Module 6: Risk Management 7% PHR (16 questions) 7% SPHR (16 questions )

1. Module 6: Risk Management7% PHR (16 questions)7% SPHR (16 questions) © SHRM

2. Categories of Operational Risk • Personnel risk (fraud and error) • Physical assets (business environments) • Technology (viruses) • Relationships (lawsuits) • External/regulatory (external fraud) HR role: Examine HR policies to prevent or mitigate loss and ensure business continuity. © SHRM

3. Risk Management Techniques Tools: Enterprise risk management (ERM) software systems and risk management scorecard © SHRM

4. Continuity and Recovery Business continuity planning • Identifies potential threats and impacts. • Plans for disruption, interruption, or loss of business functions. Disaster recovery planning • A set of guidelines to be used for recovery of data. © SHRM

5. Insurance That Mitigates Risk • Employment practices liability insurance (EPLI) • Protects against claims of discrimination, wrongful termination, or sexual harassment. • Errors and omissions (E&O) insurance • Protects against employment claims; covers economic and emotional damages. • Directors’ and officers’ (D&O) liability insurance • Protects directors, officers, and the corporation from claims related to SEC violations or shareholder class actions. © SHRM

6. Risk Management Legislation: OSHA Employee rights Employees must comply with OSHA standards and have a right to: • Demand safety and health on the job. • Request inspections. • Have an authorized representative accompany an inspection. • File a complaint. • Be informed of workplace hazards. • Receive training. © SHRM

7. Keep employees informed. Display OSHA posters. Provide copies of rules and regulations. Post OSHA citations. Maintain accurate records. Permit authorized employee representation during an OSHA inspection. Keep employees safe. Correct violations. Allow employees to refuse abnormally dangerous work. Provide personal protective equipment. Provide medical surveillance. Provide training. Enforce rules and regulations. Risk Management Legislation: OSHA Employer responsibilities © SHRM

8. Which of the following is an example of an employer’s rights under OSHA? A. To apply to OSHA for a temporary or permanent variance from a standard B. To appoint an employee representative to accompany OSHA during inspections • To refrain from enforcing rules that cause economic hardship for the company D. To review and rule on employee protests regarding unsafe working conditions Answer: A © SHRM

9. Emergency Exit Procedures Occupational Noise Exposure Machine Guarding Hazard Communication Control of Hazardous Energy—Lockout/Tagout Bloodborne Pathogens Confined Space Entry Personal Protective Equipment Process Safety Management OSHA Regulatory Standards © SHRM

10. Injury and Illness Definitions PHR only • Occupational injury: Injury that results from a work-related accident or exposure involving a single incident. • Occupational illness: Medical condition or disorder caused by exposure to environmental factors associated with employment. © SHRM

11. Recording Criteria PHR only For both work-related illnesses and injuries: • Death • Days away from work • Restricted work or transfer to another job • Loss of consciousness • Diagnosis by a licensed health-care professional • Medical treatment beyond first aid © SHRM

12. An employer learns that a worker has fractured an arm on the job. Within what time frame must the employer complete OSHA Form 300? PHR only A. 3 working days B. 7 working days C. 8 hours D. 24 hours Answer: B © SHRM

13. OSHAInspection Priorities © SHRM

14. OSHA Violations © SHRM

15. Drug-Free Workplace Act Federal contractors with contracts of $100,000 or more must: • Develop a policy that maintains a drug-free workplace. • Specify penalties for policy violations. • Provide a copy of the policy to employees. • Establish a drug-awareness program. © SHRM

16. Safety Hierarchy © SHRM

17. Safety Responsibilities © SHRM

18. Safety Committees • Are elected by peers. • Encourage safety awareness. • Motivate employees. • Identify and correct hazards. Ensure that the safety committee does not become an employer-dominated labor organization—a violation of the NLRA. © SHRM

19. Influences on Accidents & Incidents © SHRM

20. Classifying Incidents • Failing to use protective equipment • Improper dress or use of equipment • Performing unauthorized procedures • Defective equipment • Noise, heat, dust, or vibration • Poor ventilation • Improper lighting • Unsafe floor surfaces Unsafe acts Unsafe conditions © SHRM

21. Accident Prevention • Design work sites and flow to manage risk. • Assign safety specialists and line managers to committees. • Analyze why accidents happen and have outside experts inspect working conditions. • Provide updated job and safety training; test and document results. • Provide safety rewards and recognition. © SHRM

22. Ergonomics Programs • Ergonomics team • Work-site analysis • Job redesign • Surveys/monitoring/feedback • Training • On-site exercise programs • Budget Include: • Musculoskeletal disorders • Computer vision syndrome • Lower back strains • Sick building syndrome Reduce: © SHRM

23. Modified-duty programs require that injured employees A. return to less-strenuous jobs on a permanent basis. B. refrain from taking FMLA leave until they can return to work. • stay on disability until they can perform all the duties of their current jobs. D. perform jobs that accommodate their current limitations. Answer: D © SHRM

24. Current illnesses Hepatitis B virus Hepatitis C virus HIV/AIDS Tuberculosis Future pandemics Disease that is new to the population Human infection that causes serious illness Agent that spreads easily Health Hazards Infectious diseases © SHRM

25. Physical Heat, noise, air conditioning, radiation, ventilation, smoking, sanitary conditions, drinking water, etc. Chemical Dust, fumes, gases, toxic materials and chemicals, carcinogens, smoke Biological Bacteria, fungi, insects Health Hazards Environmental factors © SHRM

26. Employee Assistance Programs • EAP options: • In-house • Outside contractors • Consortium • Affiliate Services provided: • Financial • Workplace violence • Career • Legal • Family and marital • Alcohol and drug abuse • Emotional © SHRM

27. Wellness and fitness Employee Wellness Programs Nutrition and weight control Stress reduction Smoking cessation © SHRM

28. A written policy on substance abuse benefits the organization because A. it’s a deterrent to absenteeism and tardiness. B. supervisors are more willing to confront employees with impaired performance. • it fulfills compliance with state and local laws and ordinances. D. top management does not have to deal with issues related to drug abuse. Answer: B © SHRM

29. Drug Testing Categories © SHRM

30. Drug Intervention Strategies © SHRM

31. Security Measures • Security guards • Preventive audits • Identification and external control systems • Fingerprints, magnetic cards • Structural barriers • Gates, fences • Security hardware • Alarms, sensors © SHRM

32. Fraud Control Practices • Inventory counts • Fraud hotlines • Sound auditing procedures • Video surveillance • Dollar-limit authority © SHRM

33. Risk Analysis Vulnerability = Degree of probability that loss will occur + Severity of impact Probability • Virtually certain • Highly probable • Moderately probable • Improbable • Severity • Fatal • Very serious • Moderately serious • Negligible © SHRM

34. Emergency Response Plan Guidelines • Involve senior management. • Create a team. • Set priorities. • Identify resources. • Communicate the plan. • Keep the plan up-to-date. • Test the plan. © SHRM

35. Reduce stress by giving employees a vehicle to express concerns. Reduce inappropriate responses by checking employee references and monitoring behavior. Reduce opportunity by maintaining a zero tolerance policy for weapons and violence. Causes of Workplace Violence Violence = Stress + Inappropriate responses + Opportunity © SHRM

36. Government Responses to Terrorism • USA PATRIOT Act • Expands powers of the government to deal with suspected terrorists or those harboring them. • Department of Homeland Security • Creates a National Response Plan to manage domestic incidents. • Analyzes threats and intelligence. • Guards borders and airports; protects infrastructure. © SHRM

37. Protection of Proprietary Information © SHRM