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Risk Management User Group Wednesday, May 18, 2004.

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Presentation on theme: "Risk Management User Group Wednesday, May 18, 2004."— Presentation transcript:

1 Risk Management User Group Wednesday, May 18, 2004

2 Welcome Michael L. Hay, CGFM, CPPM

3 Meeting Agenda n 8:30-8:45– Welcome n 8:45-9:05– Workers Compensation Reform Ideas in the Legislature n 9:05-9:25 – Update, Business Continuity n 9:25-10:25– Return to Work n 10:25-10:40 – Break

4 Meeting Agenda n 10:40-11:10 – Lost, Damaged, & Destroyed Property Address n 11:10-11:30 –Address by the New Executive Director of SORM n 11:30-11:50 – Accident Investigation n 11:50-12:05 – Workers Comp. Cost Allocation Program n 12:05-12:20 – FY03 Safety Awards

5 Workers Compensation Reform Ideas in the Legislature Steven Pier SORM Legislative Liaison

6 Questions & Comments?

7 Where is Business Continuity in State Government Today Roger Thormahlen, CIC State Office of Risk Management

8 The Past n Began with the Texas Disaster Act of 1975 n Created the Emergency Management Council and Division of Emergency Management n Required a state disaster plan be prepared

9 In 1978 n The Interagency Disaster Recovery Planning Group was established n To provide state agencies the tools needed to develop their disaster plans

10 In 1989 n HB2736 established the Texas Department of Information Resources (DIR) and gave them the responsibility of the State Disaster Recovery Planning n Focused on the information technology function of an agency and upcoming Y2K technical conversion issues

11 In 2001 In 2001 n SORM assumed the point of the campaign for state agency business continuity planning n SORM turned to its risk management specialists to ask each agency during risk management consultations about the agencys business continuity plans

12 Business Continuity Planning Involves n The advanced planning and arrangements which are necessary to ensure continuity of the critical functions of an organization n Making sufficient agreed-upon preparations and designing and implementing sufficient agreed-upon procedures for responding to a disaster event

13 Expectations 1.Does the agency have a BC plan or COOP plan encompassing all of the agency critical functions? 2.Does the agency have a policy statement or directive from senior management establishing the value and its commitment to business continuity management (BCM)? 3.Has a Business Impact Analysis (BIA) been conducted to identify critical business functions of the agency?

14 Expectations (contd) 4.Have Recovery Time Objectives (RTOs) been established for the critical functions? 5.Have Recovery Point Objectives (RPO) been determined? 6.Has the agency given an order or priority to restoring the critical functions, personnel and personal property needs of the agency in the event of a disaster?

15 Expectations (contd) 7.Does the agency have a consolidated Continuity and Recovery Strategy across the enterprise? 8.What method best describes the agency strategy? 9.Do the strategies include a diagram and inventory description of current communication and data systems? 10.Does the agency have Emergency Response procedures to respond to disastrous events?

16 Expectations (contd) 11.Does each mission-critical business function within the agency have a recovery plan in place? 12.Has the agency identified critical support vendors and incorporated them into the call tree? 13.Does the agency have enterprise Business Continuity Awareness and Training? 13.Does the agency have enterprise Business Continuity Awareness and Training? 14.Has the Business Continuity Plan been tested?

17 Expectations (contd) 15.How and when was the plan tested? 16.Does the agency have Change Maintenance Process for the plan? 17.Does the agency have a designated person to speak to the media? 18.Does the agency have a call list to communicate with employees and critical vendors? 19.Does this call list include alternate phone numbers, addresses?

18 BCP Discipline Goals n SORMs primary goal is for the states BCP planning efforts to parallel accepted industry standards established by Disaster Recovery Institute International (DRII) n n And the federal governments Continuity of Operations Planning (COOP) model n COOP guidance can be found at FPC66 m under Resources

19 Tools Available Through SORM n SORMs BCP website

20 Tools (contd) n Generic forms to improve efficiency and effectiveness in the planning process n A network of knowledgeable persons from various state agencies who are willing to help in business continuity management n A SORM business continuity contact person to consult about planning and testing

21 Questions & Comments?

22 RETURN TO WORK Pat Crawford Texas Workers Compensation Commission

23 STAY AT WORK RETURN TO WORK WHATS BEST FOR YOUR BUSINESS & YOUR EMPLOYEES

24 n REDUCE WC COSTS! n CONTROL LOST TIME! ELIMINATE OPPORTUNITIES FOR FRAUD AND MALINGERING! ELIMINATE OPPORTUNITIES FOR FRAUD AND MALINGERING! n REDUCE WC COSTS! n CONTROL LOST TIME! ELIMINATE OPPORTUNITIES FOR FRAUD AND MALINGERING! ELIMINATE OPPORTUNITIES FOR FRAUD AND MALINGERING!

25 HIGHEST WORKERS COMPENSATION MEDICAL COST IN NATION

26 DOI-2000 MORE THAN 7 DAYS LOST TIME $10,700DOI-2000 $10,700

27 TEMPORARY INCOME BENEFITS DOI $ $305$9455 TEMPORARY INCOME BENEFITS DOI $ $305$9455

28 n $20,000 + AVERAGE COST n DOI 2000

29 PAY AN ADDITIONAL: $4000 FOR WORK HARDENING WORK CONDITIONING PROGRAM PAY AN ADDITIONAL: $4000 FOR WORK HARDENING WORK CONDITIONING PROGRAM

30 n REPLACEMENT COSTS n OVERTIME / WAGES n NEW & INEXPERIENCED EMPLOYEE n BUSINESS LOSS? n REPLACEMENT COSTS n OVERTIME / WAGES n NEW & INEXPERIENCED EMPLOYEE n BUSINESS LOSS?

31 n HEAL FASTER AND BETTER n RETAIN JOB SKILLS n RETAIN BENEFITS/SENIORITY n RETAIN LONG TERM PRODUCTIVE EMPLOYMENT n ECONOMIC STABILITY n HEAL FASTER AND BETTER n RETAIN JOB SKILLS n RETAIN BENEFITS/SENIORITY n RETAIN LONG TERM PRODUCTIVE EMPLOYMENT n ECONOMIC STABILITY

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33 n MORE SECONDARY COMPLICATIONS n MORE TREATMENT n POOR ATTITUDE TOWARD EMPLOYER n FINANCIAL BURDENS n MORE SECONDARY COMPLICATIONS n MORE TREATMENT n POOR ATTITUDE TOWARD EMPLOYER n FINANCIAL BURDENS

34

35 6 MONTHS OFF = 25% CHANCE OF EVER RETURNING TO PRODUCTIVE WORK 6 MONTHS OFF = 25% CHANCE OF EVER RETURNING TO PRODUCTIVE WORK

36 EMPLOYERS RESPOND TO INQUIRIES ABOUT RETURN TO WORK OPPORTUNITIES CARRIERS PROVIDE RETURN TO WORK COORDINATION EMPLOYERS RESPOND TO INQUIRIES ABOUT RETURN TO WORK OPPORTUNITIES CARRIERS PROVIDE RETURN TO WORK COORDINATION

37 n JOB (TASK) ANALYSIS/ASSESSMENTS n MEDICAL OR VOCATIONAL CASE MANAGEMENT n RECOMMEND ERGONOMIC ADJUSTMENTS n ? n JOB (TASK) ANALYSIS/ASSESSMENTS n MEDICAL OR VOCATIONAL CASE MANAGEMENT n RECOMMEND ERGONOMIC ADJUSTMENTS n ?

38 ELIMINATEUNNECESSARY LOST TIME

39 n POSTURE n LIFTING-CARRYING n ACTIONS-MOTIONS n EQUIPMENT-TOOLS n ENVIRONMENT -HOURS-POUNDS-PUSHING-PULLING--REPETITIONS-CHEMICALS--TEMPERATURE-NOISE-WET-DRY- n POSTURE n LIFTING-CARRYING n ACTIONS-MOTIONS n EQUIPMENT-TOOLS n ENVIRONMENT -HOURS-POUNDS-PUSHING-PULLING--REPETITIONS-CHEMICALS--TEMPERATURE-NOISE-WET-DRY-

40

41 CONSISTENCY CONSISTENCY BEST EFFORT EVERY TIME BEST EFFORT EVERY TIME WRITTEN POLICY WRITTEN POLICY ACCOUNTABILITY ACCOUNTABILITY ASSIGN RESPONSIBILITY ASSIGN RESPONSIBILITY ESTABLISH EXPECTATION ESTABLISH EXPECTATION CONSISTENCY CONSISTENCY BEST EFFORT EVERY TIME BEST EFFORT EVERY TIME WRITTEN POLICY WRITTEN POLICY ACCOUNTABILITY ACCOUNTABILITY ASSIGN RESPONSIBILITY ASSIGN RESPONSIBILITY ESTABLISH EXPECTATION ESTABLISH EXPECTATION

42 n BEFORE INJURY n CONTINUOUS n WORKERS COMP INFO n NO SURPRISES n CREATE THE EXPECTATION ! n BEFORE INJURY n CONTINUOUS n WORKERS COMP INFO n NO SURPRISES n CREATE THE EXPECTATION !

43 n SHARE OWNERSHIP n INVOLVE INJURED WORKERS IN OWN RECOVERY n HELP WITH DECISIONS n UNDERSTAND THE PURPOSE n SHARE OWNERSHIP n INVOLVE INJURED WORKERS IN OWN RECOVERY n HELP WITH DECISIONS n UNDERSTAND THE PURPOSE

44 n EDUCATION n REVIEW ACCIDENT HISTORY*! n TASK ANALYSIS*! n WORK ASSIGNMENTS - THEIRS AND OTHERS n EDUCATION n REVIEW ACCIDENT HISTORY*! n TASK ANALYSIS*! n WORK ASSIGNMENTS - THEIRS AND OTHERS

45 n EMPLOYEES n EMPLOYER n INSURANCE CARRIER NO SURPRISES=MORE TRUST n EMPLOYEES n EMPLOYER n INSURANCE CARRIER NO SURPRISES=MORE TRUST

46 n EXPECTATIONS n MONITOR CLAIMS ACTIVITIES n REQUEST RETURN TO WORK SERVICES n GET INVOLVED - HELP YOUR EMPLOYEE ! YOUR $ ! n EXPECTATIONS n MONITOR CLAIMS ACTIVITIES n REQUEST RETURN TO WORK SERVICES n GET INVOLVED - HELP YOUR EMPLOYEE ! YOUR $ !

47 n CONTINUOUS n AWAY FROM WORK n WHEN RETURN n MONITOR PROGRESS BECAUSE YOU VALUE YOUR EMPLOYEES! n CONTINUOUS n AWAY FROM WORK n WHEN RETURN n MONITOR PROGRESS BECAUSE YOU VALUE YOUR EMPLOYEES!

48 If you dont think you can make it into work tomorrow, give me a call.

49 n IMPROVE COMMUNICATION What can YOU do? n IMPROVE COMMUNICATION What can YOU do?

50 n LETTER EXPLAINING PROGRAM n TWCC-73 n JOB TASK ANALYSIS n COORDINATE PATIENCE-PERSEVERANCE & A TWO WAY STREET! n LETTER EXPLAINING PROGRAM n TWCC-73 n JOB TASK ANALYSIS n COORDINATE PATIENCE-PERSEVERANCE & A TWO WAY STREET!

51 SUPPORT STAY AT WORK/ RETURN TO WORK SKILLS & DEVELOPMENT NON-MEDICAL FACTORS SUPPORT STAY AT WORK/ RETURN TO WORK SKILLS & DEVELOPMENT NON-MEDICAL FACTORS

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53 n TEMPORARY OR NOT? n TRANSITIONAL n HEALING n ADA & FMLA n MEDICALLY APPROPRIATE n PRODUCTIVE n TASKS n TEMPORARY OR NOT? n TRANSITIONAL n HEALING n ADA & FMLA n MEDICALLY APPROPRIATE n PRODUCTIVE n TASKS

54 WITH EM - NOT TO EM -MEANINGFUL & PRODUCTIVE- WORK OF VALUE WITH EM - NOT TO EM -MEANINGFUL & PRODUCTIVE- WORK OF VALUE

55 You do not get injured workers well to get back to work. You do not get injured workers well to get back to work. You get them back to work to get well! -Richard Pimental You do not get injured workers well to get back to work. You do not get injured workers well to get back to work. You get them back to work to get well! -Richard Pimental

56 Pat Crawford Return to Work Education Coordinator (512) Texas Workers Compensation Commission Pat Crawford Return to Work Education Coordinator (512) Texas Workers Compensation Commission

57 Questions & Comments?

58 Break Time!!!! See You at 10:40am

59 Lost, Damaged, & Destroyed Property Michael L. Hay, CGFM, CPPM Director of Risk Assessment and Loss Prevention, & Information Resources - SORM

60 The new term for missing and stolen property is… Lost, Damaged or Destroyed (LDD)

61 American Society for Testing and Materials (ASTM) E Standard Practice for Assessing Loss, Damage, or Destruction of Property 1.Describes the various reasons for LDD 2.Defines terms specific to the standard 3.Describes how LDD analysis can be used to evaluate adequacy of property Control 4.Describes actions required when LDD is discovered

62 ASTM Standard Practice (contd) 5. Calculation of LDD Ratios (Overall and Immediate Values) 6. Describes acceptable ratios for various types of organization and properties 7. Describes reporting requirements and content 8. Describes which parts of the standard are firm criterion and which are guidelines STANDARD FOR GOVERNMENT IS 2% OF VALUE OR ITEMS STANDARD FOR GOVERNMENT IS 2% OF VALUE OR ITEMS

63 LDD n In the private sector, LDD is a pure property risk. n In the public sector, LDD is also a political risk. n 78 th Legislature, GAA, Art. IX, §11.03 –50% of value of LDD falling outside the ASTM standard shall be withheld from General Revenue appropriations of the agency.

64 LDD (contd) n The State has historically fallen below the 2% trigger n GASB 34/35 raised capitalization thresholds for personal & real property n The concept of value is relative

65 LDD (contd) n Historical Cost = Acquisition Cost + Associated Costs to Render an Asset to Service n Net Book Value = Historical Cost less Accumulated Depreciation

66 SORM LDD Benchmarks n Used Comptroller FY03 Data from the State Property Accounting System n Analyzed all LDD Disposal Methods for only SORM client agencies n Intended for benchmarking and internal control analysis only n Will be made available to agencies at the SORM website n Will be updated annually at the close of the fiscal year

67 SORM LDD Report Structure

68 LDD Total for Historical and Net Book

69 LDD Sorted by % Historical Cost

70 LDD Sorted by % Net Book Value

71 Questions & Comments?

72 Introduction to New Executive Director of SORM Jonathan D. Bow

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74 Questions & Comments?

75 Investigation Methods Investigation Methods Sam Stone SORM Training Specialist

76 MishapMishap Investigation&Analysis

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78 The Investigation Process

79 ADSO Class n Mechanics of an Investigation n Root Cause Analysis

80 Sequence of Events Z-Process Model

81 Example of Analysis Diagram

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83 Fishbone Analysis

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91 USEFUL TOOLS Bring Along Some Help n Checklist n Tape Measure n Camera n Attitude

92 Be Positive F act-Finding, Not Blame-Finding n Identify, Encourage, and Reward Safe and Proactive Work Practices n What Are People Doing Right? Catch people doing something right.

93 Corrective Action n ENGINEERING –Most Expensive –Most Permanent n ADMINISTATIVE –Procedure (or lack of procedure) –Training –Supervision n PERSONAL PROTECTIVE EQUIPMENT –What can be done to protect the employee?

94 Covered State Agencies Reported Injuries FY2003

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97 Questions & Comments?

98 WC Cost Allocation Program Stuart B. Cargile SORM CFO

99 Questions & Comments?

100 FY03 Safety Awards

101 Sustained Award n Small Agencies (100 FTEs or less) –No Reported Losses Three or More Years n Major Agencies –Lower IFR and cost per FTE for each of the past five years

102 Bronze Award IFR decrease of 10% to 29% below the average of the prior five years IFR.

103 Silver Award IFR decrease of 30% to 49% below the average of the prior five years IFR.

104 Gold Award IFR decrease of 50% or more below the average of the prior five years IFR.

105 Risk Management User Group Thank you for attending!


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