Integrated Risk Management36 – Month Final Status Report

Christian DeVoll, Risk Management SpecialistJune 2013

IRM Benchmark PolicyReduce Member losses

Loss rate comparison for fixed route: (est. 2008, amended December 2012) - On board injuries, pedestrian events, and collisions

Member Satisfaction Survey (omitted on 5/26/2012)

Assessment CriteriaQuantitative Return on investmentLoss Rates (fixed route liability only)Qualitative DeliverablesOn Site Services

Quantitative BenchmarkingBenchmarking period:

July 1, 2007 – June 30, 2009July 1, 2009 – December 31, 2012Final report will be June 2013.

Loss ratesLosses x 1000 Miles

Qualitative Deliverables (last report out)

Individual Risk Assessments

Workers Compensation Review

Safety Committees and Preventability Guidelines

Best PracticesCoach Operator TrainingAccident Preventability

Serious Loss Analysis Reviews

Qualitative Deliverables (current)Worker’s Compensation Review

- Offered to all members- 8 elected to participate

Best Practices- Rural Boarding & Alighting- Transit Operations: Rules of Conduct and Transit

Exclusion - Digital Recording System on Street Vehicles

Operator Development Course

Qualitative Deliverables

Training/ResourcesReasonable Suspicion Drug & Alcohol

Training for Supervisors

Network Security Reviews – ITS Architecture

Emergency Management, Safety and Security Projects– Whatcom, Skagit, Grant, Valley, Link, Pierce

Qualitative DeliverablesCNG Audit – Valley Transit

ADA Reviews of Train Stations – Skagit Station and Centennial Station

Serious Loss Case Review - VideosPull the Maxi

Rock n’ Roll

See it Sooner

IRM Costs2007 Board approved $1.3 million for IRM Program

2008 spent $500,000 on Select Inc.

Wages and Benefits and Travel Expenses

$400,000 (March 2009 – December 2012)

• Cost of IRM to date $900,000 (2007 – December 2012)

Challenges of the ProgramSystem wide communication

Intent of the program

Time managementOver 200 site location visits in 4 year period

Best Practice Policy Adoption of Loss Prevention Policy

Revising best practice policy document and complete system wide review

Loss Rate Comparison

2007 - 2009 average 33.78 (Control Period)

*2009 - 2011 average 25.91 (Comparable Period)

Member’s average – above or below?

*Loss data as of 12/31/2012

2007 – 2009 2009-2011 Pool Avg. 33.78 (control) 25.91 (comparable)Large 34.02 27.08Medium 24.97 21.09Small 31.51 27.76

Loss Rate Comparison

Large Sized Agencies

Medium Sized Agencies

Small Sized Agencies

Event Loss Rate Capped at $10,000as of December 31, 2012

Event Type 2007-2009 (Base Period) 2009-2012 (Review Period)

Pedestrian Events $92,684 $62,615

On Board Injury Events $427,315 $438,426

Collision Events $2,085,993 $1,511,623

Total $2,605,993 $2,012,664

Current IRM Savings $593,329 + Indirect Program Savings (Workers Comp, Training, Risk Services, Networking, etc.)

Indirect BenefitsIRM Cost Member Benefit

Operator Development $9,000 to purchase for each Course - $35,000 member x 25 = $225,000

Workers Comp Consultation 7 members x $10,000 =

$30,000 $70,000 (Grays Harbor, BFT, Clallam, Pierce, Spokane, C-Tran)

Training Video Vignettes (3) $750 for (3) videos x 25 members $30,000 = $56,250

Reasonable Suspicion $1,500 per class = $7,500 Training - (in house) Pullman, Grays Harbor, C-Tran, Intercity,

Link

Indirect BenefitsIRM Cost Member Benefit

Risk Management Assessments $800 each x 25 members +

(in house) follow up visits = $20,000+

Emergency Management Market price for 4 members

Drills - $27,500 $40,000

ITS Architecture (Network Market price for 25 members

Security Reviews) = $3,650 $150 x 38hrs x 10 = $57,000

ADA Reviews of Train Stations Market price = $10,000

$2,500

Total IRM Costs - $122,500 Market Costs - $485,750

Cost Savings(March 2007 – December 2012)

Current:

Approved Amount $1.3 million

Select Inc. - $500,000

Wages, Benefits - $400,000

Balance $400,000

Indirect:

Unrealized Member Benefit $485,750

IRM Budget Expenses $122,500

Balance $363,250

Direct: Loss Rate Adjustment $593,329

From this date forward, the IRM Project will produce a ROI in excess of the Boards’ approved funding.

Future Recommendations for IRM

Incorporating IRM into existing loss prevention program at WSTIP (Incorporated in 2013 Budget)

Focus on Serious Loss Analysis to identify high exposure incidents to reduce risk to the pool (Ongoing)

To explore technical innovations that will create awareness to reduce risk (Velvac Camera System)

Continued development of risk management training videos (next video summer of 2013: Wheelchair and Mobility Device Securement)

Recommendations cont’d On going development of Best Practices for Risk

Reduction (Next Best Practice: Affects and Mitigation of changes to ADA for transportation providers)

Assist awareness and communication to individual member's safety committees (Ongoing)

Identify and address individual member’s Risk Management expectations (Ongoing)