risk Management (ERM) software systems
Steps in conducting a risk assessment:
- Review company goals and objectives
- Use environmental scanning and forecasting information
- Anticipate business opportunities
- Identify available resources
- Use software to house, track, and retrieve data
- Use advanced analytics and other tools for predictive insights
- Use qualitative and quantitative data collection
- Recognize and ensure compliance with differences in local, state and international laws and regulations
Primary steps in developing risk management systems:
- Determine success indicators - how and when to measure
- Identify key challenges and priorities
- Obtain top Management support
- Plan consistently with HR, operations, administration, finance, security, and etc.
- Develop RFP for needed services
- Coordinate third-party contracts negotiations and selection
- Research the practices of other organizations
- Determine the cost-effectiveness of systems and strategies
- Assign responsibilities for managing the system
- Ensure compliance with the laws
Implementing Risk Management Programs involves:
- Endorsement and cooperation form TOP
- Assignment of accountability and responsibility
- Integration of plans into operations plans
- Clear communication
- Protocols and step-by-step guidelines
- Training for all groups
- Concerns for safety and security
- Motivation and incentive system and awards
- Awareness and emergency response drills
- Documentation of efforts to meet all laws requirements
- Enforcement and consequences for violations
Monitoring Efforts Ensure:
- Internal investigations and surveillance are applied
- Tracking systems collect complaints and safety incident data
- Compliance with Federal / state requirements
- Managers are held accountable
- Business continuity, preserved data integration, and data storage
- Periodic reviews are scheduled
Why is it important to evaluate and modify the risk management plans:
- Review program success and failure indicators
- Collect and analyze qualitative and quantitive data
- Calculate “cost-benefit” ratio
- Reevaluate outcomes based on organizationals objectives and goals
- Use feedback to shore up practices and procedures
- Update systems to respond to any changes in legal requirements
What should be considered when conducting its own HR Risk Assessment.
- Pay practices through alternate channels and benefits plan continuation
- Disaster-based employee leaves of absence
- Unemployment compensation / insurance plans to notify employees of work site closures
- Employee health and safety issues while a work site is open
- Emergency evacuation procedures and protocols in coordination with the strategic disaster management plan
- Alternative work schedules, work sites, and telecommuting
- Staffing plans, vendors, and other assistance as needed
- Government reporting and compliance deadlines
- Communication plans whether a site is open or not
- Personnel and other HR records retrieval and protection
- Disaster training and periodic drills
- Collective bargaining planning where a union contract is in place
- Legal review of HR disaster and business continuity plans
- Ongoing review and enhancement of disaster the HR management plans
Factors to consider when purchasing en EPLI policy:
- Size of deductible/copayment
- Choice of counsel
- Application of administrative proceedings
- Claims-based vs. occurrence-based coverage
- Carrier change provisions
- Coverage scope vs. exclusions
- Punitive damages coverage
- Legal fees
- Maximum coverage per claim
Name different types of Professional Liability Coverages types:
- Professional liability insurance for errors and omissions
- Fiduciary status of HR professionals
- Corporate governance protection (
- Directors’ and Officers’(D & O) Liability Insurance (against shareholders class actions)
Workers’ Compensation Insurance
- provided by each state
- paid for by the employer
- designed to protect workers in case of a work-related injury or disease
- Experience rated (high rating of incidence - high rates; low rating - lower rates)
Key Federal Risk Management Legislations (8)
- Occupational Safety and Health (OSH) Act, 1970
- Mine Safety and Health Act
- Drug-Free Workplace Act
- USA PATRIOT Act
- Homeland Security Act
- Genetic Information Nondiscrimination Act (GINA)
- Americans with Disabilities Act (ADA)
- Fair Labor Standards Act (FLSA)
OSH Act Objectives
- Reduce safety and health hazards with safety standards
- Establish mandatory health and safety standards
- Create Occupational Safety and Health Review Commission (OSHRC) and National Institute for Occupational Safety and Health (NIOSH)
- Discover connections between diseases and work and establish criteria to ensure employee safety
- Implement training programs and program enforcement
- Implement reporting procedures to reduce injuries and disease
Employee Responsibility under the OSH Act
each employees “Shall comply with all occupational safety and health standards and all rules, regulations, and orders issued under the act.”
Employee Right under the OSH Act.
Employee rights under OSH Act is covered by General Duty Clause (Section 5a)):
- Demand safety and health on the job
- Request inspections
- Have an authorized representative accompany an inspection
- File a complaint
- Be informed of workplace hazards
- Request action from employer to correct hazards or violations
- File a discrimination complaint for acting as a whistleblower
- Receive training
Employer Responsibilities under the OSH Act.
General Duty Clause only covers items for which OSH Act has not established standards
Employer can be cited when:
- Failure to keep workplace free from hazards
- Hazard was recognized by employer or by the industry generally
- The recognized hazard could cause injury or death
- There was a feasible means to eliminate or reduce hazard
In general, the employer is responsible for keeping employees informed, healthy and safe
Employer rights under OSH Act.
Employer may:
- Monitor OSHA announcements of new regulations, participate in the rule-making process by attending public hearings
- Be active in industry safety associations
- Apply to OSHA for a temporary standards variance if needed
- Apply to OSHA for a permanent standards variance
Key Employer’s Responsibilities under OSH Act requirement of keeping employees informed.
- Display OSHA poster
- Making available copies of the act and relevant OSHA rules and regulations to employees upon request
- Post OSHA citations
- Maintaining accurate records
- Allow/permit authorized employee representation during an OSHA inspection
- Notifying employees who have been exposed to hazardous agents at levels exceeding the standards
Key Employers’ Responsibilities under the OSH Act under keeping employees healthy and safe requirement.
- Correct violations
- Allow employees to refuse abnormally dangerous work
- Provide personal protective equipment
- Provide medical surveillance of employee when required by OSHA standards(ex. hearing test)
- Provide training
- Enforce rules and regulations
Best known OSHA Regulator Standards (9)
- Emergency Exit Procedures
- Occupational Noise Exposure
- Machine Guarding
- Hazard Communication
- Control of Hazardous Energy - Lockout/Tag out
- Bloodborne Pathogens
- Confined Space Entry
- Personal Protective Equipment
- Process Safety Management
Under OSH Act, what must be tracked (record-keeping requirements)
For both work-related illness and work-related injuries:
- Death
- Days away from work
- Restricted work or transfer to another job
- Loss of consciousness
- Diagnosis by a licensed health-care professional of significant injury/illness
- Medical treatment beyond first aid
OSHA 300 Log
Log of Work-Related Injuries and Illnesses
- used to classify work-related injuries and illnesses and to note the extent and severity of each case
- Provides details about what happened and how it happened
- Must be kept for each physical location
- Must log each recordable occupational injury/illness within seven (7) calendar days from the time you learn of it
- Death or hospitalization of three or more employees must be recorded and reported to OSHA within eight hours of event
OSHA 300A Form
Summary of work-related injuries and illnesses
- a separate summery of OSHA Form 300 log
- shows total for the year in category
- company posts log in visible locations for three (3) months: Feb 1- Apr 30. (take down May 1 each year)
OSHA 301 Form
Injury and Illness Incident Report
- Keep record of occupational injuries and illnesses
- Must be completed within seven (7) calendar days for each recordable injury or illness
- Must be kept on file for five (5) years following the year to which it pertains
Name two most commonly used incidence rates
- Recordable Incident Rate
- DART (Days Away / Restricted or Transfer Rate)
How the Recordable Incident Rate (or IR for Incident Rate) is being calculated?
IR = Number of recordable cases x 200,000 / divided by Number of employee labor hours worked
DART (Days Away / Restricted or Transfer Rate)
Describes the number of recordable injuries and illnesses per 100 FT employees that resulted in days away from work, restricted work activity, and/or job transfer.
DART= Total number of DART incidents x 200,000 / Number of Employee Hours worked
National Emphasis Program (NEP)
NEP focuses on industries with high injury and illness rates and involves inspecting occupational injury and illness records by business and enforcing regulatory requirements when under-recorded.
OSHA Inspection Priorities
- Imminent danger situation
- Fatalities and catastrophes
- Complaints
- Referrals
- Follow-ups
- Planed or programmed investigations
OSHA Inspection Procedures
- Opening Conference
- Physical inspection
- Closing conference
Opening Conference in OSHA’s Inspection Conference.
- Why and scope of the inspection
- Purpose of the visit
- OSHA standards likely to apply
Physical Inspection during OSHA’s Inspection Precedure:
- Inspect work areas for compliance
- Check for OSHA posters
- Review Form 300 Log
- Review written safety program, training records, MSDS, inventory, and chemicals inventory
Closing Conference during OSHA’s Inspection Procedure
” a time for free discussion of problems and needs, a time for frank questions and answers.”
Upon receipt of a citation, the employer is required to:
- Post a copy of the citation
- may challenge the citation within 15 working days by sending a Notice of Contest to the Area Director
- seek an informal conference with the OSHA Area Director
- accept the citation and pay the fine
OSHA Violations
- Willful (up to $70,000)
- Serious (up to $7,000)
- Other-than-serious (up to $7,000)
- Repeat (up to $70,000)
- De Minimus (none)
OSHA Safety Goals (3)
- Improve workplace safety and health for workers
- Change workplace culture to increase awareness of standards
- Secure public confidence through excellence
Safety Hierarchy (order to address safety problems)
- Eliminate hazard
- Use safeguards
- Train and instruct
- Provide personal protection
Who makes estimates of the average costs of fatal and nonfatal injuries
National Safety Council (NSC)
What is the average cost of a work-related fatality?
According to NSC, using 2011 data - $1.39 million
Ways in which management’s commitment to safety and OSHA regulations can be demonstrated:
- Conducting needs analysis to define safety requirements
- Set safety objectives, goals, and policies
- Appoint a company safety coordinator
- Conduct safety inspections and audits
- Regularly review safety activity results
- Evaluate management based on safety performance
- Establish quality safety record-keeping
- include safety results in top management reportings
- Provide financial support for safety programs and expenses
- Hold managers responsible for safety training
- keep current with changing regulations and compliance
Responsibilities of line management in respect to safety and OSHA
- Show support of safety
- Monitor employees
- Recognize hazards
- report accidents and conduct follow- up actions
- Follow up with employees
- Accept ultimate responsibility for safety
Objectives of on-site safety inspections
- Spotlight unsafe conditions and equipment
- Focus on eliminating unsafe work practices and behaviors
- Reveal need for new safeguards
- Involve more employees in the Safety Program
Type of factors influencing workplace accidents and incidents
- Internal Influences
- External Influences
- Human factors
Internal Influances
- refer to the nature of task
- the work group
- management goals
- organizational style
- leader’s style and experience
- employee orientation
- machinery
External influences
- Economic and geographic conditions
- Labor force mix
- Governmental regulations
Human Factors:
- Attitudes, abilities, motivation and preferences of employees
- distractions
- skills
Classify Incidents
- Unsafe Acts (under the control of the employee)
- Unsafe Conditions (mechanical or physical under the control of the employer)
Steps in Accident Investigations
- Investigate the accident scene
- Interview injured employee, supervisor, and witness to the accident
- Complete the accident investigation report
Ways to design Safety Prevention into the workplace
- Design work sites and work flow with safety in mind to manage risk
- Assign safety specialists and line manager to committees
- Analyze why accident happen and have outside experts inspect working conditions
- Use external safety experts to evaluate safety and working conditions
Safety Training Program Guidlelines
- Provide necessary and adequate training
- Be sure training is up-to-date
- Check to see concepts are understood
- Keep safety training records
Steps in developing a Whistleblowing Policy
- Seek top management input on policy
- Develop a “reporting form”
- Communicate policy to employees through multiple media
- Provide a reporting procedure which does not require employee to to to their supervisor first
- Make possible for anonymous reporting
- Take prompt action and protect from retaliation
- Develop a formal investigation process
- Provide an appeals process
When developing a Safety Recognition and Incentive Programs, be careful to not:
- Develop a cash entitlement environment for safety
- Develop atmosphere where employee fail to report accident, due to incentives / rewards, etc.
Ergonomics Program include:
- Ergonomics team
- Work-site analysis
- Job redesign
- Surveys / monitoring / feedback
- Training
- On-site exercise programs
Ergonomics Programs reduce:
- Cumulative trauma disorders (MDSs)
- Computer vision syndrome (CVS)
- Lower back strains
- Sick building syndrome (SBS) and building-related illness (BRI)
OSHA consulting assistance include
- Appraisal of mechanical, physical, work practice, and environmental hazards
- Review of employer present job safety and health programs
- Conference on findings
- Written recommendations and agreements
- Training and assistance as needed
- Follow-up to ensure corrections are made
Infectious Diseases
Infectious Diseases are protected under ADA
- HIV/AIDS
- Hepatitis B, (requires vaccinations)
- Hepatitis C, (can be fatal)
- Bloodborne pathogens
- Tuberculosis
- Pandemics
Environment Health Hazards types
- Physical (Heat, noise, air conditioning, radiation, ventilation, smoking, sanitary conditions, drinking water)
- Chemical (dust, fumes, gasses, toxic materials and chemicals, carcinogens, and smoke)
- Biological (bacteria, fungi, and insects)
Toxic agents may enter the bod by:
- Inhalation through the lungs
- Absorption through the skin
- Ingestion through the sstomach
Examples of toxic agents
- chemicals
- vapors
- gasses
- fumes
Toxic agents may contribute to the following:
- Allergies and respiratory/pulmonary infections
- Headaches, dizziness, and nausea
- Cancers
- Reproductive disorders
- Blood, liver, and kidney diseases
- Damage to eyes, skin and mucous membrances
Employee assistance programs (EAPs)
- Alcohol and drug abuse counseling
- Emotional counseling
- Family and marital counseling
- Legal counseling
- Career counseling
- Workplace violence counseling
- Financial counseling
Types of EAPs
- In-house programs
- Outside contractors
lees popular:
- Consortium model (several organizations collaborate)
- Affiliate model (current vendor subcontracts)
Type of improvement Wellness program can include
- Physiological; (weight and body loss, greater strength and endurance, improved blood pressure and heart functions)
- Psychological; ( stress reduction, nervousness, depression, anxiety, low-self-esteem, burnout)
- ## Behavioral (absenteeism, tardiness, accident, higher productivity, less smoking, better nutrition habits)
Substance abuse facts
- substance abuse costs business $91 billion a year
- prescription drug abuse is not always detected with drug screen
- abusers are gravitating to small business for fear of testing
- drug sales have moved to the workplace
- abuse by women is increasing
- youth are comfortable with drug use
- have to be caution of ADA and FMLA protections
Symptoms of Drug Use
- careless work habits
- absenteeism
- aggressive behavior
- performance decrease
- increased accidents, tardiness, emotional out bursts
- introverted or manic personality
- impaired memory and illogical thinking
- difficulty getting along with others
- suspicious, secretive, or isolated behaviors
Drug testing categories
- Preemployment
- Reasonable suspicion and for cause
- Post-accident
- Post treatment
- Random
- Periodic
Drug Intervention Strategies
- Constructive confrontation (Focuses on job performance)
- Counseling (focuses on the cause of the problem)
Illegal Drug use may be protected / not protected
- Not protected by ADA and Rehabilitation Acts
- Protected by FMLA serious health condition
Security Programs and Measures
- Security Guards
- Preventive Audits
- Identification and external control systems
- Structural barriers (fences, gates, barbed wire, etc.)
- Security hardware (keys, alarms, sensor systems)
- Awarness training
Its goal is to isolate documents and events that do not fit within the normal course of business
Forensic Accounting
To assess the impact (cost) of a loss, include:
- cost of replacement of lost or damaged asset
- temporary replacement cost
- cost of losses due to disruption of normal activities
- loss of investment income
Levels of severity of a loss:
Level 1. Fatal
Level 2. Very serious
Level 3. Moderately serious
Level 4. Not serious or negligible
Economic rationale of a loss
The cost of protection should be substantially less than the losses incurred without protection.
A plan that describes the actions to be taken by all personnel to respond to situations at the facility that pose a threat to human health and the environment.
Emergency Response Plan
Natural disasters
- Flood
- Fire
- Hurricane
- Earthquake
- Tornado
- Volcano
Human Disasters
- Civil disasters
- Labor disputes
- Chemical events
- Explosion
- Blackouts
- Brownouts
- Workplace violence
An act that requires employers to notify government about storing, manufacturing, or use of highly hazardous chemicals, toxins, or reactive materials and to have emergency response plan and provide training to their workers.
EPA standard called Clean Air Act.
Guidelines for an Emergency Response Plan
- Involve senior management
- Create a team
- Set Priorities (Protect life, Eliminate injury risk, Save assets,Minimize loss, Resume operations)
- Identify resources
- Communicate the plan
- Keep the plan up-to-date
- Test the plan (rehearsals and drills)
Measures HR professional can take to prevent workplace violence
- employee background investigations
- no-firearms policies
- surveillance (where permitted by law)
- policies for violence
- help manage employee exit processes, financially and emotionally
Branch of medicine that investigates the causes and control of diseases in a population.
Epidemiology
OSHA standard that provides general requirements for all machinery to protect operator and other employees.
Machine Guarding standard
Tool used to make calculated judgments based on the probability that a circumstance will occur and the potential consequences.
Risk management scorecard
Preventive health programs offered by employers designed to improve the health and physical well-being of employees both on and off the job.
Wellness programs
Act that established the first national policy for safety and health and continues to deliver standards that employers must meet to guarantee the health and safety of their employees.
Occupational Safety and Health (OSH) Act
Microorganisms in human blood that can cause disease in humans.
Bloodborne pathogens
Injury and Illness Incident Report; supplemental record that covers the details of each occupational injury and illness.
OSHA’s Form 301
Established mandatory safety and health standards for underground and surface mines.
Mine Safety and Health Act
Collection of manipulative techniques used to gain access to private or confidential information, often without face-to-face interaction.
Social engineering
Guidelines and procedures to be used by an organization for the recovery of business operations when lost due to disasters such as earthquakes, fires, tornadoes, floods, hurricanes, terrorism, or epidemics.
Disaster recovery plan
Group that rules on contested OSHA citations.
Occupational Safety and Health Review Commission (OSHRC)
OSHA standard that requires employers to protect employees from potentially infectious materials.
Bloodborne Pathogens standard
OSHA standard that provides guidelines for preparing an emergency action plan and includes specifications regarding exits and maintenance of emergency systems.
Emergency Exit Procedures (Means of Egress) standard
Airborne contagious disease caused by a bacterial infection.
Tuberculosis (TB)
Intervention strategy that focuses on job performance.
Constructive confrontation
Programs that offer employees less-strenuous jobs until they are fit to return to their regular jobs; also known as modified-duty programs.
Return-to-work programs
Virus that may lead to the development of the acquired immune deficiency syndrome (AIDS).
Human immunodeficiency virus (HIV)
Requires federal contractors with contracts of $100,000 or more as well as recipients of grants from federal government to certify they are maintaining a drug-free workplace.
Drug-Free Workplace Act
OSHA standard that protects employees from environmental, process, chemical, mechanical, or radiological hazards capable of causing injury or impairment and sets criteria for acceptable equipment designs.
Personal Protective Equipment standard
OSHA standard that requires action so equipment cannot be activated (lockout) and signs or labels (tagout) are attached to dangerous equipment that should not be activated.
Control of Hazardous Energy standard
Security risk factors.
Vulnerabilities
Log of Work-Related Injuries and Illnesses; used to classify work-related injuries and illnesses and to note the extent and severity of each case.
OSHA’s Form 300
Caused by the human immunodeficiency virus, which kills or damages cells of the body’s immune system by progressively destroying the body’s ability to fight infections and certain cancers.
Acquired immune deficiency syndrome (AIDS)
Summary of Work-Related Injuries and Illnesses; shows the totals of work-related injuries and illnesses for the year in each category.
OSHA’s Form 300A
Agency that provides health and safety information.
National Institute for Occupational Safety and Health (NIOSH)
Form of tuberculosis that is resistant to current drug therapy.
Multidrug-resistant TB (MDR-TB)
OSHA standard that requires employers to provide controls to reduce unsafe noise levels in the workplace.
Occupational Noise Exposure (Hearing Conservation) standard
Form of intervention in which the emphasis is on the cause of a problem rather than on job performance.
Counseling
Safety and health policies and procedures that states have adopted and that have been approved by OSHA.
State plans
OSHA standard designed to protect workers in confined spaces from hazardous atmospheres, entrapment, or engulfment by liquids or small particles.
Confined Space Entry standard
Insurance that protects directors, officers, employees, and organizations against claims of negligence in the performance of professional services.
Professional liability insurance
Attempts to protect the fetus from workplace hazards.
Fetal protection policies
Physical/procedural measures used to protect people, property, and information in the workplace.
Security
Situation in which building occupants experience acute health and comfort effects that appear to be linked to time spent in a building but no specific illness or cause can be identified.
Sick building syndrome (SBS)
OSHA standard aimed at preventing or minimizing the consequences of catastrophic releases of toxic, reactive, flammable, or explosive chemicals.
Process Safety Management standard
OSHA standard that requires labeling, Material Safety Data Sheets, training, orientation for new and transferred employees, and hazard communication programs to inform employees of hazardous chemicals in the workplace.
Hazard Communication standard (Employee Right-to-Know Law)
Emergence of a disease new to the population; the agent infects humans, causing serious illness, and spreads easily and sustainably.
Pandemic
Statement in Occupational Safety and Health Act that requires employers subject to OSHA to provide employees with a safe and healthy work environment.
General Duty Clause
Situation in which building occupants experience acute health and comfort effects that can be attributed directly to airborne building contaminants.
Building-related illness (BRI)
Potential for harm, often associated with a condition or activity that, if left uncontrolled, can result in injury or illness.
Hazard
Products that affect a fetus but not the pregnant mother.
Teratogens
Identification, evaluation, and control of risk that may affect an organization, typically incorporating the use of insurance and other strategies.
Risk management
Act designed to secure the United States against terrorist attacks and other threats and hazards and ensure safe and secure borders.
Homeland Security Act
Management process that identifies potential threats and impacts to an organization and provides a framework for ensuring that it is able to withstand disruption, interruption, or loss of normal business functions/operation.
Business continuity planning
Mechanical or physical hazards that may lead to injury, such as defective equipment or improper lighting.
Unsafe conditions
Legal term referring to an examination and assessment of an injured employee performed by an appropriately qualified, impartial doctor for the purpose of determining fitness for duty.
Independent medical exam
Sensitive information owned by an organization that gives the organization certain competitive advantages.
Proprietary information
The assignment of a level of probability for all types of losses to which an organization may be exposed is known as
Volnurability analysis
What of the following substance abuse intervention approaches should companies use FIRST?
Constructive confrontation and counseling
The best first approach to substance abuse is constructive confrontation and counseling, because this is a positive combination designed to retain good employees and maintain the morale of all employees. Immediate dismissal and criminal charges would be used only in an extreme case, where the employee’s substance abuse problem endangers the lives of other employees. Disciplinary action and performance improvement plans do not address the problem, which is substance abuse; they focus on the symptoms, one of which may be poor job performance.
A company has a contest in which the work unit with the lowest accident rate each month is awarded a pizza lunch and two hours off with pay. What is a possible effect of this program?
Under-reporting of workplace injuries.
Incentives based on injury reports can be problematic because they can lead to under-reporting of workplace injuries by employees intent on achieving the incentive. Unless there is some simultaneous change in workplace conditions or training levels, injury reports should not increase as a result of the program. The program would not increase understanding of safety requirements, and it might actually harm collaboration and team work, such as sharing of safety tips and experiences, by emphasizing competition.
An HR manager who learns of a high incidence of cumulative trauma disorders among data entry personnel would MOST likely employ the services of an
Ergonomist
Cumulative trauma disorders (CTDs) can be caused by poor workplace design that results in excessive force, awkward positions, frequent repetitions, or excessive pressure. An ergonomist fits the worker to the job to reduce injuries by designing a workplace that minimizes or eliminates risk factors such as CTDs.
A de minimis OSHA violation is a
violation that does not affect safety or health directly.
According to OSHA, a de minimis violation is issued when there is a situation that has no relationship to safety or health. It is documented in the same way as a normal violation but not included on the citation. This type of violation occurs when an employer fails to post a citation within three days of receiving it or fails to issue an MSDS for a trial product.
OSHA compliance officers are conducting inspections in specific high-hazard industries. What circumstances warrant these inspections?
Planned/programmed investigations.
OSHA aims planned or programmed investigations at specific high-hazard industries or individual workplaces that have experienced high rates of injuries and illnesses.
MOST effective way in protecting proprietary information
Confidentiality and nondisclosure agreements.
Confidentiality and nondisclosure agreements will be most effective in protecting proprietary information. Banning Internet and e-mail access is impractical, and surveillance cameras would have a minimal impact. Prohibiting software installations is more for the protection of the computer network than for protection of proprietary information.
A wrist pain may be associated with what type of disorder?
Cumulative trauma disorders consist of a variety of symptoms associated with the repetitive nature of work. For example, assembly-line workers using the same repetitive motion to assemble products or computer operators working on keyboards and at video terminals often show symptoms such as wrist, hand, or neck pain.
Which employee group is MOST important to the successful completion of a safety needs assessment?
Management group.
Management involvement is critical because it creates a culture where safety is important and there is a commitment to a safe workplace.
What should an organization do to help its health and safety management program succeed?
Develop a reward and recognition plan to encourage employee participation.
In order for a health and safety management program to succeed, it must be proactive in nature and be built upon positive employee involvement. Only a reward and recognition plan meets those criteria.
A mail clerk has always been outgoing and hard-working, performing duties with a smile. However, lately he has phoned in sick several days, made numerous mistakes delivering the mail, and exhibited outbursts of anger. What is the MOST appropriate action to address this situation?
Constructive confrontation.
The mailroom clerk is exhibiting possible signs of substance abuse, but there is no clear evidence.Constructive confrontation usually focuses on job performance, documents instances of unsatisfactory performance, and may be combined with a progressive discipline strategy. In addition it may unearth the underlying problems affecting performance.
In the context of organizational risk, the term “risk” is appropriately defined as
the possibility of positive opportunities and outcomes as well as negative
