1. Module 6: Risk Management 8% PHR 7% SPHR 6-1 © SHRM Any student use of these slides is subject to the same License Agreement that governs the student's use of the SHRM Learning System materials.

2. Categories of Operational Risk Personnel risk (fraud and error) Physical assets (business environments) Technology (viruses) Relationships (lawsuits) External/regulatory (external fraud) HR role: Examine HR policies to prevent or mitigate loss and ensure business continuity. 6-2© SHRM

3. Risk Management Techniques Tools: Risk management software systems and risk management scorecard 6-3© SHRM

4. Continuity and Recovery Business continuity planning Identifies potential threats and impacts. Plans for disruption, interruption, or loss of business functions. Disaster recovery planning A set of guidelines and procedures to be used by an organization for the recovery of business operations due to disasters such as earthquakes, fires, terrorism, or epidemics. 6-4© SHRM

5. Insurance That Mitigates Risk Employment practices liability insurance (EPLI) –Protects against claims of discrimination, wrongful termination, and sexual harassment. Professional liability insurance –Protects directors, officers, employees, and the organization against claims of negligence in the performance of professional services. Worker’s compensation insurance –Protects workers in case of work-related injury or disease. 6-5© SHRM

6. Demand safety and health on the job. Request inspections. Have an authorized representative accompany an inspection. File a complaint. Be informed of workplace hazards. Employees must comply with OSHA standards and have a right to: Risk Management Legislation: OSHA 6-6© SHRM Employee rights Request action from the employer to correct hazards or violations. File a discrimination complaint. Receive training.

7. Keep employees informed. Keep employees safe. Correct violations. Allow employees to refuse abnormally dangerous work. Provide personal protective equipment. Provide medical surveillance. Provide training. Enforce rules and regulations. Employer responsibilities 6-7© SHRM Risk Management Legislation: OSHA Display OSHA poster. Provide copies of act and rules/regulations. Post OSHA citations. Notify employees of hazards. Maintain accurate records. Permit authorized employee representation during an OSHA inspection.

8. Which of the following is an example of an employer’s rights under OSHA? A.To apply to OSHA for a temporary or permanent variance from a standard B.To restrict inspectors and employee representatives from all areas that contain confidential information, processes, or equipment C.To refrain from enforcing rules that cause economic hardship for the organization D.To review and rule on employee protests regarding unsafe working conditions 6-8© SHRM

9. OSHA Regulatory Standards Emergency Exit Procedures Occupational Noise Exposure Machine Guarding Hazard Communication Control of Hazardous Energy—Lockout/ Tagout Bloodborne Pathogens Confined Space Entry Personal Protective Equipment Process Safety Management 6-9© SHRM

10. Occupational injury: Injury that results from a work-related accident or exposure involving a single incident. Occupational illness: Medical condition or disorder caused by exposure to environmental factors associated with employment. Injury and Illness Definitions 6-10© SHRM

11. Recording Criteria For both work-related illnesses and injuries: Death Days away from work Restricted work or transfer to another job Loss of consciousness Diagnosis by a licensed health-care professional Medical treatment beyond first aid 6-11© SHRM

12. An employer learns that a worker has fractured an arm on the job. Within what time frame must the employer complete OSHA Form 300? A.8 hours B.24 hours C.3 calendar days D.7 calendar days 6-12© SHRM

13. OSHA Inspection Priorities 6-13© SHRM

14. OSHA Violations 6-14© SHRM

15. Drug-Free Workplace Act Federal contractors with contracts of $100,000 or more and recipients of grants from federal government must: 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. 6-15© SHRM

16. Legislation Summary 6-16© SHRM LegislationRelevance to Risk Management Health and Safety Industrial Security Workplace Privacy OSH Act  Mine Safety and Health Act  Drug-Free Workplace Act  USA PATRIOT Act  Homeland Security Act  GINA  ADA  FLSA 

17. Safety Hierarchy 6-17© SHRM

18. Safety Responsibilities 6-18© SHRM

19. Safety Committees Encourage safety awareness. Motivate employees. Identify and correct hazards. Ensure that the safety committee does not become an employer-dominated labor organization—a violation of the NLRA. 6-19© SHRM

20. Influences on Accidents and Incidents 6-20 © SHRM

21. Classifying Incidents Unsafe acts Failing to use protective equipment Improper dress or use of equipment Performing unauthorized procedures Unsafe conditions Defective equipment Noise, heat, dust, or vibration Poor ventilation Improper lighting Unsafe floor surfaces 6-21© SHRM

22. Accident Prevention Design work sites and flow to manage risk. Assign safety specialists and line managers to committees. Analyze why accidents happen and have outside experts inspect working conditions. Provide updated job and safety training; test and document results. Provide safety rewards and recognition. 6-22© SHRM

23. Ergonomics Programs Ergonomics team Work-site analysis Job redesign Surveys/monitoring/feedback Training On-site exercise programs Budget Musculoskeletal disorders Computer vision syndrome Lower back strains Sick building syndrome Include: Reduce: 6-23© SHRM

24. Return-to-work programs require that injured employees A.return to less-strenuous jobs on a permanent basis. B.refrain from taking FMLA leave until they can return to work. C.stay on disability until they can perform all the duties of their current jobs. D.perform jobs that accommodate their current limitations. 6-24© SHRM

25. Health Hazards Current illnesses –Hepatitis B virus –Hepatitis C virus –HIV/AIDS –Tuberculosis Future pandemics –Disease that is new to the population –Human infection that causes serious illness –Agent that spreads easily 6-25© SHRM Infectious diseases

26. Environmental factors Physical –Heat, noise, vibration, air conditioning, radiation, ventilation, smoking, sanitary conditions, drinking water, workplace design Chemical –Dust, fumes, gases, toxic materials and chemicals, carcinogens, smoke Biological –Bacteria, fungi, insects 6-26© SHRM Health Hazards

27. Employee Assistance Programs Provide counseling for: Alcohol and drug abuse Emotional Family and marital Legal Career Workplace violence Financial EAP options: In-house Outside contractors Consortium Affiliate 6-27© SHRM

28. Employee Wellness Programs Wellness and fitness Nutrition and weight control Smoking cessation Stress reduction 6-28© SHRM

29. A written policy on substance abuse benefits the organization because A.it’s a deterrent to absenteeism and tardiness. B.supervisors are more willing to confront employees with impaired performance. C.it fulfills compliance with state and local laws and ordinances. D.top management does not have to deal with issues related to drug abuse. 6-29© SHRM

30. Drug Testing Categories 6-30© SHRM

31. Drug Intervention Strategies 6-31© SHRM

32. Security Measures Security guards Preventive audits Identification and external control systems —Fingerprints, magnetic cards Structural barriers —Gates, fences Security hardware —Alarms, sensors 6-32© SHRM

33. Fraud Control Practices Inventory counts Fraud hotlines Sound auditing procedures Video surveillance Dollar-limit authority 6-33© SHRM

34. Risk Analysis Probability Virtually certain Highly probable Moderately probable Improbable Vulnerability = Degree of probability that loss will occur + Severity of impact Severity Fatal Very serious Moderately serious Negligible 6-34© SHRM

35. Emergency Response Plan Guidelines Involve senior management. Create a team. Set priorities. Identify resources. Communicate the plan. Keep the plan up-to-date. Test the plan. 6-35© SHRM

36. Causes of Workplace Violence Reduce stress by giving employees a vehicle to express concerns. Reduce inappropriate responses by checking employee references and monitoring behavior. Reduce opportunity by maintaining a zero tolerance policy for weapons and violence. Violence = Stress + Inappropriate responses + Opportunity 6-36© SHRM

37. Government Responses to Terrorism USA PATRIOT Act Department of Homeland Security National Response Framework 6-37© SHRM

38. Protection of Proprietary Information 6-38© SHRM Identify proprietary information. Use confidentiality and nondisclosure agreements. Secure trade secrets. Confine intellectual knowledge on “need-to-know” basis. Provide training to employees about the organization’s plan. Recognize insider/outsider threats.

39. Technology Security Risks Unauthorized access to data Virus downloads Social engineering 6-39© SHRM Organizational policies for accessing and using technology in the workplace help to mitigate security risks.