loss prevention, risk management and selling safety michael liebowitz risk and insurance management...
TRANSCRIPT
![Page 1: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/1.jpg)
Loss Prevention, Risk Management and Selling Safety
Michael Liebowitz
Risk and Insurance Management Society, Inc.
OSHA Compliance Assistance Conference
September 24, 2002
![Page 2: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/2.jpg)
Who is RIMS?
Largest association for risk managers worldwide
Founded in 19508,000 risk management professionals are
members4,000 member companies – industrial, service,
non-profit, charitable, government entities
![Page 3: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/3.jpg)
RIMS Continued. . .
RIMS member companies:– 84% of Fortune 500– 71% of Fortune 1000
RIMS Annual Conference & Exhibition – Chicago, 2003
www.rims.org Risk Management magazine
![Page 4: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/4.jpg)
RIMS and OSHA
Alliance signed April 2002 Improve perception of
OSHA among RIMS member companies
Exchange technical information and best practices
Demonstrate cost benefits and business value of safety and health management systems
![Page 5: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/5.jpg)
Risk management is the umbrella under which loss
prevention and safety programs function
in a company.
![Page 6: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/6.jpg)
Source: "Techniques of Risk Management," 1995.
How is Risk Management Used in the Workplace?
Companies face different categories of risk:– Asset risk– Market risk– Financial risk– Environmental risk
• Statutes• Regulations• Legal liability
![Page 7: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/7.jpg)
Workplace Continued. . .Risk managers need to cope with all elements of riskLink between organizational
goals/strategies and the risk management function
![Page 8: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/8.jpg)
Why is Risk Management Important?
Risk managers protect and preserve physical, financial, and human resources
Risk managers are not just buyers of insurance
Worker safety is a risk manager’s foremost concern
Loss prevention is the driving force of industry
![Page 9: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/9.jpg)
The primary function of a risk manager is to minimize any harm to his/her employer’s
holdings, including and most importantly, the employees.
![Page 10: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/10.jpg)
Expense is the Issue !!
Management is concerned about the bottom line
Safety programs usually fall off the radar screen
![Page 11: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/11.jpg)
OSHA and Regulatory Liability
OSHA General Duty Clause provides for remedial action against employers that unreasonably risk the safety of their employees
Business community questions necessity of regulations in areas like ergonomic injuries because of the existence of the General Duty Clause
![Page 12: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/12.jpg)
Selling Safety in Healthcare: A Challenge But Also
An OpportunityEvolving industry specific standardsNon-industry specific (difficult to implement)Government vs. government issuesIndustry in a financial downturnLow employee morale Staff shortages
![Page 13: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/13.jpg)
Selling Safety in all Industries
Creates a safer environmentIncreases employee moralIncreases productivityLowers operational costs
– workers’ compensation– group health benefits– other related insurance programs
![Page 14: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/14.jpg)
Risk Management Safety
Reduces LossesMaintains or improves worker
productivityProtects the bottom line
![Page 15: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/15.jpg)
Elements of a Risk Management-Based
Safety Program
Define the exposuresCollect the dataResearch the appropriate local, state or federal
regulationsDevelop the programEmpower the line staff and line managers
![Page 16: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/16.jpg)
Elements Continued. . .
Inform managementEducate the employeesMeasure the resultsModify the program if necessary
![Page 17: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/17.jpg)
Source: "Techniques of Risk Management," 1995.
Reducing loss potential reduces the risk of loss. When loss potential is reduced, losses become more predictable and manageable.
![Page 18: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/18.jpg)
Source: "Techniques of Risk Management," 1995.
Loss Prevention
Benefits– Reduced costs
• Direct loss• Indirect loss
– More efficient use of resources
– Morale and loyalty of employees
Costs– Capital expenditures– Program expense– Administrative
expense– Maintenance cost– Disruption of
operations– Resource allocation
![Page 19: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/19.jpg)
LOSS PREVENTION vs. LOSS REDUCTION
Are Losses Predictable?
![Page 20: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/20.jpg)
Predicting Losses
Collect the dataSpeak to staffInform line managementBuild support
![Page 21: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/21.jpg)
Source: OSHA Trade News Release, November 12, 1999.
Employer Self-Audits
85 percent of employers conduct voluntary self-audits of safety and health
90 percent of employers conducted an inspection of their workplace in the last year
Why do they do it?– To reduce illness and injury rates– To comply with OSHA regulations– To do the right thing
![Page 22: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/22.jpg)
Source: OSHA Trade News Release, November 12, 1999.
Benefits of Voluntary Self-Audits
Non-punitiveProvide employers with opportunity to fix conditions
that violate OSHA regulations before an OSHA inspection
Reduce costs associated with injuries:– Workers’ compensation
– Medical payments
– Sick leave
– Lost productivity
![Page 23: Loss Prevention, Risk Management and Selling Safety Michael Liebowitz Risk and Insurance Management Society, Inc. OSHA Compliance Assistance Conference](https://reader035.vdocument.in/reader035/viewer/2022062517/56649f345503460f94c51682/html5/thumbnails/23.jpg)
Questions?