Module 6 Reinforcement Activity Risk Management Probability of Occurrence High Medium Low Magnitude of Impact Risk Management #1 The risk matrix helps HR professionals visualize an assessment of a particular risk. The assessment must consider (1) how probable it is that the event will occur and (2) the severity of the impact if the event should occur. How would you assess the risk of violence in the workplace committed by an employee or customer? Assessments will vary depending on the characteristics of your own workplaces. In general, workplace violence occurs rarely but has a very high magnitude of impact. For contrast, assess the risk posed by an employee coming to work late once. In general, this is a more frequently occurring risk, but its impact in most workplaces is low. (However, the impact of repeated tardiness could be much higher because it will affect other employees and productivity.) The concept of the risk matrix can be helpful when HR professionals are trying to decide strategies to manage certain risks, such as those on the following slides. © SHRM

Module 6 Reinforcement Activity Risk Management The vice president of HR for a mid-sized bank has listed four risks from the organization’s employment practices and from employees themselves: Employees may commit fraud. Employees may sue the company for violating their legal rights. Employees may pose a risk to fellow employees in the workplace. Employees may expose the bank to claims because they are not sufficiently skilled to explain more sophisticated investment products to customers.   Suggest possible prevention strategies for each risk. Risk Management #2 Think about risk management strategies and suggest possible prevention strategies for each one. Advance to the next slide © SHRM

Module 6 Reinforcement Activity Risk Management Prevention Strategies Employees may commit fraud. Risk Management #2 Think about ideas for risk management strategies aimed at this risk Advance to the next slide to show suggested feedback © SHRM

Module 6 Reinforcement Activity Risk Management Prevention Strategies Employees may commit fraud. Employ hiring checklists to ensure that references are confirmed and cross-check potential employees in criminal databases. Work with internal auditors to establish control procedures and auditing schedules. Train managers to recognize signs that employees may be committing fraud. Rotate employees among different jobs every three months. Risk Management #2 See suggested responses on slide Advance to the next risk © SHRM

Module 6 Reinforcement Activity Risk Management Prevention Strategies Employees may sue the company for violating their legal rights. Risk Management #2 Think about ideas for risk management strategies aimed at this risk Advance to the next slide to show suggested feedback © SHRM

Module 6 Reinforcement Activity Risk Management Prevention Strategies Employees may sue the company for violating their legal rights. HR should be sure that the company’s employment policies and handbooks are up-to-date and nondiscriminatory. Employees should receive training on company policies and processes. HR should have a process to deal with employee complaints and resolve them before they become an issue. The company should have EPLI to protect it in the event of litigation. Risk Management #2 See suggested responses on slide Advance to the next risk © SHRM

Module 6 Reinforcement Activity Risk Management Prevention Strategies Employees may pose a risk to fellow employees in the workplace. Risk Management #2 Think about ideas for risk management strategies aimed at this risk Advance to the next slide to show suggested feedback © SHRM

Module 6 Reinforcement Activity Risk Management Prevention Strategies Employees may pose a risk to fellow employees in the workplace. Supervisors should be trained to recognize behavioral problems. The EAP program should be utilized to help employees with problems. HR should institute a rigorous reference- checking program to screen out potentially violent offenders. The company should develop and communicate a zero tolerance policy toward violence. Risk Management #2 See suggested responses on slide Advance to the next risk © SHRM

Module 6 Reinforcement Activity Risk Management Prevention Strategies Employees may expose the bank to claims because they are not sufficiently skilled to explain more sophisticated investment products to customers. Risk Management #2 Think about ideas for risk management strategies aimed at this risk Advance to the next slide to show suggested feedback © SHRM

Module 6 Reinforcement Activity Risk Management Prevention Strategies Employees may expose the bank to claims because they are not sufficiently skilled to explain more sophisticated investment products to customers. Conduct a needs assessment to determine the skills that are needed to sell the investment products. Provide training for personal bankers. Develop marketing materials/sales tools that help explain the products. The company should have appropriate errors and omissions insurance to protect it in the event of litigation. Risk Management #2 See suggested responses on slide Advance to the next risk © SHRM

Module 6 Reinforcement Activity OSHA Inspection Priorities First Imminent danger Hazards that could cause death or serious physical harm Second Fatalities and catastrophes Incidents that involve a death or hospitalization of 3 or more employees Third Complaints Allegations of hazards or violations Fourth Referrals Referrals of information from other agencies Fifth Follow-ups Checks for abatement of violations Sixth Planned High-hazard industries or workplaces with high rates of injury and illness OSHA Inspection Priorities Review the concept of OSHA inspection priorities & advance to the next slide © SHRM

Module 6 Reinforcement Activity OSHA Inspection Priorities First Imminent danger Hazards that could cause death or serious physical harm Second Fatalities and catastrophes Incidents that involve a death or hospitalization of 3 or more employees Third Complaints Allegations of hazards or violations Fourth Referrals Referrals of information from other agencies Fifth Follow-ups Checks for abatement of violations Sixth Planned High-hazard industries or workplaces with high rates of injury and illness Boomtown Construction is hired to replace corroded oil pipelines for an oil refinery. An employee complains to a supervisor that the trench is dangerous and unstable. The supervisor takes no action, so the employee calls OSHA. OSHA Inspection Priorities Assign a priority to the case described Suggested feedback: First priority—imminent danger. There is reasonable certainty that a danger exists that could cause death or serious harm. © SHRM

Module 6 Reinforcement Activity OSHA Inspection Priorities First Imminent danger Hazards that could cause death or serious physical harm Second Fatalities and catastrophes Incidents that involve a death or hospitalization of 3 or more employees Third Complaints Allegations of hazards or violations Fourth Referrals Referrals of information from other agencies Fifth Follow-ups Checks for abatement of violations Sixth Planned High-hazard industries or workplaces with high rates of injury and illness Two employees for a commercial cleaning and window-washing service were fatally injured when they fell approximately 90 feet onto a cement courtyard. Both victims’ descent control devices and personal fall arrest systems were attached to a static line that failed. OSHA Inspection Priorities Assign a priority to the case described Suggested feedback: Second priority—catastrophes and fatal accidents. A fatality is automatically a second priority. © SHRM

Module 6 Reinforcement Activity OSHA Inspection Priorities First Imminent danger Hazards that could cause death or serious physical harm Second Fatalities and catastrophes Incidents that involve a death or hospitalization of 3 or more employees Third Complaints Allegations of hazards or violations Fourth Referrals Referrals of information from other agencies Fifth Follow-ups Checks for abatement of violations Sixth Planned High-hazard industries or workplaces with high rates of injury and illness Warehousing Central experienced a higher-than-normal injury and illness rate. It has a DART (Days Away from work, Restricted work activity, and job Transfer) annual total of 20 per every 100 full-time employees. OSHA Inspection Priorities Assign a priority to the case described Suggested feedback: Fourth priority—high-hazard industries. High-hazard industries, as characterized by higher levels of injuries and illnesses, are a fourth priority. © SHRM

Module 6 Reinforcement Activity OSHA Inspection Priorities First Imminent danger Hazards that could cause death or serious physical harm Second Fatalities and catastrophes Incidents that involve a death or hospitalization of 3 or more employees Third Complaints Allegations of hazards or violations Fourth Referrals Referrals of information from other agencies Fifth Follow-ups Checks for abatement of violations Sixth Planned High-hazard industries or workplaces with high rates of injury and illness Employees at Century Lumber Mill complain that mill equipment is not adequately protected and that the amount of sawdust in the air is causing irritation to workers. OSHA Inspection Priorities Assign a priority to the case described Suggested feedback: Third priority—employee complaints. Alleged violations reported by employees are a third priority. © SHRM