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
In the context of organizational risk, the term “risk” is appropriately defined as
the possibility of positive opportunities and outcomes as well as negative
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
