Risk Management User Group

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Risk ManagementUser Group

• Wednesday, May 18, 2004

2
Welcome

• Michael L. Hay, CGFM, CPPM

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Meeting Agenda

• 830-845 Welcome
• 845-905 Workers Compensation
  Reform Ideas in the Legislature
• 905-925 Update, Business Continuity
  
• 925-1025 Return to Work
• 1025-1040 Break

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Meeting Agenda

• 1040-1110 Lost, Damaged, Destroyed
  Property Address
• 1110-1130 Address by the New Executive
  Director of SORM
• 1130-1150 Accident Investigation
• 1150-1205 Workers Comp. Cost
  Allocation Program
• 1205-1220 FY03 Safety Awards

5
Workers Compensation Reform Ideas in the
Legislature

• Steven Pier
• SORM Legislative Liaison

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Questions Comments?
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Where is Business Continuity in State Government
Today

• Roger Thormahlen, CIC
• State Office of Risk Management
• john.thormahlen_at_sorm.state.tx.us
• 512-936-2944

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The Past

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

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In 1978

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

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In 1989

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

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In 2001

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

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Business Continuity PlanningInvolves

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

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Expectations    

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

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Expectations (contd)

• Have Recovery Time Objectives (RTOs) been
  established for the critical functions?
• Have Recovery Point Objectives (RPO) been
  determined?
• 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?

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Expectations (contd)

• Does the agency have a consolidated Continuity
  and Recovery Strategy across the enterprise?
• What method best describes the agency strategy?
• Do the strategies include a diagram and inventory
  description of current communication and data
  systems?
• Does the agency have Emergency Response
  procedures to respond to disastrous events?

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Expectations (contd)

• Does each mission-critical business function
  within the agency have a recovery plan in place?
• Has the agency identified critical support
  vendors and incorporated them into the call tree?
• Does the agency have enterprise Business
  Continuity Awareness and Training?
• Has the Business Continuity Plan been tested?

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Expectations (contd)

• How and when was the plan tested?
• Does the agency have Change Maintenance Process
  for the plan?
• Does the agency have a designated person to speak
  to the media?
• Does the agency have a call list to communicate
  with employees and critical vendors?
• Does this call list include alternate phone
  numbers, e-mail addresses?

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BCP Discipline Goals

• SORMs primary goal is for the states BCP
  planning efforts to parallel accepted industry
  standards established by Disaster Recovery
  Institute International (DRII)
• http//www.drii.org
• And the federal governments Continuity of
  Operations Planning (COOP) model
• COOP guidance can be found at FPC66
  http//www.fema.gov/regions/x/npd/coop.shtm under
  Resources

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Tools Available Through SORM

• SORMs BCP website http//www.sorm.state.tx.us/bcp
  /init_overview.html

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Tools (contd)

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

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Questions Comments?
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RETURN TO WORK

• Pat Crawford
• Texas Workers Compensation Commission

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STAY AT WORKRETURN TO WORK

• WHATS BEST FOR
• YOUR BUSINESS
• YOUR EMPLOYEES

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

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• TEXAS EMPLOYERS PAY

• HIGHEST WORKERS COMPENSATION MEDICAL COST IN
  NATION

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• AVERAGE MEDICAL COSTS

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

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• TEXAS EMPLOYERS ALSO PAY

• TEMPORARY INCOME
• BENEFITS DOI 2000
• 31 WEEKS _at_ 305
• 9455

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• 20,000
• AVERAGE COST
• DOI 2000

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• PAY AN ADDITIONAL 4000
• FOR
• WORK HARDENING
• WORK CONDITIONING
• PROGRAM

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• BUSINESS COSTS

• REPLACEMENT COSTS
• OVERTIME / WAGES
• NEW INEXPERIENCED EMPLOYEE
• BUSINESS LOSS?

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• EARLY RETURN TO WORK
• BENEFITS TO INJURED WORKERS

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

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(No Transcript)
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• IMPACT OF LENGTHY LOST
• TIME ON INJURED WORKERS

• MORE SECONDARY COMPLICATIONS
• MORE TREATMENT
• POOR ATTITUDE TOWARD EMPLOYER
• FINANCIAL BURDENS

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(No Transcript)
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• 6 MONTHS OFF 25
• CHANCE OF EVER RETURNING TO PRODUCTIVE WORK

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• REQUIREMENTS!

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

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• WHAT SERVICES?

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

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• ELIMINATE
• UNNECESSARY
• LOST TIME

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• TASK ANALYSIS

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

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(No Transcript)
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• COMMITMENT

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

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• EDUCATION

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

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• INVOLVE EMPLOYEES !

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

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• OPPORTUNITIES
• FOR INVOLVEMENT

• EDUCATION
• REVIEW ACCIDENT HISTORY!
• TASK ANALYSIS!
• WORK ASSIGNMENTS - THEIRS AND OTHERS

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• WHO DOES WHAT, WHEN, HOW
• WHAT TO EXPECT

• EMPLOYEES
• EMPLOYER
• INSURANCE CARRIER
• NO SURPRISESMORE TRUST

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• YOU AND YOUR CARRIER

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

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• COMMUNICATE WITH
• INJURED EMPLOYEES

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

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If you dont think you can make it into work
tomorrow, give me a call.
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• YOU AND THE
• TREATING DOCTOR

• IMPROVE COMMUNICATION
• What can YOU do?

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• BE PREPARED

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

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• SUPERVISORS, MANAGERS
• THE BOSS

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

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(No Transcript)
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• WORK ASSIGNMENTS

• TEMPORARY OR NOT?
• TRANSITIONAL
• HEALING
• ADA FMLA
• MEDICALLY APPROPRIATE
• PRODUCTIVE
• TASKS

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• ASSIGNMENTS

• WITH EM - NOT TO EM
• -MEANINGFUL PRODUCTIVE-
• WORK OF VALUE

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

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• Pat Crawford
• Return to Work Education Coordinator
• Rtw_at_twcc.state.tx.us
• Pat.crawford_at_twcc.state.tx.us
• [phone]
• Texas Workers Compensation Commission

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Questions Comments?
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Break Time!!!!

• See You at 1040am

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Lost, Damaged, Destroyed Property

• Michael L. Hay, CGFM, CPPM
• Director of Risk Assessment and Loss Prevention,
  Information Resources - SORM

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

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American Society for Testing and Materials (ASTM)
E2131.01 Standard Practice for Assessing Loss,
Damage, or Destruction of Property

• Describes the various reasons for LDD
• Defines terms specific to the standard
• Describes how LDD analysis can be used to
  evaluate adequacy of property Control
• Describes actions required when LDD is discovered

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ASTM Standard Practice (contd)

• Calculation of LDD Ratios (Overall and Immediate
  Values)
• Describes acceptable ratios for various types of
  organization and properties
• Describes reporting requirements and content
• Describes which parts of the standard are firm
  criterion and which are guidelines
• STANDARD FOR GOVERNMENT IS 2 OF VALUE OR ITEMS

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LDD

• In the private sector, LDD is a pure property
  risk.
• In the public sector, LDD is also a political
  risk.
• 78th 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.

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LDD (contd)

• The State has historically fallen below the 2
  trigger
• GASB 34/35 raised capitalization thresholds for
  personal real property
• The concept of value is relative

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LDD (contd)

• Historical Cost
• Acquisition Cost Associated Costs to Render an
  Asset to Service
• Net Book Value
• Historical Cost less Accumulated Depreciation

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SORM LDD Benchmarks

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

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SORM LDD Report Structure
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LDD Total for Historical and Net Book
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LDD Sorted by Historical Cost
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LDD Sorted by Net Book Value
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Questions Comments?
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Introduction to New Executive Director of SORM

• Jonathan D. Bow

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(No Transcript)
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Questions Comments?
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Investigation Methods

• Sam Stone
• SORM Training Specialist

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Mishap

• Investigation
• Analysis

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(No Transcript)
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The Investigation Process
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ADSO Class

• Mechanics of an Investigation
• Root Cause Analysis

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Sequence of Events Z-Process Model
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Example of Analysis Diagram
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(No Transcript)
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Fishbone Analysis
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Fishbone Analysis
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Fishbone Analysis
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Fishbone Analysis
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Fishbone Analysis
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Fishbone Analysis
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Fishbone Analysis
90

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USEFUL TOOLSBring Along Some Help

• Checklist
• Tape Measure
• Tape Measure
• Camera
• Attitude

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Be PositiveFact-Finding, Not Blame-Finding

• Identify, Encourage, and Reward Safe and
  Proactive Work Practices
• What Are People Doing Right?
• Catch people doing something right.

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Corrective Action

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

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Covered State Agencies Reported Injuries FY2003
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(No Transcript)
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(No Transcript)
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Questions Comments?
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WC Cost Allocation Program

• Stuart B. Cargile
• SORM CFO

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Questions Comments?
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FY03 Safety Awards
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Sustained Award

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

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Bronze Award

• IFR decrease of 10 to 29 below the average of
  the prior five years IFR.

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Silver Award

• IFR decrease of 30 to 49 below the average of
  the prior five years IFR.

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Gold Award

• IFR decrease of 50 or more below the average of
  the prior five years IFR.

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Risk ManagementUser Group

• Thank you for attending!