CHAM - Risk and Crisis Management

© Albert Risk Management Consultants 1

The Perfect Storm:Risk and Crisis Management

CHAM November 2007


Risk ManagementDefinition -the act of managing the possibility of loss or injury .Techniques – Avoidance, Mitigation, Prevention, Retention and Non-insurance Transfer• You can’t avoid all risk, but you can affect frequency

and mitigate losses that occur. • You can’t prevent all risks, but you can reduce them.• What’s left are losses that you retain, transfer to

others, and of course insure.


Is Risk Management Necessary?

Protect your tenants, employees, and your community. Meet Regulatory requirements. Recovery from damages to your buildings. Reduce exposure to liability. Maintains your image in the community. It can reduce your insurance premiums.


Risk Management ProcessIdentificationAnalysis/AssessmentSelection of Risk TreatmentImplementationReview and Evaluate the Plan


Emergency management is the process of

Preparing for an emergencyMitigating the Damage caused by an emergencyResponding to and recovering from an emergency.

It is part of the broader Risk Management processEmergency management is a dynamic process. Planning, though critical, is not the only component. Training, conducting drills, testing equipment and coordinating activities with the community are other important functions.

What Is Emergency Management?


Emergency Management Considerations

Direction and ControlCommunications Life Safety Property Protection Community Outreach Recovery and Restoration Administration and Logistics

FEMA


Common OccurrencesLiability

Slips/falls - ice, water.Tripping - walkways, carpeting, curbsSecurity - stolen property, rape, assault.“Struck by” - objects from roof, light fixtures and by other tenants.

PropertyAuto damageWater damage - roof leaks, broken pipes.Fire - appliances, carelessness“Struck by” - objects from roof, light fixtures and by other tenants.


Un-Common Occurrences

HurricanesEarthquakesTornadoesSink HolesTerrorismDiseases (Flu, etc.)


Disaster PlanRisk AnalysisVulnerability Analysis Identification of Critical Functions Disaster Plan Preparation


Disaster PlanGoal - Continued Operation (a place for your tenants to live!)The Four “R’s” Response, React, Recover and RestoreAn Effective Plan requires the Three “C’s”top level Commitment, Communication, and Cooperation by implementers (teamwork)


Be Proactive vs. Reactive

ID potential exposures, before incidents occur.Follow up on corrective actions to reducerepeat incidents.Be prepared - keep written documentation& keep good records.


Benefits to Controlling Exposures to Loss

Reduces potential liability claims from tenants, guests and contractors.Shows that “reasonable care” was taken.Fewer property losses Reduced maintenance costs.


Steps to reduce exposures

1. Property Audits2. Documentation/Recordkeeping3. Security Practices4. Control Contractor Relationships5. Safety Meetings or Committees


Take the time to conduct Audits

Audit every time you visit.Make sure to conduct a full audit at least once a month.Always audit after a complaint.Document all corrective actions taken, no matter how small (receipts don’t count).


Property AuditsInside & outside buildingsCommon areasLaundry rooms, basements, community roomsFire protectionSecurity


Inside/Outside Buildings

Check On• Lighting• Walkways, entrances• Stairs• Railings, banisters• Signs• Gutters, awnings


Common Areas

• Hallways• Laundry rooms• Community rooms• Roofs• Entrances/exits• Basements

Look At/For:• lighting• railings• stairs, banisters• missing signs• security - locks,

buzzers, cameras

• tripping hazards• walk areas• chemicals


High Hazard AreasPlaygroundsPoolsParking lotsBalconies

Laundry RoomsBus StopsMaintenance rooms


IMPORTANT!

Be sure to promptly fix any problems you find. You don’t want your records to show that you didn’t fix problems that you were aware of.Starting and stopping audits shows neglect in exercising “reasonable care”.


Breach of DutyMeasure actions or omissions to an

accident against the “Reasonably Prudent Person”


Documentation and Recordkeeping


“Sweep” LogsImportant tool for reducing and eliminating slip and fall claims but not occurrences.Used for recording when specific activities take place:• Snow plowing, sanding, monitoring playgrounds and laundry

rooms.• Answering complaints.• Follow up to corrective actions from audits.

Can be used for defense to• prove area was swept, sanded, salted, and inspected

Logs are accepted as evidence by most courts


Causes of Slips and FallsTorn carpetingWaxed or wet floorStray objects (brooms, boxes, etc.)Defective stairsDefective handrails and walkwaysLack of adequate lightingIce and snow accumulation, sand and gravel


SecurityKnow your area.Check locks, lighting (inside and out), landscape.Target areas - elevators, laundry rooms, basement, garages and playgrounds.Rape, assault, theft, and drugs.


ContractorsIs the operation safe?Monitor the work.Get ReferencesContractor Agreements!


Contractors AgreementsIndemnification Language Insurance RequirementsRequirement to follow all state and federal regulations for their trade.Certificate of Insurance Requirement

Centralize control of the process


Liability Claims and InvestigationsTeam Work


First Response ToolsAccident Kit

CameraTape MeasureAccident Report FormTelephone NumbersAddressesPen/Pencil

Slip KitSawdustTowels/Paper TowelsCleaning SuppliesPlastic BagsCaution Tape


Slip and Fall ClaimsContact the claimantPhotos!!Investigate the cause of the fallDetermine notice - Actual vs. ConstructiveLook for any breach of duty


Contact the ClaimantMaintain positive relationshipClaimant may not get an attorneyEstablish and maintain goodwillRecord allegations and facts while the accident is still clear in their mindAlways treat people fairly


Obtain InformationGet Written Statements:

•From Claimant, •From Employees•From Witnesses

Employees do turnover so keep track of ex-employees.


Investigation ItemsIncident report claimant, witnesses, employees and send into main contact personLocus photosPolice reportsWeather reports Accident reconstructionPhotos of damage, ie: scar, vehicle


Locus PhotosDiagram of scene - get clear picture of the accident sceneAssign someone to go and take picture of areaObtain photograph from site - (name of person who took photo and date) Don’t be stingy with film!


Documentation and Recordkeeping

Prove “reasonable care” was takenMust be Written !!!!!Consistent - in content and useUnderstandable (use a form)

All entries should have:- date- time- reason- location- who did what- activity taken


If Slip and Fall Outside the Property

Determine who has care, custody and controlLook for AgreementThird Party (contract with plowing service)Hold Harmless AgreementContractual Transfer


Resourceswww.fema.govwww.disaster-resource.comAl ShapiroAlbert Risk Management Consultants72 River ParkNeedham, MA [email protected]

CHAM - Risk and Crisis Management

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